Best lease accounting software to meet complex recording and reporting requirements


Lease accounting can easily become an administrative and logistical nightmare for many. Companies tend to underestimate the work involved in preparing documents that comply with the FASB and other standards. Correct revenue recognition and reporting is especially difficult for many organizations, and there are also those who don’t even know where their leases are.

“Maybe they’re using spreadsheets for their asset accounting and don’t know they’ll have to consider modifying their software to do that accounting. And maybe they haven’t taken into account the effect that the new liabilities on their balance sheet will have on their debt commitments with lenders, ”Ken Tysiac of the Journal of Accountancy wrote as he discussed the risks. delay in accounting for leases.

This greatly helps businesses use the right tools. Below is an overview of five of the leading lease accounting solutions designed for businesses of all sizes, but particularly suitable for large organizations that handle a lot of data and contracts.

Trullion

An automated “one stop source of truth” is how Trullion rental software branding works. It might sound a bit vague, but it’s a good catch-all for what the software does. This AI-powered rental accounting solution ensures confidence in an organization’s financial data by unifying unstructured and structured accounting information.

Trullion makes it easy to collect all relevant information from document volumes without requiring human evaluation. Thanks to a powerful optical character recognition system supported by artificial intelligence, various information including payments, dates, conditions and options are easily extracted from PDF and Excel documents to be recorded in accurate accounting entries compliant. to ASC 842, IFRS 16 or GASB 87 standards.

The resulting documents or reports are easily auditable and easily usable by anyone who wishes to review them. Because these documents can be produced quickly, organizations can expect real-time financial visibility and transparency to ensure that business decisions are guided by up-to-date information and that analyzes and projections are based on no only on relevant details, but also on the last details.

Trullion makes lease accounting considerably easier and simpler compared to doing everything manually and requiring more people to read documents and encode data into digital records. It may be a relatively new player in the market, but it stands out for the ease and convenience it brings, including incorporating AI and machine learning. It is already in use by a number of global brands including Bell, Nokia HMD, KPMG and Workrise.

Lease request

LeaseQuery is another rental accounting solution designed to ensure compliance with ASC 842, IFRS and GASB. Like Trullion, it aims to simplify complex accounting and ensure fast turnaround time for recording, analysis and reporting. It automates the process of transforming spreadsheets into standards-compliant accounting records available in secure cloud storage.

What makes LeaseQuery different from Trullion, however, is that it does not come with OCR and AI technology to extract relevant information from PDF documents. It’s a SaaS platform designed to make lease accounting efficient, but it could use AI and document scanning functionality to provide an even better experience.

Yet LeaseQuery is one of the most trusted rental accounting software options out there today. Its more than 2000 users imply a high level of reliability. It can reduce lease accounting costs with its useful critical alerts (for reporting and compliance deadlines), robust reporting tools and high level of accuracy. Since it is a cloud-based solution, it allows secure access to data and reports anytime and anywhere. It is a suitable tool for organizations looking to centralize their rental accounting operations not only between departments, but also between different geographic locations.

Visual lease

Visual Lease is one of the few accounting and lease management solutions to offer advanced functionalities similar to those offered by Trullion. Designed for ease of use, it facilitates compliance with ASC 842, IFRS 16 and GASB 87. This practitioner-designed lease administration and accounting software offers a complete lease optimization solution with powerful tools and additional expert services to deal with complex scenarios.

Visual Lease promises next-generation visibility and control as it streamlines workflows between systems and leverages rental data available in different parts and processes of an organization. It has an integration hub that makes it easy to get and export rental data wherever it’s needed, eliminating documentation and duplicate tasks, and saving time and resources. It is also designed with a centralized search platform that makes it easy to capture and track a multitude of unique rental data items.

Additionally, Visual Lease has a convenient rental history feature that reliably tracks all changes to a lease, ensuring data integrity and auditability. It also provides a robust reporting system that allows users to configure their tailor-made ad-hoc reports or choose from a library of templates containing over a hundred standard reports suitable for different scenarios.

AMTdirect

This lease administration and accounting software may have been acquired by MRI Software, but AMTdirect remains one of the best choices when it comes to accounting for lease transactions. In line with what other similar software tools are designed, it aims to simplify accounting procedures and management of the lease portfolio.

It covers not only real estate, but also equipment leases, ensuring that important details such as key dates and terms of the agreement are properly recorded and referenced. It guarantees a huge improvement over manual lease management, as it uses automation and emphasizes centralization of operations for better oversight and control.

In addition, AMTdirect has regulatory compliance in mind. The automation aspect carefully takes into account IFRS 16 and ASC 842. It can handle all types and classifications of leases. He proposes a CAM reconciliation via his function of manager of operating expenses. It is designed to quickly calculate disclosures and amortization schedules while simplifying the processing of accounts receivable and payable.

Other notable features of AMTdirect include the ability to configure an approval hierarchy to track lease changes, automation of lease payments for better tracking of sales and percentages, and the ability to schedule personalized reports that can be sent automatically to stakeholders. It can generate over 250 reports for key stakeholders.

CoStar Real Estate Manager

CoStar Real Estate Manager is touted as “the only commercial real estate platform designed for businesses and retailers that integrates market data, research analysis and management software in one place”. It unifies different aspects of property management, including accounting and lease administration.

This solution enables property managers to achieve better results using a variety of tools, including rental and sale compositions, rental analysis and modeling, portfolio planning, and transaction management. It also has powerful lease analysis and modeling features that facilitate an organized way to compare and assess the financial implications of different lease proposals from corporate and owner retail tenants.

Additionally, CoStar Real Estate Manager also dramatically facilitates lease accounting compliance by integrating data flows into critical business systems. This solution is designed to simplify the process of compliance with ASC 842 and IFRS 16.

CoStar Real Estate Manager enables rapid calculation of the balance sheet impact of certain rental decisions while speeding up the process of entering monthly journal entries and reporting accurate financial disclosures. It doesn’t have the AI ​​and machine learning bells and whistles of other more advanced solutions, but it’s reliable enough to be considered one of the main options.

Choose the best solution for your needs

Different organizations have different needs and preferences when it comes to accounting and lease administration. Generally, it is advisable to choose a specialized software solution that focuses on accounting and lease management. However, it is not a bad idea to use multi-functional platforms whose other features are also useful for the record keeping and management needs of an organization.

The five rental accounting software tools above represent the best options available today. They offer a wide range of functions and enjoy a high reputation among users. Choosing the right one means finding the one that perfectly suits an organization’s needs in terms of usability and integration with other existing software tools.

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