January 2022 and lease accounting... Now What?

For the countless organizations with leases, the dreaded January 1, 2022, deadline to become compliant with ASC 842, IFRS 16 and GASB 87 accounting standards is now here. Companies across the globe are scrambling and looking for help to meet this new standard. Finding ways to operationalize the adoption of the new standards and mitigating the risk of human error when it comes to managing their leases in excel are priorities. Additionally, trying to move beyond third party integrations and becoming faster and more agile in their adoption of accounting automation software are concerns.

It is only fitting that companies want to quickly become compliant and, at the same time, automate processes and meet standards. For those organizations with a handful of leases, they may want to transition using traditional spreadsheets that they can upload into their accounting software. Netgain has built a lease accounting spreadsheet that can be downloaded here.

Software solutions allow finance and accounting teams to run the amortization schedules and, in a matter of seconds, create the lease liability, the Right-of-Use asset, the lease payment, and lease expense. By entering a few key details such as the monthly payment, term, initial borrowing rate and lease commencement date, you can free yourself from spreadsheets.

For companies with a larger quantity of leases, a streamlined solution embedded into their ERP and that posts to their GL is most efficient. With an intuitive embedded app solution, accounting teams are empowered with the ability to see all their leases in a single system. An all-in-one approach to embedded lease accounting software gives organizations the ability to save time and effort, so they can devote more of their resources to their overall mission.

Bottom Line

Netgain offers NetSuite users embedded apps that puts lease accounting and compliance where it should be — in your core financial system. Netgain’s lease accounting processes and automation are embedded into your NetSuite account, eliminating painful reconciliations, integrations and concerns about security and data integrity common with third-party apps.

One of our clients, Goodwill of Orange County saved time and money with the touch of a button and was able to automate the accounting of more than 75 leases. This allows them to devote more resources to the company’s overall charitable mission.

Read more about Goodwill’s story: Netgain | Netgain - Client Story - Goodwill

With NetLease being only lease accounting management solution that is 100% native NetSuite on the market today, accounting teams who have adopted our product worldwide are able to make modifications, ROU impairments, capture and report on all key contract provisions, renewals, terminations and whole host of other benefits. We also offer as a standard robust reporting, systems and controls and customization.

Goodwill Growth

With all the benefits of a native NetSuite solution, we can streamline all the accounting teams' efforts in NetSuite. Creating secure, efficient and cost-effective ways to operationalize the adoption of ASC 842, IFRS 16 and GASB 87. Please visit Netgain’s Website for more information on NetLease and any of Netgain’s other products.

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