Implementing the new lease standard is complex if you try to do it in spreadsheets, even for organizations with a few leases. Beyond the complexity and time-consuming nature of implementing the new standard, setting it up manually introduces the risk of inaccuracies and wasted time for years to come. This blog will examine the advantages of using software instead.

What are the Advantages of Lease Accounting Software?

1. Simplifies the complex

There are so many intricacies to navigate within the new lease standard—reviewing and classifying leases, policy elections, initial journal entries, footnote disclosures, and more. Even for a CPA, learning all of the complexities of the new standard is overwhelming.

An advantage of accounting standards software like LeaseCrunch is that it automates many of these processes and offers wizards and tooltips to help with decisions like classifying leases properly and making policy elections.

2. Saves enormous amounts of time

Just one organization implementing the new standard is extremely time-consuming—if you’re helping all your clients with their implementations, how much is that eating away at your margins? Does your firm have the resources to take on all that extra work?

Using software greatly reduces the amount of time needed for each implementation because accurate calculations are done for you. Another one of the benefits of accounting standards software is that it improves audit efficiency, with testing focused on data inputs because you can rely on the outputs and calculations.

3. Ensures accuracy & reduces risk

One of the biggest risks of implementing the new lease standard by using spreadsheets is the possibility of getting errors with the inputs, formulas, macros, access control, version control, etc. Just one error can result in incorrect journal entries and footnote disclosures, and there are no internal controls in a spreadsheet. It’s also important to keep in mind that spreadsheets have no security assurance.

Unlike traditional spreadsheets, the advantages of lease accounting software include functionality to catch input errors and technology that keeps information secure.

4. Impresses clients

Implementing the new lease standard will be frustrating for your clients. Providing them with a great software tool to simplify the process will add value to your client relationships. Plus LeaseCrunch can be branded to your firm and you can easily use it with all of your clients, and each one can have the level of collaboration and control they desire.

Read one bank’s experience implementing the new lease standard using LeaseCrunch® in this case study.

LeaseCrunch for New Lease Accounting Standards

We have good news! As you can see, using spreadsheets to implement the new lease standard by hand is complicated. Those who are tired of errors and time-consuming spreadsheets can get spreadsheets in Excel with the push of a button from LeaseCrunch.

LeaseCrunch’s software was named one of the top new products of 2022 for a reason: It can automatically create spreadsheets that download into Excel so you don’t have to worry about calculating and maintaining complicated formulas and spreadsheets yourself.

But our software does more than just that. LeaseCrunch’s software:

• Has automated quantitative footnote disclosures that generate footnotes fast
• Provides classification and lease term information in easy-to-digest tips
• Offers simplified policy election templates for FASB, GASB, and IFRS

And much more. To see the full suite of capabilities, and get a glimpse into how easy performing lease accounting can be, set up a demo today.

FAQs

What are the advantages of accounting standards?

The advantages of accounting standards include, first and foremost, the regulation of accounting practices in a way that obligates entities to document their financials in a clear and transparent way. This is to the benefit of CPAs and other parties that might be interested in knowing a company’s financial wellbeing for investment or legal purposes.

What are the disadvantages of accounting standards?

Some of the disadvantages of accounting standards include the fact that, despite being important, lease accounting standards can be complicated and difficult to follow. However, that’s where a tool like lease accounting software can prove advantageous.

Read one bank’s experience implementing the new lease standard using LeaseCrunch^® in this case study.