Would you like for your staff or team to spend less time doing administrative work, related to lease accounting? Does it seem beneficial to allocate more resources towards projects and duties that add value instead of mundane day-to-day tasks and calculations? If so, then lease management software should be on your radar. This computer program can cut the time it takes to calculate lease liability, amongst many other benefits. In this article, we’re going to focus on a very particular issue – how dedicated software solutions can help with lease liability calculation!
Automatic adjustments for lease liability calculation
Dedicated software solutions are capable of doing various calculations automatically. A lot of times, you can see companies trying to do various estimations, outline and forecast various figures. However, it takes a lot of time for them because they are using outdated, primitive, or not fully functional tools. One area which can create a lot of challenges for accountants or administrative staff is calculating lease liability.
Change the inputs within the interface and the whole forecast can change with it. Dedicated software solutions are packed with advanced, top-of-the-range, highly capable templates and calculators which are already adapted to suit your needs within the standards like AASB 16, IFRS 16 or ASC 842, etc.
Export/import data at will
As we all know, just doing lease liability calculation on paper isn’t enough. These figures and reports can and likely need to be updated continuously. Furthermore, every once in a while, the staff needs to generate a report (for example, for the quarterly or yearly fiscal report). You can’t just exclude lease liability figures, which means that simple data import and export becomes very important. Dedicated software solutions can read and output Excel and different format files to simplify the job for your staff.
The business world of today is always changing. In the world of leasing and especially for lease liabilities accounting, these changes need to be reflected in your books. Re-evaluating the values of assets in accordance with foreign currency, doing an audit to make sure your records are up-to-date, and crunching down numbers with the most accuracy isn’t just mandatory, it can help out your company. If your staff has the tools for re-measurement at their disposal, they can work with books to take more deductible losses.
Accounting for variable lease payments
This is a very precise problem that you can solve. Whether you have a large portfolio of operating lease liabilities or one that’s constantly expanding, new accounting standards make sure that variable lease payments are excluded from the final calculation with the exception of being tied to index or interest rates.
Software solutions like SOFT4 Lessee have built-in features to account for variable lease payments and factor in index or rates at appropriate dates, re-calculate on demand, etc. Using this data, you can adjust pricing and optimize your service plans.