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. Learn more about Visual Lease.

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. Learn more about LeaseQuery.

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. Learn more about NetGain.

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.

RSM's value

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. 

Fundamental Changes 

New requirements:

  • Transition and disclosures
  • IT systems and applications
  • Documentation
  • Embedded leases

Effects on:

  • Financials,  debt covenants and operating metrics 
  • Property, sales and use tax

A comprehensive approach

Integrated impact assessment:

  • Identification of critical details
  • A deep dive into a sample of leases and possible leases
  • Create a custom, cross-functional team
  • Get a customized implementation 
  • Evaluation and technology recommendations

Use of effective technology

Our technology services:

  • Project management services
  • Business requirement definition
  • Software selection
  • Lease abstraction
  • Software Implementation
  • Lease Accounting Outsourcing

Additional resources

Top 5 considerations when implementing an ASC 842 technology solution

Implementing (ASC) 842 will likely require a lease accounting software package. These five topics are key areas for you to consider.

How can outsourcing support your lease accounting strategy

The complexities of ASC 842 changes are difficult to manage in-house, leading companies to consider lease accounting outsourcing.

Lease accounting: 5 critical factors for successful implementation

Given the complexities of ASC 842, consider these critical factors for successful implementation of the standard.

Successfully selecting a lease accounting technology solution

While ASC 842 will affect leasing activities, technology solutions can help ease the burden that the new standard brings.

Why you need to start your ASC 842 technology selection now

With ASC 842 deadlines approaching, you should start your software implementation now to ensure that you have time to choose a platform.

Managing implementation of ASC 842 for international lease portfolios

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.

Learn more about our approach.  

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