Lease Accounting Software: Cut Costs & Streamline Workflows
When companies first transitioned to the new lease accounting standards (ASC 842 and IFRS 16) in 2019, the available lease accounting software solutions were limited. Businesses urgently needed compliance solutions, leading to significant upfront investments, often without considering long-term functionality and efficiency.
Today, many finance teams find themselves dealing with mounting frustrations. Despite large initial investments, annual software fees continue to climb steadily, often unexpectedly. Worse yet, many of these solutions still lack crucial features, negatively impacting financial operations and audit readiness.
Common challenges include:
- Rising Costs of Lease Accounting Software: Many solutions adopted early on have since imposed significant fee hikes, causing unexpected increases in total cost of ownership.
- Lack of Lessor Accounting Features: Solutions initially chosen for basic compliance frequently overlook lessor accounting, leaving finance teams dependent on inefficient manual workarounds and prone to costly errors.
- Inefficient Handling of Lease Modifications: Lease modifications are common in business, yet many early systems lack intuitive, robust workflows to handle these efficiently, creating substantial extra work and risk.
- Incomplete and Inaccurate Reporting: CFOs and finance leaders routinely report frustrations with incomplete, inconsistent reporting capabilities, complicating audits, extending month-end closes, and increasing internal workloads.
Fortunately, the landscape for lease accounting software has evolved significantly. Newer solutions have emerged, designed specifically to address these gaps identified after the initial adoption rush. Modern systems incorporate essential functionality like full lessor accounting, automated and intuitive lease modifications, and accurate, audit-ready reporting.
Switching to an advanced lease accounting solution now can yield significant financial and operational savings by:
- Lowering annual software costs substantially.
- Reducing manual journal entries, freeing up valuable staff time.
- Streamlining the lease modifications process with intuitive, powerful workflows.
- Providing comprehensive, accurate reports for auditors and management.
- Supporting full lessor accounting capabilities seamlessly, eliminating costly manual interventions.
Your business deserves a lease accounting software solution that reduces costs, minimizes risks, and boosts operational efficiency. Now is the ideal moment to reassess your current platform.
Ready to take the next step? Black Owl offers complete and comprehensive lease accounting software designed by accountants, for accountants. Schedule a personalized demonstration today to see firsthand how our intuitive solutions for lease modifications and lessor accounting can transform your lease accounting process, improve your financial efficiency, and significantly reduce your software spend.
