Financial close is one of the most time-sensitive and high-pressure periods for finance and accounting teams. When lease accounting is added to the mix, especially under standards like ASC 842 and IFRS 16, the complexity increases significantly. Multiple data sources, manual calculations and tight deadlines can slow down the process and increase the risk of errors. Streamlining lease accounting during financial close is essential for accuracy, efficiency and peace of mind.

Understand and Centralize Lease Data

One of the biggest obstacles during financial close is fragmented lease information. Lease contracts may be stored across emails, shared drives, spreadsheets or filing cabinets, making it difficult to confirm completeness and accuracy. Centralizing all lease data into a single system or repository creates a reliable source of truth. This allows accounting teams to quickly access key terms such as lease payments, renewal options, discount rates and lease modifications without scrambling during financial close.

Automate Calculations and Journal Entries

Manual lease calculations are not only time-consuming but also prone to errors. Automating calculations for right-of-use assets, lease liabilities, interest expense and amortization can significantly reduce close time. Lease accounting software can generate accurate journal entries in accordance with accounting standards and post them directly to the general ledger. Automation ensures consistency across reporting periods and frees up valuable time for analysis rather than data entry.

Establish Standardized Close Procedures

A standardized lease accounting close checklist helps ensure nothing is missed during the reporting cycle. Clearly defined procedures, such as validating lease changes, reviewing journal entries, reconciling balances and preparing disclosures, create structure and accountability. Assigning ownership for each task and setting internal deadlines can prevent last-minute surprises and bottlenecks. Over time, consistent processes also make it easier to train new team members and scale operations.

Monitor Lease Changes in Real Time

Lease modifications, terminations and new agreements can occur throughout the month, but they are often discovered too late, sometimes right before close. Tracking lease changes in real time allows accounting teams to address impacts proactively rather than reactively. Regular communication between accounting, real estate, procurement and legal teams helps ensure lease updates are captured promptly and reflected correctly in financial statements.

Leverage Reporting and Reconciliation Tools

Reconciling lease balances with the general ledger is a critical step during financial close. Reporting tools that provide roll-forwards, variance analysis and audit-ready schedules make this process faster and more transparent. These reports not only support internal reviews but also simplify auditor requests, reducing back-and-forth and shortening the overall close timeline.

Prepare for Audit and Compliance Early

Audit and compliance requirements can extend close timelines if preparation is delayed. Maintaining thorough documentation, version control for lease agreements and clear calculation logic throughout the year reduces pressure during financial close. When auditors can easily trace balances back to source data, reviews become smoother and less disruptive.

Turning Lease Accounting Into a Predictable Process

Streamlining lease accounting during financial close is about more than speed – it’s about confidence and control. By centralizing data, automating workflows, standardizing procedures and staying ahead of lease changes, especially with the help of lease accounting software like the one provided by Yardi Corom, finance teams can transform lease accounting from a recurring challenge into a predictable, well-managed process. This allows organizations to close faster, reduce risk and focus on strategic financial insights rather than last-minute corrections.

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.