By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Business to markBusiness to markBusiness to mark
  • Business
    • Automotive
    BusinessShow More
    Blog page images 3 21
    Exploring the World of Equity Crowdfunding
    September 30, 2023
    The Tech-Driven Evolution of Video Creation: A Look at Social Media's Role in New Trends
    The Tech-Driven Evolution of Video Creation: A Look at Social Media’s Role in New Trends
    September 30, 2023
    gpt44x amazon btm 1
    Best deals on GPT44X Amazon?
    September 29, 2023
    types of employee benefits and perks 2060433 Final edit 60cedb43c4014fdeb51aa3cd3c25f027
    What are Some of the Best Perks for Employees to Consider as a Business?
    September 29, 2023
    images?q=tbn:ANd9GcTEb8vORTNlWYiPw6JWdq8RjaOy7WYepPpuHQ&usqp=CAU
    Personalize Your Nintendo Switch and Phones with Pokemon Stickers and Cases from Pokemon Faction
    September 29, 2023
  • Tech Software
    Tech SoftwareShow More
    ffffffffffggggggggggggggggg
    Google Sheets vs Excel: A Comprehensive Face-Off
    September 29, 2023
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    Best YouTube to MP3 Converters
    September 29, 2023
    20230929 153824
    Receipt Printers in Small Businesses: Cost-Effective Solutions for Growth
    September 29, 2023
    20230929 153732
    The Ultimate Guide to Choosing the Right Shipping Label Printer
    September 29, 2023
    20230929 153705
    Comparing Thermal Printing to Traditional Labeling Methods
    September 29, 2023
  • Entertainment News
    Entertainment NewsShow More
    images 2023 09 29T170954.805
    Breaking News: The Early Years of Zanan Ahmad – A British Author and Influencer Who is Changing the Game
    September 29, 2023
    images 2023 09 29T012512.389
    The Multifaceted Talent – Model, Actress, and Photographer Extraordinaire
    September 28, 2023
    IMG 20230928 WA0030
    The Application of Drones in News Reporting
    September 28, 2023
    images 13
    What is ilikecomox detailed overview
    September 27, 2023
    image
    Story of Staci Keanan – Biography
    September 26, 2023
  • Home Improvement
    Home ImprovementShow More
    3 Perks of self storage during your home renovation
    The Unseen Perks of Self Storage in Home Remodeling
    September 30, 2023
    How Giraffe Tools Make Backyard Cleaning a Breeze
    How Giraffe Tools Make Backyard Cleaning a Breeze
    September 28, 2023
    load image 2
    What Is the Best Garage Floor Coating in 2023?
    September 28, 2023
    images 2023 09 28T175126.381
    Which is better for your dining area—reclaimed dining tables or regular tables?
    September 28, 2023
    Home Decor Inspiration and Tips
    Elevate Your Space: Home Decor Inspiration and Tips
    September 28, 2023
  • Sports Gaming
    • LifeStyle
    Sports GamingShow More
    Futbolear
    Futbolear: The Blend of Football and Theater
    September 30, 2023
    images 2023 09 29T201915.383
    From Console to PC: Exploring the Evolution of Gaming Softwares
    September 29, 2023
    goal on computer ball net stadium
    The Popularity of Sports Betting in Iran
    September 27, 2023
    Renowned Iranian influencers in the online gambling industry Tycoonstory
    Online Casinos Taking Over the Gambling Industry In Iran
    September 27, 2023
    fafsafasf
    Hotbet Site – An Iranian Online Casino
    September 27, 2023
  • Submit Posts
  • Contact Us
Reading: Understanding the Complexities of Lease Management
Share
Sign In
Aa
Business to markBusiness to mark
Aa
Search
  • Business
    • Automotive
  • Tech Software
  • Entertainment News
  • Home Improvement
  • Sports Gaming
    • LifeStyle
  • Submit Posts
  • Contact Us
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Business to mark > Blog > Understanding the Complexities of Lease Management

Understanding the Complexities of Lease Management

Admin
Last updated: 2022/03/25 at 5:25 PM
Admin
Share
5 Min Read
Nfeu3XLXar
SHARE

Lease management is a complex area of the property and financial management side of a business. Thankfully the task is made easier by lease management software that is available online. It will take care of the figures, the deadlines, and the accounting standards.

Contents
What is the Process of Leasing?What is Lease Management Accounting?The functions of Lease Accounting SoftwareAccounting Standards

When it comes to managing leases, we ought to not just know that software exists but also what it can do for us. We shall explore these functions so that we know how much easier it could be for our business.

 

What is the Process of Leasing?

