Showing 1-20 of 49 products
Buildium is a cloud-based property management software that enables managers of residential and association properties to take control of every aspect of their business, whether in the office or fully remote, including online rent... Read more
Recent recommendations: 154 recommendations
SimplifyEm is a property management software designed to meet the requirements of small and mid-sized landlords and property managers. The web-based solution offers features like property accounting, tenant management, lease tracking,... Read more
Recent recommendations: 80 recommendations
RealPage is a cloud-based property management solution suitable for businesses of any size. Key features include accounting, budgeting, facilities maintenance, purchasing, document management and reporting. RealPage enables users... Read more
Recent recommendations: 24 recommendations
Rent Manager is a software system for both residential and commercial real estate entities with portfolios of any size. The accounting component of Rent Manager has full integration and includes everything from standard to advanced... Read more
Recent recommendations: 19 recommendations
SKYLINE from SS&C Technologies is a web-based property management and accounting solution suitable for small to midsize real-estate firms. Designed to handle an array or key operations, SKYLINE is capable of offering integrated tools... Read more
Recent recommendations: 12 recommendations
PayProp is a cloud-based property management solution designed to help Florida’s property managers collect, reconcile and distribute rental payments for their properties under management – on time and to the right recipients. Key... Read more
Recent recommendations: 10 recommendations
DomicoCloud is a true web-based management software launched directly from a browser. Manage tenants accounts, take payments, move customers in on any device from anywhere. Storage operators enjoy online reservation/lead capture capabilities,... Read more
Recent recommendations: 9 recommendations
Designed for small, medium and large property management companies, ApexLink is a comprehensive business management solution that covers all aspects of residential and commercial rental properties with integrated communication, marketing,... Read more
Recent recommendations: 9 recommendations
RentRedi is landlord-tenant software for landlords to easily manage their properties. RentRedi provides an all-in-one platform that enables landlords to collect mobile rent payments, send in-app notifications, prescreen tenants, send... Read more
Recent recommendations: 6 recommendations
RentMoola is a secure payment platform designed for residents to pay rent, access consumer credit , tenant insurance and security deposit alternatives. The platform accepts credit and debit cards, funds transfers, in-store cash payments,... Read more
Recent recommendations: 3 recommendations
Budgetrac is a cloud-based, comprehensive property management and accounting solution suitable for commercial properties such as industrial, office and retail. Budgetrac shares real-time information across organizations through role-based... Read more
Recent recommendations: 1 recommendations
MRI Affordable Housing is intuitive, web-based solution that automates compliance processes, drives efficiency with process and role-based dashboards, and provides better insight into investment and financial data. Multi-layered subsidies... Read more
Recent recommendations: 1 recommendations
Yardi Voyager is a cloud-based property management and accounting platform for both residential and commercial entities. This software product is designed for small portfolio real estate owners as well as larger portfolio enterprises... Read more
TenantCloud is a cloud-based property management system designed to meet the needs of landlords, property managers and real estate professionals. The system offers property management, tenant management, accounting management and marketing... Read more
Rentler is a property management solution designed to help landlords streamline the entire rental lifecycle, from property listing, tenant screenings and payments to maintenance and accounting operations. Managers can set up payment... Read more
PropertyMe is a cloud-based property management solution that helps businesses manage accounting, inspections and customer communications across real estate projects. Administrators can use the maintenance module to create tasks for... Read more
Console Cloud is a property management software designed to help real estate businesses and property owners manage multiple properties, inspection, task scheduling, communications, document storage and more. The creditor management... Read more
DoorLoop is a rental property management solution designed to help businesses streamline processes related to accounting, marketing, maintenance, tenant screening, online payments, work orders and more. Its built-in CRM and tenant... Read more
FRONTSTEPS solutions improve communities by streamlining communication from management offices to homeowners. FRONTSTEPS provides an inclusive system for communities including accounting, communications, day-to-day operations, and... Read more
Cozy is a property management solution designed to help landlords list properties, screen tenants and receive rental payments on a unified dashboard. The application enables proprietors to track expenses per property, assign them into... Read more
Keeping up with compliance requirements is a major challenge for businesses that lease out assets. These requirements have been further expanded with the introduction of forms FASB ASC 842 and IFRS 16 that have significantly increased the volume of financial data being reported and have made the lease accounting process more complex.
