Excel is the catch all in the accounting world. We have all created spreadsheets that become cluttered but essential to our processes. Excel is great for creating a table, but the more complex the concept, the more smarter software becomes appealing. Using Excel requires the creation of your own formulas and tables. It is a manual heavy process with significant room for human error. Lease accounting in Excel specifically can quickly become complex and difficult to track.
Modifications to your lease can affect rates, payments, and time, causing extensive manual recalculation of formulas. Further complexities such as arrears and advance payments will again change your formulas. Getting into the details of different lease types and their calculation requirements is time consuming and will turn you into a reluctant lease expert.
Using a software program simplifies these complexities and streamlines your period-end tasks. Software takes the formula calculations into the backend and allows for auto updates as you change numbers in the front-end. By inputing the basic information for the lease, software can identify what type of lease it is and calculate the amortization table for you. Software like Netgain’s NetLease take that a step further and generate the journal entries as well, making your month end process seamless.
The largest plus of using a software is that it can handle modifications to your leases. Changes to payments or interest rates in the middle of a lease are easily entered and the software updates and recalculates on your behalf. This removes the possibility of human error and messiness that exists in Excel.
What if I only have one lease?
It may seem easy to track one or two leases in Excel but problems can still come up as modifications are needed or your company grows. Netgain's NetLease Go Free is an easily downloaded software that integrates into your current NetSuite account and calculates the tables for you. It removes the need to find the lease Excel sheet buried three folders deep every month to enter your one journal entry. And it automatically handles modifications to your leases.
Software automation like NetLease provides ease for accountants and there is a solution for every level of complexity, depending on your needs. There is no reason to deal with a messy Excel worksheets again when it comes to calculating your leases.