The Power of Lease Accounting Software for Manufacturers
Leasing has become an increasingly popular option for consumers to purchase goods and services. As a result, many manufacturers and service providers have started offering lease options for their products to better cater to growing demand. However, with lease accounting being a complex and constantly evolving area, managing lease portfolios has become a challenging task. That’s where lease automation and accounting software comes in.
Here we’ll explain what lease accounting software is and the value it provides to manufacturers who offer leasing as an option for customers to purchase their goods. We will also explore some of the specific software solutions available to support lease accounting.
What is Lease Accounting Software?
Lease accounting software is a tool used by businesses to manage their lease portfolios. It allows you to automate and streamline the process of accounting related to leases, from lease creation to lease termination, and provides businesses with the information they need to make informed decisions about their lease portfolios. It enables businesses to keep track of lease agreements, payments, and assets in one place, reducing the risk of errors and ensuring compliance with lease accounting standards.
Value of Lease Accounting Software for Manufacturers
Manufacturers who offer leasing as an option for customers to purchase their goods face several challenges, such as managing lease portfolios, keeping track of lease payments, and ensuring compliance with lease accounting standards. Lease accounting software helps manufacturers overcome these challenges by providing them with a comprehensive tool to manage their lease portfolios. Here are some specific ways the right lease management software provides value to manufacturers:
1. Compliance with Lease Accounting Standards
Lease accounting standards, such as ASC 842 and IFRS 16, require businesses to account for leases on their balance sheets, which can be a complex and time-consuming process. Lease accounting software automates the process of lease accounting and ensures compliance with lease accounting standards, reducing the risk of errors and enabling businesses to focus on their core operations.
2. Enhanced Visibility and Control
Purpose-built lease management software provides manufacturers with a single source of truth for all their lease data, enabling them to track lease agreements, payments, and assets in real-time. This enhanced visibility and control enable manufacturers to make informed decisions about their lease portfolios, such as identifying under-performing leases, renegotiating lease terms, or terminating leases that are no longer profitable.
3. Improved Financial Reporting
Lease accounting software generates accurate and timely financial reports, providing manufacturers with the information they need to make informed decisions about their lease portfolios. These reports include lease liability and asset values, lease payments, and lease expenses, enabling manufacturers to assess the financial impact of their lease portfolios and optimize their leasing strategies accordingly.
4. Reduced Risk and Errors
Lease management software reduces the risk of errors in lease accounting by automating the process of lease accounting and ensuring compliance with lease accounting standards. This reduces the risk of non-compliance penalties and other legal issues, providing manufacturers with peace of mind and allowing them to focus on their core operations.
5. Improved Customer Experience
Leasing has become a popular option for consumers to purchase goods and services. Lease accounting software enables manufacturers to manage their lease portfolios more efficiently, which, in turn, improves the customer experience. Manufacturers can offer more competitive lease terms, provide better customer service, and enhance the overall leasing experience for their customers.
The Top Software Available to Support Lease Accounting
There are several software solutions available in the market, each with their unique features and benefits. Here are some popular lease management software solutions:
1. LeaseQuery
LeaseQuery is a cloud-based lease management software solution that helps businesses manage their lease portfolios. It automates the process of lease accounting, provides real-time visibility and control over lease data, and generates accurate and timely financial reports. LeaseQuery is designed to comply with lease accounting standards such as ASC 842 and IFRS 16, and provides businesses with a comprehensive tool to manage their lease portfolios.
2. LeaseAccelerator
LeaseAccelerator is a lease accounting and management software solution that helps businesses comply with lease accounting standards and optimize their lease portfolios. It provides businesses with real-time visibility and control over lease data, automated lease accounting, and accurate financial reporting. LeaseAccelerator is designed to support ASC 842 and IFRS 16 lease accounting standards and is used by many large enterprises.
3. Visual Lease
Visual Lease is a lease accounting and management software solution that helps businesses manage their lease portfolios. It automates the process of lease accounting, provides real-time visibility and control over lease data, and generates accurate and timely financial reports. Visual Lease is designed to comply with lease accounting standards such as ASC 842 and IFRS 16, and provides businesses with a comprehensive tool to manage their lease portfolios.
4. CoStar Lease Accounting
CoStar Lease Accounting is a cloud-based lease accounting and management software solution that helps businesses manage their lease portfolios. It provides real-time visibility and control over lease data, automated lease accounting, and accurate financial reporting. CoStar Lease Accounting is designed to support ASC 842 and IFRS 16 lease accounting standards and is used by many large enterprises.
Choosing the Right Lease Accounting Platform
Lease accounting and management software is an essential tool for manufacturers who offer leasing as an option for customers to purchase their goods. It provides manufacturers with a comprehensive tool to manage their lease portfolios, automate the process of lease accounting, ensure compliance with lease accounting standards, and generate accurate and timely financial reports.
The value provided by purpose-built accounting software for leases includes compliance with lease accounting standards, enhanced visibility and control, improved financial reporting, reduced risk and errors, and improved customer experience. There are several lease accounting and management software solutions available in the market, each with unique features and benefits.
