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 StandardsFirstly, 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.