If you are still working with Excel spreadsheets or any simple and unproductive lease accounting solution until today, it is a sign for you to move forward. Start using Soft4Lessee lease accounting software and feel the difference in efficiency, speed and coordination of your company. Still hesitating? In this post I will highlight a few benefits this solution brings to your business.

Lease accounting software reduces time spent on administrative work

Save time of your employees with trusted lease accounting software, which lets you to manage multiple lease agreements with a large volume of data efficiently and easily. Lease accounting solution provides tools for lease data import and export, and prevents from human errors in the implementation process. Importing large quantities of data is time consuming, but using lease accounting software and one of the following methods (or combination of methods): webservice API, Excel files, XML files you can import lease agreements, leased asset details and lease payment schedules. The interface support upload of new leases as well as modifications to existing leases (e.g., you upload a new payment schedule received from the lessor after re-pricing/indexation).

When you import updated lease data, the system will indicate fields, which has changed. Before you accept the data file, you can review and approve changes. The system will compare incoming leases to lease data currently in the system and highlight the changes.

Lease management accounting tools for smooth calculations

Lease accounting solution comes with a set of lease management accounting tools that make all calculations easier and faster. Using it, you can calculate both lease liability and right of use asset. Lease liability is part of presentations required by AASB 16. New management report shows analysis of lease liability in more detail, including trend analysis – new liabilities added in period, plus interest accrual, less lease payments made, plus or minus lease modifications. Based on the given parameters, the system calculates lease liability as the present value of lease payments, and the present value of amounts due at the end of the lease term, considering purchase or termination options.

On the other hand, lease management accounting tools calculate RoU Asset value considering lease liability, costs before lease commencement and the expected cost of asset return. If the lease liability is re-assessed, the RoU asset value changes accordingly.

AASB 16 software helps to meet AASB 16 compliance

AASB 16 came into effect on 1 January 2019 and made big difference for many companies worldwide. It introduces a single lessee accounting model requiring lessees to recognize all leases on the balance sheet, except for short-term leases and leases of low-value assets. In order to stay compliant with the new standard, you need to trust AASB 16 software, which helps in every step of the way.

Using AASB 16 software, you will get ready reports, which you need for your financial reporting and prepare additional information for AASB 16 disclosures. For example, statement of financial position and profit and loss statement are readily available from Soft4Lessee as an excel report and/or data file of G/L transactions for uploading to other systems. It surely saves your time and prevents company from possibility of any human mistakes.