Lease accounting has become increasingly complex in recent years, especially with the introduction of new standards such as ASC 842, IFRS 16 and GASB 87. These regulations require businesses to bring most leases onto the balance sheet, drastically changing how lease obligations are reported. As a result, ensuring audit compliance is more challenging, and more critical, than ever.

This is where lease accounting software proves invaluable. Designed to automate, streamline and standardize lease management and reporting, lease accounting software not only simplifies day-to-day operations but also plays a key role in maintaining audit readiness and regulatory compliance.

What is Lease Accounting Software?

Lease accounting software is a specialized tool that helps organizations track, manage and report lease agreements in accordance with accounting standards. It centralizes lease data, automates calculations (like amortization and depreciation) and generates financial reports that comply with required frameworks.

Why Audit Compliance Matters

Audit compliance isn’t just about avoiding fines, it’s about ensuring transparency, accuracy and trust. Auditors need to verify that financial statements accurately reflect lease obligations, including lease liabilities, right-of-use (ROU) assets and expense recognition. Any errors or omissions can lead to restatements, reputational damage or regulatory scrutiny.

5 Ways Lease Accounting Software Supports Audit Compliance

Centralized Lease Data
Lease accounting software creates a single source of truth by centralizing all lease agreements, amendments and financial schedules in one platform. This eliminates version control issues and helps auditors quickly access relevant documentation during the review process.

Automated Compliance with ASC 842, IFRS 16 and GASB 87
These accounting standards require complex calculations for lease classification, interest expense, ROU asset amortization and liability recognition. Manual calculations are error-prone and difficult to scale. Lease accounting software automates these processes, ensuring consistent and accurate application of the rules.

Audit Trails and Version History
Transparency is key to a successful audit. Modern software solutions maintain a complete audit trail, recording every change made to lease data, including who made the change and when. This accountability and traceability provide auditors with the confidence they need in your reporting processes.

Standardized Reporting
Lease accounting software offers built-in reporting tools that generate disclosure-ready reports in line with regulatory requirements. These reports, such as ROU asset schedules, lease liability roll-forwards and lease maturity analyses, can be quickly exported and reviewed by auditors.

Time and Cost Savings
Audit preparation can be time-consuming, especially for companies with large or complex lease portfolios. By automating reconciliations, calculations and reporting, lease accounting software reduces the manual burden on finance teams, lowers the risk of errors, and speeds up audit completion.

Conclusion

Audit compliance is no longer a once-a-year concern but an ongoing responsibility that demands precision and organization. With lease accounting software, like the one provided by Yardi Corom, companies can streamline the compliance process, reduce audit risk and ensure financial transparency. In an environment of heightened scrutiny and evolving regulations, the right software isn’t just a convenience, it’s a necessity.

Whether you’re managing ten leases or a thousand, investing in a robust lease accounting solution is one of the smartest ways to stay audit-ready, compliant and confident.

Yardi Corom is a comprehensive and user-friendly accounting, lease and workplace management solution for CRE tenants. Our cloud-based software solution increases efficiency and accuracy across your entire lease portfolio: manage leases and subleases, track key lease data, centralize transactions and become FASB/GASB/IFRS compliant. To learn more, you can visit our website or schedule a meeting with our team.