By Joel Hess on September 26, 2022 at 9:00 AM
Implementing the new lease standard is complex, particularly for organizations with many leases. Beyond the complexity and time-consuming nature of implementing the new standard, setting it up manually with spreadsheets is also extremely risky. This blog will examine the advantages of using software instead.
Simplifies the complex
There are so many intricacies to navigate within the new lease standard: auditing and classifying leases, policy elections, initial journal entries, footnote disclosures and more. Even for a CPA, learning all of these complexities of the new standard is overwhelming.
Software like LeaseCrunch® automates many of these processes and offers wizards and tooltips to help with decisions like classifying leases properly or making policy elections.
Saves enormous amounts of time
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 the workflow and calculations are done for you. It also improves audit efficiency, with testing focused on data inputs because you can rely on the outputs and calculations.
Ensures accuracy & reduces risk
One of the biggest risks of implementing the new lease standard using spreadsheets is the possibility of errors with the inputs, formulas, macros, access control, version control and more. One error can result in incorrect journal entries, and there are no internal accuracy controls in a spreadsheet like software has. It’s also important to keep in mind that spreadsheets have no security assurance like software.
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.