Since January 1st of 2019, leasing accounting has to be done, following the IFRS16 accounting standard. Transitioning from one standard to the other is always challenging. However, companies can make use of IFRS 16 accounting software to make that transition easier. Dedicated software solutions will help companies oversee and manage multiple lease contracts with a large number of clients. Let’s see how tailor-made software helps the transition to IFRS 16!
Software makes it easy to meet obligatory transitional compliance requirements
As you may or may not know, there are mandatory/obligatory requirements for companies who are transitioning. These relate to sale and leaseback transactions, finance leasing operations, amortization figures, ROA (Right-of-use asset, off-market factors and a variety of other figures.
In addition, obligatory requirements also make it a must to calculate leases which were taken up in previous business groupings. It’s focused on derecognition of liability as well as adjustments of ROA figures. We can’t go into detail that much more because it would make for an entirely new article. Instead, let’s figure out how dedicated software can make the transition easier for you!
To begin with, the IFRS 16 software is a versatile tool for data management with calculation and recalculation tools available on demand. You can use these calculators and tools to stay compliant with the accounting standard and meet the requirements which are outlined. If the software is user-friendly and not too difficult to use, your accountants can easily get the gist of things and complete more tasks in less time.
This reduced the time you have to spend doing administrative tasks and streamlines a variety of business processes, related to lease accounting. So, IFRS 16 lease accounting software is definitely worth the investment. Depending on the software of your choice, you can simplify data flow and data management for accounting staff as well as have more precise calculations available to your business. By being compliant with the new standard, you can inflate the balance sheet and improve the valuation of your company!
Features of IFRS 16 software
Every piece of IFRS 16 software is different. Two products are rarely alike. And even if they seem so, from the product description, the underlying features and basic principles of how certain programmes work, are usually very distinct.
If you were to look at one of the industry-leading software solutions in lease liability accounting – Soft4Lessee, you’d find features like report generation, data import/export, dedicated liability and ROA calculators as well as much more. As IFRS16 leasing software, Soft4Lessee has a lot to offer.
Based on the Microsoft Dynamics NAV product family, it bears functional and visual familiarity with the Microsoft Office apps that everyone knows and understands. This is a great added bonus for businesses because less additional training is needed for the staff while transitioning. The interface seems familiar and is easy to cope with. Furthermore, you have flexible pricing options and a free trial to see how things work!