The leasing process begins when the lessee enters a leasing contract with a lessor. A lessee will approach manufacturers and suppliers to gather the details about an asset in terms of its specifications, design, installation, price, warranty, and service.

Leasing can relate to real estate, equipment, or vehicles. A portfolio of several of any of these can start to become unmanageable if a close eye is not kept on when payments are due and when leases need to be reported. This is where software can prove extremely useful to businesses with even small portfolios to run. It is not just the income to account for but the payments that are made for the upkeep of properties or machinery. Those leasing an asset will expect it to be well maintained.

 

What is Lease Management Accounting?

Lease management accounting is often referred to as lease administration. It is the execution of tasks daily that relate to what is contained within a company’s lease portfolio. It is not easy to manage because there is no one approach to lease management. At the same time, a company needs to have direction with it and cannot simply record its transactions in an ad hoc way.

The accountancy side of leasing involves document management (documents need to be kept for tax purposes), reporting (there will be audits to pass), and many other types of administration that will involve coordination between stakeholders.

 

The functions of Lease Accounting Software

Lease accounting software exists to ensure easy compliance in respect of the key accounting standards. These are ASC 842, IFRS 16, and GASB 87. Everyone involved in leases will need to be familiar with these and the recent changes that give more transparency to leases. They are now, for instance, shown more transparently on a balance sheet.

Advanced controls within the software will mean that there is enterprise compliance and also administration for real estate.

Compliance is the key and software makes it much easier to records things, keep them up-to-date, never miss deadlines, and be reporting figures in this new way that will not mislead lenders or investors viewing the accounts.

The point is that compliance needs to be automatic and not something that has to be worked hard at when software can effortlessly cope with the task.

 

Accounting Standards

We cannot complete this article on accounting standards without talking about these key accounting standards that relate specifically to leases. Here is a quick explanation of the main ones:

  • ASC 842 – increases the visibility of leasing obligation in respect of public and private companies.
  • IFRS 16 – is concerned with lease components of a contract.
  • GASB 87 – is taking into account the liability of leases and the intangible assets the lessee has a right to use.

Before ASC 842, the majority of leases would not be included on the balance sheet that was supposed to be a true reflection of the activities of a business.

With IFRS 16, it is now only short-term leases of 12 months and less that do not get included on a balance sheet.

GASB 87 replaces the current capital and operating lease categories with just a single model that is based on the idea that leases are a way of financing the correct use of an asset.

 

Lease management is complex, but those with accountancy skills and the right software can make light work of the process and always be ahead of the game. This is when it comes to keeping up with reporting leases in a way that will comply 100% with the latest accounting standards.

Share This Article
Facebook Twitter Copy Link Print
Share

Latest News

Blog page images 3 21
Exploring the World of Equity Crowdfunding
Business September 30, 2023
The Tech-Driven Evolution of Video Creation: A Look at Social Media's Role in New Trends
The Tech-Driven Evolution of Video Creation: A Look at Social Media’s Role in New Trends
Business September 30, 2023
Is kisskh.me Down
What Happened to Is kisskh.me Down Websites, Why Is It Not Working?
Blogs September 30, 2023
mysnhu
What is mySNHU?
Education September 30, 2023
Futbolear
Futbolear: The Blend of Football and Theater
Sports Gaming September 30, 2023
3 Perks of self storage during your home renovation
The Unseen Perks of Self Storage in Home Remodeling
Home Improvement September 30, 2023
gpt44x amazon btm 1
Best deals on GPT44X Amazon?
Business September 29, 2023
types of employee benefits and perks 2060433 Final edit 60cedb43c4014fdeb51aa3cd3c25f027
What are Some of the Best Perks for Employees to Consider as a Business?
Business September 29, 2023

Contact us

Thanks for contact us: Email: businesstomark@gmail.com

Sponser

1 1
Top 5 Sites to Buy Spotify Plays for Monetization
Sports Gaming Sponsor

Popular

images?q=tbn:ANd9GcSW6Vd X689uyOGAmeWH6U2D22IhAjnOE40nw&usqp=CAU
The Potential of Payment Orchestration: A Comprehensive Guide to Enhance Payment Conversions
Tech Software
superstealth slate grey
A Breath Of Fresh Air: How Evaporative Cooling Is Revolutionizing Modern HVAC Systems
Home Improvement
Business to markBusiness to mark
Follow US
© CEO-Zahid Butt ( +92-3157325922)
  • Business
  • Tech Software
  • Entertainment News
  • Home Improvement
  • Sports Gaming
  • Submit Posts
  • Contact Us
Welcome Back!

Sign in to your account

Lost your password?