Lease Accounting Standards – Changes and Effect beyond Balance Sheet

Posted by Odessa on May 16th, 2019

The new lease accounting standard can change the manner in which investors can get a glimpse of the company’s financial overview. Although with the aid of leasing tracking software and such tools, the leasing industry has evolved for the better, there is more to just the balance sheet that you must know about. In this short write-up, let us find out more about the crucial elements related to Lease Portfolio Management.

Key Aspects of Leasing Accounting Standards

Firstly, if you are engaged in the leasing business, to keep pace with the changes related to the accounting norms, you must ‘radically’ change the manner in which accounting is done in your company. The same applies to all areas of leasing including leasing portfolio management.

Secondly, all these companies will have to report all cases of leasing in the balance sheets as liabilities as well as assets. It contrasts the practice wherein finance and capital leases were mentioned in the balance sheets all these years. So, the changes are not as a replacement of the existing standards but in addition to them.

Why Invest in Leasing Tracking Software?

Regardless of whether you are dealing with fleet management or equipment finance, the role of lease tracking software cannot be undermined. These tools not only assist you will be collating all data into digital form but also makes it convenient to access the data whenever you want even while you are on the move.

Most importantly, if you are using these tools for lease portfolio management, you will be able to reduce operating costs remarkably. This is usually done by keeping track of the expenses and monitoring them so that you can curtail the expenses in areas that you have to address.

However, we at Odessa, understand well the nuances of the leasing industry. We have helped clients derive maximum benefits by offering the best possible solutions at cost-effective rates.

Our well-versed team of skilled professionals is available round the clock to assist you and your company with everything that you want to know in leasing related to fleet management and equipment finance. Explore more of our sought-after services.