How AASB 16 software makes it easy to stay compliant
For years, one of the biggest challenges for accounting staff and teams was the necessity to stay compliant within the regulations and standards. When it comes to AASB 16 leases, a new set of standards and rules have made it much more difficult to carry out AASB 16 lease accounting from an administrative standpoint. Whilst the essence of the service remains the same, the back-end management (for the lessee and the lessor) have begun to pile up and make it difficult to keep up. This is why more and more individual businesses, franchises and standalone branches have been turning towards purpose-built AASB 16 lease accounting software solutions for help dealing with big data.
First off – why does AASB 16 compliance create so many challenges?
AASB 16 leases require a new kind of accounting. Drastic changes to the terminology and existing bookkeeping practices created headaches for businesses that have leasing agreements. Now, without any difference between operating and financing leases, standards to lease tangible assets and recognition of right-of-use assets, lessees have much more ground to cover.
Enter AASB 16 accounting software. Many different tools are on the market. Most of them look similar on the surface but if you dive deeper and try to compare and analyze the list of available features, it’s easier to separate top and more proficient tools from the mediocre ones.
Why are we saying this? Well, because changes to the regulations have already made the AASB 16 accounting standard for leases a lot of trouble for accounting staffs. Software tools are now a must-have. However, many companies aren’t familiar with the benefits of the dedicated software and just jumped on the cheapest available offer, losing out on functionality and not reducing the workload.
How AASB 16 lease accounting software saves time
Back in the days when computer software was much more limited, a lot of lease accounting had to be done manually, by hand or by using outdated Excel calculators. Now, companies have access to more sophisticated, purpose-built tools, ready to automate, simplify and streamline almost any process.
Have you counted the time it takes your accounting staff to prepare the necessary bills, generate reports and do a lot of other day-to-day AASB 16 lease accounting duties? Of course, it varies from company to company but once new software is implemented, organizations are abruptly noticing immense time saving. For example, the software can shorten lease origination by hours and generate reports with only a few clicks. Thanks to the wide range of integrated templates and calculators, you can almost one-click to generate important charts or find relevant numbers.
Such a tool allows businesses to better manage their data streams, making it a simpler job to keep up with the challenges posed by AASB 16 leases. If you launch it on the cloud, you don’t even need external hard drives or dedicated internal server storage. View historic or recent data to keep compliant, informed and able to make more accurate managerial decisions. Thanks to modern software tools, even complex lease accounting duties become easy and quick to do. Most software tools work well regardless of your niche and/or field. They’re very versatile.