LeaseQuery named #1 Lease Accounting Solution 3+ Years in a Row

CONTENT BY
Kiley Arnold, CPA, Sr. Product Marketing Manager

Best Practices for Creating a SaaS Center of Excellence

Introduction SaaS (Software-as-a-Service) applications are indispensable for organizations aiming to maintain a competitive edge and lower IT costs. However, shifting from on-premise software to SaaS creates challenges as traditional software asset management (SAM)...

Lessor vs. Lessee: Differences, Accounting, & More Explained

1. Lessee meaning 2. Lessor meaning Lessor vs. lienholder 3. Who are the lessor and the lessee in rental agreements? Commercial real estate Lessor and lessee in subleases Sale-leaseback transactions 4. What is lessor’s risk insurance? 5. Differences in lessor vs....

FASAB Overview (Federal Accounting Standards Advisory Board)

1. What is FASAB? 2. Who reports under FASAB? 3. What is US GAAP? FASB explained GASB explained SEC explained 4. Summary 5. Related articlesWhat is FASAB? The Federal Accounting Standards Advisory Board, or FASAB, is the body that regulates generally accepted...

Making the Business Case for Financial Contract Management Software

Finance and accounting professionals are tasked with managing the financial health of their organization, including identifying cost savings opportunities, improving operational efficiency, and accurately budgeting and forecasting. To do this, they need visibility...

Streamline Your Lease Accounting with Catch-Up Lease Actions

Accounting is often seen as a profession focused on the past, meticulously recording and reporting financial activities that have already occurred. While finance predicts the future and operations manage the present, accountants diligently keep the financial records....

Financial Contract Types and More Explained for CFOs and Finance Pros

Navigating corporate finance requires a solid understanding of financial agreements essential for CFOs and finance professionals. These contracts play a vital role in corporate finance, helping businesses manage risks, secure funding, and facilitate mergers and...

Commercial Lease Overview: Lease Types, Management, Accounting, & More

1. Understanding commercial lease agreements Commercial leases of equipment 2. Commercial lease management Lease management software 3. Commercial lease types Gross lease / full-service lease Net lease Absolute net lease or "absolute NNN lease" Modified gross lease...

Adjustments and Reclasses in Accounting: Understanding the Basics

Adjustments are made at the close of an accounting period to rectify errors, record unaccounted income or expenses, and maintain the integrity of financial records to prepare comprehensive financial statements. This ensures financial data accurately reflects the...

Financial Contract Management: A Guide for Finance Teams

1. What is financial contract management? 2. Benefits of financial contract management Central repository Visibility Ease of use 3. How these features facilitate budgeting Single source of truth Critical date knowledge Research effectively Visible obligations Quicker...

The Operating Budget: A Step-by-Step Approach

1. Operating budget defined What is the importance of the operating budget? Operating budget vs. capital budget 2. Creating operational budgeting goals Increasing revenue Cutting expenses 3. Largest expenses of the operating budget People expense Rent expense Saas...

Financial Contract Tracking: What You Need to Know

It's that time of year for accountants and finance professionals - the calm before the storm. The auditors left their PBC list when they were doing some interim work in November. If you can just pull together all the various contracts and supporting documentation they...

Software Capitalization Rules under US GAAP and GASB

1. Software Capitalization Rules under FASB and GASB 2. Types of software Purchased software Internally-developed software Software as a Service (SaaS) 3. SummarySoftware Capitalization Rules under FASB and GASB The capitalization of software development costs was a...

The Impact of AI in Accounting: Embracing the Future of Finance

In an era defined by technological advancements, the landscape of accounting is undergoing a profound transformation - and just in the nick of time. The media is flooded with warnings about the lack of accountants. As businesses seek to optimize their financial...

What is SaaS License Management Software?

License management software explained With the ongoing technology boom, many companies are turning to software solutions to help manage their data, including license management software. License management software is a type of asset management software that helps...

What Nonprofits Need to Know About ASC 842

ASC 842 at a glance ASC 842 is the new FASB lease accounting standard. It governs how entities record the financial impact of their lease agreements. The biggest change is the standard now requires all public and private entities reporting under US GAAP to record most...

Operating Lease Accounting under ASC 842 Explained with a Full Example

1. Operating lease treatment under ASC 842 vs. ASC 840: What changed? 2. Operating lease vs. finance lease identification under ASC 842 Transference of title/ownership to the lessee Purchase option Lease term for major part of the remaining economic life of the asset...

What Is Contract Management? Everything You Need to Know

If you are an accountant, you likely deal with contracts regularly - supply agreements, leases, SaaS subscriptions, and various other commitments and obligations. How does your company organize all of these contracts? Is the system your organization is using for...

Accrued Rent Accounting under ASC 842 Explained

1. What is accrued rent? Accrued rent vs. deferred rent 2. Accounting for accrued rent with journal entries Accounting for accrued rent under ASC 840 Accounting for accrued rent and deferred rent under ASC 842 3. SummaryWhat is accrued rent? Accrued rent is a...

ASC 805 Business Combinations & Lease Accounting Explained

1. Accounting for a business combination Favorable and unfavorable leases Leases obtained in a business combination under ASC 840 Leases obtained in a business combination under ASC 842 Transitioning leases obtained in a business combination under ASC 840 to ASC 842...

Investment Accounting Methods under US GAAP Explained

What is an investment in accounting? You have probably heard of stock investments, and the term “investment” may lead you to immediately envision stocks, bonds, and mutual funds. While this line of thinking is correct, accountants view investments as this and much...

FASB Proposes Amendment for Guidance on ASC 842 Discount Rate

On June 16, 2021, the FASB issued a proposed Accounting Standard Update (ASU), or amendment to ASC 842. The amendment affects private companies and not-for-profits that have not yet adopted ASC 842. The proposed change provides additional guidance and flexibility for...

Lease Amendment Accounting Explained: Expansion of Leased Premises

1. Accounting for amendments resulting in additional assets under ASC 840 Example: Accounting for amendments resulting in obtaining additional asset(s) under ASC 840 2. Accounting for amendments resulting in additional assets under ASC 842 Example: Accounting for...

Sublease Accounting under ASC 840 and ASC 842

1. Accounting for a sublease under ASC 840 2. A comprehensive example of sublease accounting under ASC 840 Straight-line amortization schedule for the head lease Accounting for an operating sublease under ASC 840 3. Accounting for a sublease under ASC 842 4. A...

Preparing for Your First Post-Transition Lease Accounting Audit

When the FASB released its new lease accounting standard in 2016, and GASB in 2017, lease accounting was revolutionized. Hailed as one of the biggest changes to accounting in decades, it quickly became clear that the impact on the balance sheet would be significant....

IRS Section 179, ASC 842, and the Impact on Lease vs. Buy Decisions

1. Understanding IRS Section 179 Section 179 and bonus depreciation 2. How IRS 179 affects lease vs. buy considerations 3. How new lease guidance affects lease vs. buy decisions 4. Getting it right with a collaborative decision-making process 5. Related...

Rent Abatement and Rent-Free Period Accounting under US GAAP

1. What is rent abatement? 2. Accounting for rent abatement and rent-free periods under ASC 840 and ASC 842 example Example under ASC 840 Example under ASC 842 3. Summary 4. Related articlesFor a simple operating lease, calculating the straight-line rent expense...