IN THE WORKS

If you’re managing multiple locations, ASC 842—the new lease accounting standard—might already feel like a big deal. This rule, designed to make financial reporting clearer and more comparable, means that leases longer than 12 months will now have to show up on your balance sheet. While this can feel like a lot to navigate, it’s important to understand how it affects your operations and what you can do to stay compliant, all while keeping your lease management efficient.

For restaurant and retail chains juggling leased locations, the specter of ASC-842 looms large. This complex accounting standard, demanding comprehensive lease recordkeeping, often triggers groans and late-night spreadsheet sprints. But what if the real culprit behind your ASC-842 woes isn't the standard itself, but the disconnect between your lease administration and accounting departments?

The first few years of ASC 842 compliance have served as a valuable learning experience for organizations of all sizes. This period of adaptation has provided the opportunity to identify areas for improvement and refine existing strategies. Whether you're a seasoned public company or a private company embarking on future years, a proactive approach is essential to optimize your lease management strategy and ensure long-term compliance.

Tenants, Here is Why You Need Our Essential Lease Accounting Software Property Works Makes Meeting ASC 842 Requirements Simpler Than Ever Maintaining compliance with ASC 842, which became effective January of 2022, can be complicated if you're managing your lease accounting with unwieldy, error-prone methods like manual spreadsheets. Property Works’ streamlined solution offers you robust reporting in an easily auditable format, saving you time and stress. We broke down the differences between ASC 842 and how it differs from its predecessor ASC 840 in this previous post.

A new lease accounting standard—namely, Accounting Standards Codification (ASC) 842—has made significant changes to accounting practices for operating leases, causing major frustration for large and small companies alike.