The world of lease accounting has been going through significant changes in recent times. With the landscape of business technology constantly evolving, staying compliant with industry standards and regulations is essential. Amid this whirlwind of updates, Leasify stands out as a global SaaS company, uniquely equipped to solve the challenges companies face worldwide.
A Booming Market: The Rise of Lease Accounting Software
Recent forecasts suggest that the lease accounting software market is set to more than double between 2021 and 2026. This explosive growth can be attributed to major shifts in accounting standards and increased regulatory requirements.
In 2016, the Financial Accounting Standards Board (FASB) rolled out ASC 842 under GAAP, and the International Accounting Standards Board (IASB) introduced IFRS 16 under IFRS. These new standards brought forward three significant changes:
- Balance Sheet Recognition: Gone are the days of straight-line expenses. Now, lease payments need to be forecasted over their expected lifetime, and the subsequent liability must be updated regularly to mirror alterations in underlying conditions.
- Higher Data Requirements: More than the basic data, such as start date, end date, and primary payment stream, is now needed. The updated standards demand a comprehensive set of details.
- Annual Disclosures: Instead of merely mentioning a value in a footnote, companies must now provide a detailed, 20+ line quantitative disclosure that lays out the nature and risk associated with their leases.
While public companies were mandated to make the shift in 2019, private companies had their deadline set for January 2020. However, the actual enforcement began in January 2022.
Given these enhanced regulations, specialized software, like what Leasify offers, has become almost a necessity, especially for large companies with multiple leasing contracts.
Why Leasify?
Leasify isn’t just another SaaS company; it’s a beacon for businesses navigating the complexities of lease accounting. As a worldwide company, Leasify understands the diverse challenges faced by companies across different regions and sectors. With a keen focus on ensuring compliance, Leasify has developed software solutions tailored to meet the unique requirements of the new lease accounting standards.
Conclusion
The world is fast-paced, and regulations are always evolving. Staying compliant is no longer a luxury but a necessity. As the market for lease accounting software is forecasted to skyrocket, Leasify, as a global SaaS company, positions itself at the forefront, ready to guide and assist companies worldwide. Choose Leasify, and let us handle the complexities, ensuring that your business remains compliant and ahead of the curve.
