EZLease is all about simplifying your lease accounting as much as it is about fast compliance with ASC 842, GASB 87, and IFRS 16.

In this space, we shall examine just how EZLease for lease accounting makes this kind of accounting easier and talk about some of the compliances that the software will take care of and help you with.

About EZLease Accounting Software

EZLease makes things easier by storing all the documents in one place. It is capable of accounting for every lease transaction, whether it relates to a lessee or lessor. Then, it can consolidate figures at the end of the month and produce a balance sheet and income statements relating to leasing activities. EZLease consists of an easy-to-manage database and can, with ease, handle reporting and disclosures. The software is good at tracking things like contingent rents, reminding about notice dates, and dealing with lease extensions. The database will have in it both historic and current data to view and so is a useful tool for staff and management, who can then quickly and easily find the peace of information that they need. It is effective to use day-to-day and then invaluable when month-end and audit reports are required.

Advantages of EZLease Accounting

To state its advantages, we can say that EZLease accounting software exists to make sure that you never miss a deadline concerning a lease and that things are made easier when it comes to reporting and audits.

EZLease accounting is fast to set up and capable of dealing with all the transactions related to leasing.

Compliance with the accounting standards is made much easier when you have the accounting tools of EZLease at your disposal. It is about better management when it comes to leases. It makes for an efficient leasing company that can always please its customers.

EZLease is an accounting tool that automates tasks. For example, lease portfolio management, amortization schedule management, and budgeting. It is like having extra employees by your side but more cost-effective than that. An amortization schedule, for those not familiar with it, is a table that displays each loan payment owed. This will typically be worked out for a monthly arrangement and show the amount of the payment that is designated to interest relative to the principal. It is an important schedule to have documented, with clarity in computer form, because it clearly shows the breakdown of loan payments and is also useful for deducting interest payments when it comes to working out tax.

Things to Comply With

ASC 842 – is about recording all a company’s leases on the balance sheet. It overcomes the loopholes that once existed with US GAAP Standard 840 concerning lease reporting.

GASB 87 – also concerns better information reporting of leases on financial statements. It requires that all the leases be reported as capital leases, and so eliminates them from being classified as operating leases unless they can be defined as short-term leases of 12 months or less. GASB 87 classifies all leases as finance leases, with the exception of those that transfer ownership of the underlying asset to the lessee and short-term leases. These assets and liabilities are recognized on the statement of financial position, which may result in a significant increase in the number of assets and liabilities reported by many businesses. As a result, businesses must now follow GASB 87 lease accounting standards and report leased assets accordingly. GASB 87 aims to “increase the usefulness of governments’ financial statements by requiring reporting of certain lease liabilities that are currently not reported,” according to the GASB website. All leases must be reported as capital leases/financing leases under GASB 87.
IFRS 16 – exists as an International Financial Reporting Standard that ensures information is reported faithfully about leases. Again, it relates to financial statements, allowing investors to see timings and amounts of leases and so be in a better position to assess, with more certainty, cash flows.

So, ASC 842 is about recording all your leases on financial statements, GASB 87 is about including the longer-term ones as capital leases, and IFRS 16 is an international standard that provides the details about leases, such as timings and amounts, to help investors.

To conclude, EZLease will make accounting easier in terms of recording leases, complying with accountancy standards that change, and when it comes to timely and accurate production of reports for auditing purposes. The information at month and year-end will always be at your fingertips when using this kind of software.