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Lease Accounting Technology
Lease accounting is experiencing revolutionary changes across all industries
The new ASC 842 standard brings a wide range of implications across most organizations, and will require most operating leases to be reflected on the balance sheet, which by itself is a sizeable task.
The data and systems challenges ASC 842 will bring to companies are significant, and without adequate planning and preparation may be overwhelming. Given the time commitment required to implement the standard and the level of complexity involved, companies should start gathering data, abstracting leases, selecting and implementing technology solutions soon to avoid challenges down the road.
We have strategic relationships with several key vendors in the space including:
Visual Lease - lease accounting and lease administration software specifically designed to manage a company’s real estate and equipment leases. Visual Lease gives you complete control over your leases and keeps you compliant with US GAAP (ASC 842) and international IFRS 16 standards.
LeaseQuery - simplifies accounting for leased assets including real estate property, equipment, and vehicles. This lease accounting software is already compliant with the new lease accounting standards, ASC 842 and IFRS 16. LeaseQuery calculates the ROU asset and lease liability under the new rules.
NetGain - designed to enable businesses to operationalize the requirements of ASC 842 and IFRS 16 throughout conversion, implementation, reporting and ongoing lease management. This solution was developed within and is ideal for NetSuite.
Lease Accelerator - performs analysis and transaction management processes which are both GAAP and IFRS-based. Historically an equipment/asset-based platform with real estate functionality.
Tango - the market leader in strategic location management, Tango helps organizations manage all real estate and facilities related requirements from a single-end-to-end solution in the cloud.
Depending on your unique needs, we can implement one of these solutions to help with data aggregation, data cleanliness and support that will drive the timeliness and success of the lease data collection effort.
OurTechnology and Management consulting services, combined with our technical accounting capabilities allows us to provide services to help you through the entire scope of meeting the new standard from selecting the right solution through implementation and post go-live support.
We have analyzed the market to determine the capabilities of many solutions currently in the market and in development to meet the 842 requirements as well as handle other components of lease administration.
Implementing (ASC) 842 will likely require a lease accounting software package. These five topics are key areas for you to consider.
The complexities of ASC 842 changes are difficult to manage in-house, leading companies to consider lease accounting outsourcing.
Given the complexities of ASC 842, consider these critical factors for successful implementation of the standard.
While ASC 842 will affect leasing activities, technology solutions can help ease the burden that the new standard brings.
With ASC 842 deadlines approaching, you should start your software implementation now to ensure that you have time to choose a platform.
For global companies, local languages, currencies, systems and regulations can make the implementation process challenging.
An integrated team
RSM has assembled an integrated team comprised of members specializing in technical accounting and technology solutions to assist companies in implementing ASC 842. This multidisciplinary team addresses technology issues, internal controls, income tax effects and technical accounting questions. We also can help companies identify the best technology solution and ensure it is implemented to meet current and future business needs.