These developments make the already data-heavy and effort-intensive lease accounting function impossible to handle using spreadsheets and instead demands specialized tools.
This buyers guide explains the basics of tools known as lease accounting software and discusses things to know to enable informed purchase decisions.
Here’s what we’ll cover:
- What is lease accounting software?
- Common features of lease accounting software
- What type of buyer are you?
- Benefits of lease accounting software
- Key considerations when buying lease accounting software
What is lease accounting software?
Lease accounting software is a tool that helps lessors manage the financial and reporting aspects of their leased assets. The tool automates tasks such as lease portfolio management, budgeting, and amortization schedule management. It also helps maintain compliance with international and domestic accounting standards such as the FASB ASC 842 and IFRS 16.
The software can be used to manage lease accounting for individual assets or portfolios of assets.
Common features of lease accounting software
Lease accounting software includes features that help to reduce data entry, ensure compliance, and reduce costs. Here are the common features of the software:
|Asset management||Track and manage the legal, operational, and financial aspects of any type of leased asset such as real estate or equipment. Manage renewals and buyouts, terms and conditions, and servicing dates.|
|Amortization schedule management||Add amortization schedules, define the amortization period, calculate total lease charges, and lease duration. You can also view the opening asset and liability balance.|
|Critical date alerts||Track critical dates for term-end renewals, lease terminations, buyouts, and more.|
|Capitalization reporting||Import capital lease data such as periodic depreciation and salvage value from different geographical locations or business units and consolidate them into a single report.|
What type of buyer are you?
These are the two broad categories of lease accounting software buyers:
- Buyers looking for portfolio accounting: If you lease out assets of the same category having the same start and end dates, such as a fleet of ships, you can go for portfolio lease accounting software. In this type of tool, transactions are reported based on each lease contract. This simplifies accounting compliance as calculations can be made in aggregate and you don't have to account for each asset individually.
- Buyers looking for individual asset lease accounting: If you lease out different categories of assets that have different start and end dates, such as buildings or apartments, you can use a solution that supports lease accounting for individual assets. In this type of software, transactions are individually reported for each asset on a lease contract. As it involves diverse assets, making aggregate calculations, in this case, is a complex task.
Benefits of lease accounting software
By now you understand the core features of lease accounting software and its buyer types. Now let's look at some key benefits that will be of value to you:
- Reduce unnecessary costs: The tool offers features that help you track variable expenses to ensure you don't pay for unnecessary costs. The tool also helps track critical dates in the absence of which your organization may continue to pay for expired leases.
- Reduce errors: As opposed to spreadsheet-based lease accounting, the software automatically keeps track of the required financial fields to ensure accurate calculations. Data can also be extracted from any chosen field and populated directly into the formulae, which further increases accuracy.
- Improve compliance: Lease accounting software helps simplify the transition to new accounting standards and helps comply with evolving regulations by allowing users to update lease disclosure regularly. This helps ensure the accuracy and relevance of lease data as users can be sure that the data is current.
Key considerations when buying lease accounting software
As the last step to purchasing lease accounting software, you need to keep a few additional things in mind:
- Integration with ERP tools: It's advisable to check if the software supports integration with enterprise resource planning (ERP) systems. In case of a change in lease terms and conditions or changes in user decisions because of termination or extension, lease liabilities and right-of-use assets can go through multiple remeasurements. The impact of these changes reflects on the balance sheet and if regulations change, it will be difficult and risky to carry out a last-minute customization.
- Deployment: You will need to consider the deployment options available based on your business requirements. If you select on-premise software, you will need to evaluate the complexity involved in installing, maintaining, upgrading, and backing up the software. You will also need to consider if your IT resources are sufficient for deploying the software. If you select a cloud-based solution, you will need to evaluate the vendor based on their data storage capabilities, security policies, and the professional services offered.
- Reviews: Apart from the functionality your chosen software offers, it's advisable to check vendor reviews and choose a vendor with a good track record of offering help with implementations, data management, and customer support. You should also check if the vendor is financially stable or backed by a large firm and can support long-term data management and operations.
If you wish to further understand the features and benefits of lease accounting software, you may fill out this form for an obligation-free consultation. Our advisors will understand your requirements and guide you in shortlisting the options most suitable for your business.
Note: The applications selected in this article are examples to show a feature in context and are not intended as endorsements or recommendations. They have been obtained from sources believed to be reliable at the time of publication.