The new lease accounting standards (ASC 842, IFRS 16, GASB 87) are not just a one-and-done disclosure.
They usher in a new approach to accounting that includes an ongoing, cross-departmental effort – and, a
much higher level of scrutiny.
Lease accounting is interdependent on lease administration. The new standard(s) require collecting
leases from across your organization and staying on top of them as they change throughout the year. It is an
ongoing effort that requires dedicated people (often cross-departmentally in IT, procurement, legal, etc.) with
strict attention to detail.
To do so effectively, you need to implement a sustainable process and reliable technology. And though the
lease accounting market offers a wide selection of software solutions to streamline compliance efforts, each
tool is not one-size fits all. Many of the products on the market fail to address the importance of long-term
lease administration throughout the financial process.
It is not possible to maintain lease accounting compliance with a large lease portfolio without accompanying
technology that supports both lease accounting and lease administration. Here’s why.
Why do you need both?