Lease Accounting Software
ASC 842 – IFRS 16 – GASB 87
See why LeaseQuery is rated #1 by CPAs and is the preferred software for the new lease accounting standards
LeaseQuery: Cloud-Based Software for ASC 842, IFRS 16, and GASB 87
What exactly is lease accounting software? In short, it’s just what it sounds like. Lease accounting software provides the calculations and functionalities that are necessary to comply with the financial reporting standards for lease contracts. Those standards include ASC 842, introduced by the FASB in 2016, as well as IFRS 16, GASB 87, and various others.
LeaseQuery is software for the current and new lease accounting standards, simplifying and improving lease accounting for organizations reporting under FASB, IFRS, and GASB. The solution provides accurate calculations for lease accounting in addition to everything else needed for compliance: journal entries, reports, disclosures, and a knowledgeable support staff.
LeaseQuery is already compliant with the new lease accounting standards. Choose from the options below to learn more about the system’s features for each one.
More Than a Lease Accounting Tool
Beyond lease accounting, LeaseQuery also functions in the following roles:
Lease Database Software
Better interdepartmental collaboration, efficiency, and data security
By storing and providing access to your entire portfolio of leases, contracts, and other documents, LeaseQuery solves challenges for your colleagues across the enterprise. Our cloud-based software houses your leases in a centralized and secure database that’s available anywhere with an internet connection and provides data security that’s not possible with Excel.
Give accounting and other departments the appropriate level of access, based on their roles, and they can set alerts for upcoming dates, mark documents for review/completion, or use the search function to quickly pull up contracts. You can even give auditors read-only access for a simpler audit process. Your teams can then collaborate in a more productive and secure manner.
Financial Decision Support Tool
Improved budgeting, forecasting, and more opportunities for cost savings
The LeaseQuery custom reporting studio functions as an advanced financial decision-making tool that gives you more insight into the financial details on your leases than you’ve ever had before. This new visibility will lead your organization to better forecasting, budgeting, and capital allocation.
LeaseQuery’s critical date alerts and robust reporting tools also enable you to identify and address issues with your leases long before they become problems. These capabilities present potential cost-savings and empower confidence and accuracy.
Lease Management and Lease Tracking Software
Reduce user error and manage your leases with confidence
Although tracking leases is possible with Excel or a Google Sheet, it’s certainly not ideal. Failure to meet accounting compliance isn’t the only thing that will cost your business money. Missing renewal dates, failing to meet data requirements, miscommunicating across multiple departments, and relying on human accuracy can also result in added cost.
Implementing accounting software to aid your lease tracking and management will streamline and improve your processes, catching critical errors before they cause problems.
How to Find the Best Lease Accounting Software for Your Business
Between juggling your budget and convincing key stakeholders, finding the right product for your organization is no easy task. The new lease accounting standards are complex, making it crucial for you to choose the system with the functionality necessary for your compliance.
Consider the following in order to avoid any potential missteps:
Evaluate more than just cost
Occasionally, procurement teams and senior leaders will push for the most inexpensive option, but the cheapest solution may not have all the functionalities you need for long-term compliance. Here are a few other factors to consider:
- How difficult is the setup?
- Can you customize reporting?
- Does it offer a custom calendar and support for 13-period accounting?
See more on our features page:
Give yourself and your team the time for due diligence
Don’t get stuck trying to compare lease accounting software providers at the last minute. Your team will need ample time to compare the different systems and view demos. Then, you will need time to enter your leases into the system. This is especially true if you have not yet transitioned.
In our 2019 survey of accountants, we found that many companies who expected an easy transition process found it much more difficult than they anticipated.
What to Look for When Comparing Lease Accounting Solutions
A knowledgeable support staff
Is the provider’s support staff competent with the system and do they know how to apply the lease accounting guidance correctly? Having appropriate support that is well-versed in your standard is crucial for a smooth implementation. They should be capable and available to answer your questions and provide assistance.
Automation and efficiency
The accounting software you choose for your business should provide full compliance right out of the box, perform accurate lease accounting, and include many other features that automate tasks to save time and money.
When comparing solutions, be sure to ask the following:
- When exporting reports, are they already formatted in compliance with the standard’s disclosure requirements?
- Does the software provide automated alerts for critical dates, such as renewals?
- Are practical expedients automatically applied once you’ve elected them?
Data security and support for your internal controls
Public companies must comply with the Sarbanes-Oxley (SOX) Act, a 2002 regulation that improves the accuracy and reliability of corporate disclosures. Section 404 of the SOX Act requires management and external auditors to report on the adequacy of a company’s internal control over financial reporting. Providers should be aware of Section 404 of the SOX Act and able to show you how their lease accounting system’s built-in functionalities reinforce your internal controls.
System and Organization Controls (SOC) reports – issued by a third-party CPA – address a software company’s ability to provide controls applicable to your internal controls over financial reporting. Each of the three types of SOC reports focuses on different aspects of a company’s controls (e.g., financial and non-financial), and various levels of scrutiny from the third-party issuer. SOC Type 1 and SOC Type 2 are the most relevant reports for lease accounting software.
Your provider should be able to present a letter of verification from the firm that performed the SOC report to ensure their software is coded and functioning properly so errors aren’t created in the system.
Internal Control Functionalities
Reading Lease Accounting Software Reviews
The best way to assess any technology before investing time and money into it is by hearing from those who have used it. Over two-thirds of B2B buyers say reviews are a “very important” consideration in the buying process.
Many of LeaseQuery’s customer reviews are from accountants who are in the weeds of day-to-day lease accounting. While several of our competitors have received good reviews, most of them aren’t actually from accountants, but rather people in real estate, legal, lease administration, and more.
When trying to decide how much weight a solution’s reviews carry, be sure to look for how many of those reviews were made by people who understand lease accounting specifically.
Augment reviews with feedback from your peers
Go beyond online reviews and reach out to your peers to find out which solutions they’re using. A one-on-one conversation allows you to ask them questions you may not see in a review.
With the lease accounting effective dates approaching, many companies are getting into the software business without taking the time to consider all the functionalities for compliance. Having a keen eye for detail will help you make the right choice.
Persuading your stakeholders
with the right reviews
To help internal stakeholders understand the value of using a product that’s been reviewed by your peers, remind them how often they are asked for audited financials when entering new business relationships or renewing contracts. By selecting a solution that has been reviewed by other like-minded accountants, you are better able to judge the seller’s trustworthiness and whether or not you should buy the software.