Lease Accounting Software

Table of Contents (Quick Links)



Due to the significant changes in lease accounting standards, many businesses are finding themselves in need of lease accounting software. This type of software ensures accounting compliance, tracks all lease-related expenses, and helps businesses avoid costly mistakes in lease reporting. In this article, we will go over who uses this software, benefits, features, and some examples of relevant software products.

Who Uses Lease Accounting Software?

Lease accounting software can be used by all types of businesses that lease equipment, services, or real estate. This software is particularly useful for businesses with multiple leases, global corporations, and those who need to comply with the new lease accounting standards laid out by FASB and IFRS.

Benefits of Lease Accounting Software:

Increase Accuracy and Improve Compliance: Lease accounting software ensures accuracy in lease accounting and compliance with accounting standards. It can minimize errors and misreporting, reducing the risk of penalties and fines. In addition, it provides transparency and audit trails that help companies prevent fraud in their lease accounting reports.

Automated Lease Management: With lease accounting software, companies can centralize all lease data in one place. This information includes critical dates, costs, and liabilities. The software can generate lease payments, calculate residual values, and automate lease renewals. Additionally, automated lease management helps save time by keeping track of critical dates, renewals, and expirations.

Better Decision Making: Accurate lease accounting data can help businesses make better decisions about lease renewals, acquisitions, and financing. Lease accounting software provides real-time data and alarms to support decision making at various levels of management. The software’s analytics and predictive modeling tools help companies evaluate the impact of their leasing decisions on financial statements, cash flow, and performance.

Features of Lease Accounting Software:

Some common features of lease accounting software are:

Lease Data Management: The software enables businesses to monitor a vast range of lease types and manage lease data. Users can input lease agreements, account for adjustments and corrections and track payments, expenses, and reimbursements.

Expense Management: This feature helps users track lease expenses, associated penalties, and other costs related to each lease separately. The system calculates and reports expenses and liabilities associated with each lease.

Reporting and Compliance: This feature helps companies comply with lease accounting standards. Businesses can generate various reports, such as balance sheets schedules, expense summaries, reminders, and alarms. These reports enable auditors, managers, and lessees to track cash flow, liabilities, and lease payments throughout the year.

Examples of Lease Accounting Software:

Below are some popular examples of Lease Accounting Software:

Lease Accelerator ( Lease Accelerator is cloud-based software that helps businesses manage the complete lifecycle of their leases. The software automates lease accounting, tracks assets, and provides lease accounting compliance reporting. It provides easy-to-use dashboards for real-time access to lease data and reporting.

Nakisa ( Nakisa is an enterprise-wide lease accounting and compliance platform. The software offers several features, such as lease accounting, centralized data collection, lease administration, and management reporting. It also includes ad hoc reporting and workflow automation.

ProLease ( ProLease is lease management and lease accounting software that enables organizations to manage and account for their real estate leases efficiently. It provides centralized data management, compliance reporting, and financial reporting, including GAAP, IFRS, and FASB. The software also automates lease payment processing.

Visual Lease ( Visual Lease is a cloud-based lease accounting and lease management software that helps companies remain GAAP and IFRS compliant. The software provides real-time lease information visibility, automated lease accounting, and reporting. Its features include a lease database, automatic contract generation, and lease payment processing.

CoStar Lease Accounting ( CoStar Lease Accounting is an accounting and lease management software used by companies to comply with accounting standards. It collects lease data, calculates payments, calculates expenses and liabilities, and generates reports. The software can also predict financial and accounting impacts of renewals, extensions, and new leases.

Drawbacks and Limitations of Lease Accounting Software:

One significant drawback of lease accounting software is that it takes time and effort to correctly input lease data and train personnel. Its implementation will be challenging for companies with antiquated accounting systems and for those whose leases are highly complex. Additionally, the cost of implementing and maintaining the software can be prohibitive for small businesses.


Lease accounting software is essential for businesses with a vast range of leases types and for global organizations that need to comply with lease accounting regulations. The software offers many benefits, including accurate accounting and lease data management, compliance reporting, automated lease management, and improved decision-making. Moreover, the software helps organizations simplify complex lease management processes, avoid compliance discrepancies, and optimize lease portfolios. Although some businesses may encounter implementation constraints and potential software limitations, leasing accounting software is a valuable investment in the long run.