How to Transition to ASC 842 for Free

The new lease accounting standards 

If your business handles leases, you should be aware of the new lease accounting standards, ASC 842, IFRS 16 or GASB 87. All new standards are now in effect and should be adopted now, before audit season is upon us. Early adopters have found that implementing the new standards has been difficult, and they need a software system to handle the detailed recordkeeping leases require.  

For accounting teams on NetSuite, there is an easy, free solution. 

The new solution: NetLease Go Free 

NetLease Go Free is a free version of our top-reviewed product NetLease, for accounting teams that manage up to five leases. It is the perfect product for teams with simple lease accounting needs that want to leave their spreadsheets for an easier option. It provides a zero-cost path to become fully GAAP compliant and offers a smooth transition over to the new lease accounting standards.  

In a previous article, “A rant about ‘free’ lease accounting software,” my colleague, Josh, explained how some lease accounting software products offer “free versions” that are just stripped-down versions of the full product. Often, accounting teams can’t meet the compliance requirements of ASC 842 and IFRS 16 without purchasing more features. In addition, some products offer a time limit like a “free trial,” which makes it difficult for businesses to know if a product will fulfill their needs in such a short amount of time.  

NetLease Go Free is free for as long as you need it and with give you everything you need for your ASC 842 compliance demands. You just need to be on NetSuite. 

Things you get for free:

1. Software 

One of the best things about NetLease Go is that you’ll be fully GAAP compliant from the start! It’ll help when your auditors come knocking on your door and reviewing your leases. NetLease Go Free includes many free features: unlimited users, Oracle NetSuite unified financial database and security and knowledge-base access with video tutorials. 

Anyone on your team can be a user, and you don’t need to worry about buying user licenses, which is one less thing to worry about. This feature is beneficial if you have a team that is growing.  

As a NetSuite embedded app, it’s also conveniently built on the Oracle NetSuite platform. This not only makes the installation process a breeze, it gives you the peace of mind that your data is secure. No need to track down the co-worker who has the most up-to-date version of the Excel spreadsheet or search endlessly in folders—it’ll all be in NetSuite. 

You also get free access to the knowledge base, a key resource that many “free” solutions don’t offer. It will be your go-to reference tool, and it is filled with video tutorials and articles to help you troubleshoot any problems.  

Software Summary: 

  • Up to five leases 
  • Unlimited users 
  • Fully GAAP compliant 
  • Oracle NetSuite unified financial database and security 
  • Self-service installation and set up 
  • Knowledge-base access with video tutorials 

2. Features 

Some of the best NetLease Go Free features include: 

  • The ability to generate and adjust lease amortization schedules  
  • Automatically adjust schedules for pre-paid lease payments, initial direct costs and lease incentives  
  • Disclosure reporting for ASC 842, IFRS 16 and GASB 87 

These features make it easy to review your individual leases and amortization schedules. There’s less stress in the review process with automation and when clean, easy-to-use reports are used. 

NetLease Go Free can also segregate leases by type and supports a variety of leases including operating, financing, short-term and operating subleases. This makes it very convenient if you handle a variety of leases because NetLease Go Free can handle any leases that you have. The following is a summary of NetLease Go Free features. 

Features Summary: 

  • Generate amortization schedules 
  • Disclosure reporting for ASC 842, IFRS 16 and GASB 87 
  • Built-in NetSuite-managed role access 
  • Segregate leases by type 
  • Support for operating, financing, short-term and operating sublease 

3. Reporting 

Reporting is the most important step of lease accounting. NetLease Go Free generates journal entry reports and disclosure reports. For journal entry reports, it includes summary and detail periodic general ledger impact reports and short-term reclass reports. These reports are very useful when reviewing your general ledger and seeing the effects of specific journal entries.  

The disclosure reports include:  

  • Components of lease cost 
  • Lease liability maturity analysis 
  • Supplemental balance sheet information 
  • Supplemental cash flow information 
  • Weighted average discount rate and term reports  

All are very helpful for your reporting needs. 

Limitations of NetLease Go Free version 

Although NetLease Go Free has a lot of features and capabilities, there are several reasons why you should consider upgrading to either NetLease Go or NetLease Max. 

  1. More than five leases. 

NetLease Go Free is a great starting point if you have a handful of leases, but if your business is heavily involved with leases and lease accounting, you’ll want to investigate these two higher-value software products because they can handle more than five leases. 

  1. Complex lease accounting. 

NetLease Go Free is great for businesses with simple lease accounting needs. But for larger businesses, it might not be the best solution. NetLease Go and NetLease Max offer more features when it comes to reports, customization and automation, which can really help a large organization save time and potentially money. 

  1. Additional support needs. 

NetLease Go Free is a self-service installation and setup. Depending on your business needs, it might be beneficial to upgrade if you expect to need help with the set-up process or if you have a lot of questions about using the software. NetLease Go and NetLease Max have varying levels of support, but all the software products include access to our knowledge base, which includes video tutorials. 

See a full comparison here. 

In addition, you can schedule a demo and get in touch with our sales team here. 

How to Get NetLease Go Free 

The installation process is self-service, but there are three easy steps to get it up and going for you.  

  1. Download the NetLease Go Free Bundle
  2. Follow simple installation and setup instructions.  
  3. Use the knowledge base complete with how-tos and time-saving suggestions. 

Just like that, you’ll have NetLease Go Free, and you’ll be on your way to a smooth transition to ASC 842 compliance. 

Bottom Line 

You don’t need to struggle with the adoption of ASC 842, especially if you have simple lease accounting needs. You can leave the spreadsheets behind and upgrade to NetLease Go Free. It’s the perfect, easiest free solution for your ASC 842 compliance needs if you have up to five leases. 

Free Download

 

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For more information on automating your lease accounting, schedule a conversation with one of our CPAs