Why is lease accounting more challenging for private equity firms?

Lease accounting is more complex in private equity because each portfolio company uses different systems, policies, and reporting processes. This creates consolidation difficulties, increases compliance risks, and slows ASC 842 or IFRS 16 reporting.

How can private equity firms improve multi-entity lease consolidation?

Private equity firms can improve multi-entity consolidation by centralizing lease data into a single platform that standardizes reporting, validates entries automatically, and provides real-time visibility across all subsidiaries. This removes manual reconciliations and reduces errors.

What are the risks of managing lease accounting with spreadsheets?

Using spreadsheets increases the risk of data inconsistencies, version control issues, delayed closes, inaccurate calculations, and audit findings. It slows decision-making and makes ASC 842 compliance harder to maintain across a private equity portfolio.

How does centralized lease accounting help with ASC 842 compliance?

Centralized lease accounting systems enforce consistent accounting policies across subsidiaries, automate ROU asset and liability calculations, and maintain accurate journal entries. This shortens close cycles and provides audit-ready documentation.

What features should private equity firms look for in a lease accounting system?

Private equity firms should look for features such as multi-entity capabilities, automated calculations, real-time consolidated reporting, ASC 842/IFRS 16 compliance tools, complete audit trails, ERP integrations, and flexible control levels for subsidiaries and the parent firm.

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Lease Accounting

Excel versus Black Owl Lease Accounting

Greg Kautz, CPA, CMA, CEO February 23, 2021

One thing we hear from prospective clients who use Excel to perform their lease accounting is

Lease Accounting

Excel versus Black Owl Lease Accounting

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