More than 80% of American companies lease equipment rather than purchasing it.

That’s a big number.

And the reason you should care about it is even more significant. When your equipment lease accounting compliance deadline rolls around, all of your equipment leases will have to be noted on your balance sheet.

In the past, this treatment was reserved for capital leases only.

But now the Financial Accounting Standards Board (FASB) and its sister governing boards have also decided operating leases - including equipment leases - should move out of the footnotes to join the party on the balance sheet.

But just what is an equipment lease according to the accounting governing boards?

By now, everyone knows about the new lease accounting standard FASB ASC 842. 

It’s taken the lease administration world by storm. Public companies were the first to take on compliance challenges in 2019. And now private companies are implementing new processes to meet their January 1, 2020 deadline.

The rules, their implications, and the challenges have been covered in detail:

• FASB ASC 842 Summary
• 13 Must-Read Articles for Lease Accounting Compliance
• Why Lease Accounting Lagards Face Serious Risks
• The Complete FASB ASC 842 Lease Accounting Resource Center
• New Lease Accounting Standard (ASC 842) – Adoption Readiness Planning

What many organizations are finding out is the immense amount of time, energy and money it takes to implement these new lease accounting standards.

FASB 842 compliance is hard.

Picking a lease management system can be even harder.

We get it.

Most of the companies offering this software today present similar features in different user interfaces.

And since everyone is clamoring to get the lease standards implemented pronto, many companies - who have little-to-no experience with this industry - have jumped on the lease management software bandwagon.

And they’ll do and say anything to get as many new clients as they can.

In fact, we’ve heard so many cautionary tales from customers and prospects about the shady tactics of these irrefutable lease management systems, we put together a list of the top 3 lies we’ve heard them tell over and over again.

Use them to ask the right questions and choose the best lease management software for your business.

Time is running short for compliance with the new FASB 842 and IFRS 16 lease accounting mandates. Selecting the right technology solution is essential for meeting the deadline in the short term and streamlining ongoing compliance into the future. There are several types of ASC 842 software solutions on the market, so it can be difficult to know exactly what to look for.  Here are some questions you can ask any vendor you are evaluating to ensure you are getting the ASC 842 software you need.

Since 2010, the Financial Accounting Standards Board (FASB) has been considering significant changes to the way leased real estate and other assets are reported by public companies. The new lease accounting standards were announced last year and will go into effect for pivate companies and public companies with private debt on December 15, 2018 and for public companies on December 15, 2019 It is important that business leaders think about what this change will mean for them and how they should prepare.

What will change?

AMTdirect has been helping customers keep occupancy costs down for more than 20 years by supporting effective lease administration and critical date management. But many clients are still paying more for their locations than the lease requires.

Why?

Variable charges for leases can be complex and difficult to calculate correctly for both tenants and landlords. Overcharges in common area maintenance, insurance, taxes, repairs & maintenance, construction costs, and more are shockingly common. And let's face it, lease audits are a pain in the neck.