Implementing Lease Accounting Software for NetSuite (Quick wins for NetSuite Users)
What is a Lease Accounting Software Solution?
Lease accounting software is a type of software that helps businesses manage their leases and lease-related finances. This type of software can help businesses keep track of important lease information, such as the terms of the lease, the payments that are due, and other financial details. Lease accounting software can also help businesses generate reports on their lease activity, which can be used for tax purposes or for financial planning.
There are a number of different lease accounting software programs on the market, and businesses should choose one that meets their specific needs. Some factors to consider when selecting a lease accounting software program include the size of the business, the type of leases that the business has, and the features that the program offers.
Why Do Businesses Need Lease Accounting Software?
Lease accounting software can be a valuable tool for businesses that lease property, equipment, or other assets. This type of software can help businesses keep track of their leases and make sure that they are meeting their financial obligations.
How Does Lease Accounting Software Work?
Lease accounting software typically includes a database that businesses can use to store information about their leases. The software may also include tools for tracking payments, generating reports, and managing finances. Some lease accounting software programs also offer features that can help businesses negotiate better lease terms or find new properties to lease.
How are Leases Accounted for in Accounting?
Lease accounting solutions can be complex, and businesses should use lease accounting software to ensure that they are correctly accounting for their leases. Generally, leases are classified as either operating leases or finance leases. Operating leases are typically short-term and do not involve the transfer of ownership of the leased asset, while finance leases are typically long-term and involve the transfer of ownership.
Different accounting standards may apply to different types of leases, so businesses should be sure to consult with their accountant or financial advisor to ensure that they are compliant in their lease management practices.
What Are the Benefits of Using Lease Accounting Software Solution?
A lease accounting software solution can offer a number of benefits to businesses, including:
- Improved accuracy and efficiency in accounting for leases
- The ability to generate reports on lease activity
- Better financial planning and decision-making
- The ability to negotiate better lease terms
- Improved cash flow management
How Can Lease Accounting Software Help Finance Teams?
Lease accounting software can help finance teams in a number of ways, including:
Generating Reports on Lease Activity
Lease accounting software can help businesses generate reports on their lease activity, which can be used for financial planning or for tax purposes.
Improving Accuracy and Efficiency
Lease accounting software can help businesses improve the accuracy and efficiency of their lease accounting by automating journal and transaction creations in line with ASC 842 compliance and GASB 87 lease accounting standards.
Managing Finances and Cashflow
Lease accounting software can help businesses manage their lease-related finances and get better visibility into their ongoing obligations.
Classifying and Tracking Leases
Lease accounting software can help businesses classify and track their leases, which is important for both financial reporting and tax purposes.
Calculating Lease Payments
Lease accounting software can help businesses calculate lease payments, which can be used to budget and forecast future expenses.
Managing Lease Renewals
Lease accounting software can help businesses manage lease renewals and make sure that they are getting the best terms possible.
How many leases would I need to be managing to make an investment in Lease Accounting Software worth it?
There is no set answer to this question, as the decision of whether or not to invest in lease accounting software depends on a number of factors, including the size and complexity of your business's lease portfolio, the number of staff members who will be using the software, and your budget. However, if you are managing a large number of leases or complex leases, lease accounting software can help you save time and improve accuracy.
When choosing lease accounting software, businesses should consider their needs and budget to find a software program that meets their requirements.
How Do You Manage Leases in NetSuite?
NetSuite's can be customised to better manage leases. Creating a custom record for leases, along with the relevant fields could be a solution if your requirements are quite simple, however your finance team will still need to ensure that lease payments are being accounted for correctly, under the new requirements set out in the GASB 87 and ASC 842 guidelines.
Another solution is to take advantage of Netgains SuiteApp, NetLease, which has been designed specifically to enhance NetSuite's native functionality to streamline the management of NetSuite on platform.
What is NetLease by NetGain?
NetLease is a NetSuite SuiteApp that offers businesses a complete solution for managing leases on the NetSuite platform. NetLease offers a number of features and benefits, including:
- ASC 842 and GASB 87 compliance
- The ability to manage multiple leases in one place
- NetLease is a centralised repository for all lease-related documents and files
- The ability to generate reports on lease activity
- Improved accuracy and efficiency in accounting for leases
- Improved cash flow management
What Reporting is Available in NetLease?
NetSuite comes standard with a number of reports to help companies stay compliant and gain increased transparency over their lease accounting. Some of these reports include:
Components of Lease Costs & Impairments Report
The Components of Lease Costs & Impairments Report shows the various components that make up the total cost of a lease, as well as any impairments that have been recorded.
Lease Liability & Asset Report
The Lease Liability & Asset Report shows the current balance of a company's lease liabilities and assets.
Lease Summary Report
The Lease Summary Report provides an overview of all leases managed in NetSuite, including the total amount of lease payments, the status of each lease, and the expiration date.
Lease Transaction Detail Report
The Lease Transaction Detail Report provides a detailed view of all transactions related to a lease, including the date, type, and amount of each transaction.
Supplemental Balance Sheet Information
The Supplemental Balance Sheet Information Report provides supplemental information about a company's balance sheet, including the carrying value of lease assets and liabilities.
Supplemental Cash Flow Information
The Supplemental Cash Flow Information Report provides supplemental information about a company's cash flow, including the amount of cash paid out for lease payments.
Lease Liability Maturity Analysis
The Lease Liability Maturity Analysis Report shows the amount and timing of future lease payments, which can help businesses with cash flow planning.
Weighted Average Rate Summary
The Weighted Average Rate Summary Report shows the weighted average interest rate of all leases managed in NetSuite.
Weighted Average Term Summary
The Weighted Average Term Summary Report shows the weighted average term of all leases managed in NetSuite.
How Do I Find Out More?
If you are using NetSuite and are interested in learning more about NetLease by Netgain, then reach out to the team at TeamBlueSky to learn how easy it is to get up and running.
NetLease is available at no cost for up to 5 leases managed, with paid plans available if your lease management needs are more complex.
Henry Sack
General Manager
With over 12 years of experience as a NetSuite implementation consultant, Henry Sack leads TeamBlueSky’s team of NetSuite and accounting experts in his role of General Manager.
TeamBlueSky is a leading Australian
NetSuite Alliance Partner whose mission is to provide critical
NetSuite BPO and
Payroll services to NetSuite clients who are wanting to simplify their
back office processes and partner with a leading
NetSuite administration expert.
TeamBlueSky have also partnered with global Suite Developer Network partners to offer local solutioning, implementation and support services for global NetSuite SuiteApps.
More From Our Blog
