We all know about lease accounting and that it is a procedure that a company keeps track of its financial or monetary outcome on lease activities. And it makes sense to make use of tools and software for that matter. But have you come across the term lease accounting software? What is it, and what are the key features of our solution? Keep reading to discover why it’s worth applying this cutting edge financial app in your organization!
Lease accounting software – what is it?
What is lease accounting software? It’s a cutting edge type of financial application that makes it possible to calculate the impact of lease accounting on the balance sheet and PnL. It is worth mentioning that this solution makes lease accounting in accordance with IFRS 16 much easier for customers.
After entering the relevant contract conditions such as payment frequencies, lease payments and discount rates, the financial application calculates and generates journal entries. These journal entries have an impact on balance sheets, income statements and the cash flow of the customers. In addition, the solution provides reports and schedules which are required for disclosure notes.
The Most Important Features
With reliability and seamless performance you certainly get the best approach to accounting and its management. Now, when you know what lease accounting software is, it’s time to discuss its key functionalities:
- Reconciliation function – makes it possible to automatically decrease lease expenses
- lease accounting – takes care of the calculations of high complexity to prepare journal entries
- Close automation – helps to optimize the workflow and reporting,
- disclosure management – generates almost all required disclosure notes related to IFRS 16
- Liabilities – stores information about assets, and lease liabilities. Data concerning each contract is displayed in a separate table
- The impact of modifications and adjustments of leasing contracts on the financial statements are calculated by the app
- Pretty simple and user-friendly interface – is welcoming to understand ins and outs
- Smart and flexible methods for showcasing contracts and with standard system you do not need any add-on
- Lease liability – for re-measurements on automated basis
- Collaboration – with working together approach you get the assurance of getting many users on-board, give remote access to work and privilege of read-only auditor access
- Better controls – it minimize the error ensure the data validation, duplicate entry keep off, role based access and the change of lease reporting/ audit trial comes as a bonus
- Smart and efficient reporting – it is yet another feature of lease accounting software. You get reports just by a click including automation of scheduling, ready-to-serve disclosure reports, option to infinite reports for even streamlined workflow and bigger agnostic journal entries
What is lease software? The takeaway
So, what is lease software? It’s a real must-have for every company that has to comply with IFRS 16 and wants to facilitate the everyday work in accounting. Thanks to it, complex calculations are run automatically and are less prone to errors. With efficiency you also get the perfect management of the financial parameters of your rental running business with all income records.