What is the best IFRS 16 software on the market? To achieve best practice in your company’s compliance, software solution should fulfill a set of critical functionalities. Here is our checklist.
Your choice of IFRS 16 software should work smoothly along your ERP system, without the need for IT department assistance. Plus, implementation should be fast without the need for a project manager.
Using it should be self-explanatory and not demand a new diploma. Intuitive lease accounting software simplifies and automates your compliance processes.
The software ought to support wide-ranging automation, real-time calculations and reporting. This fulfills all demands regarding lease accounting compliance while at the same time support better business decisions regarding leases.
Be sure all relevant leasing transactions are recorded in a transparent fashion, generating accounting outputs for your ERP system.
As contract changes take place, the software should calculate adjustments to the right-of-use asset and lease liability. Also, the system should produce general ledger postings that reflect the changes accordingly.
At lease inception, you will want to have a software that creates a right of use (ROU) asset and amortization schedule. It displays how the lease asset is depreciated and liability amortized over the lease contract lifetime. Following changes to the contract, new ROU asset schedules and liability amortizations are created.
To make compliance easier and more precise, the software needs to offer out-of-the-box accounting and standard reports for disclosures and forecasting for IFRS 16. This will come in handy for portfolio run-off reports for forecasting as well as for detailed audit reports.
The best IFRS 16 software is also a contract lifecycle management software, helping your company avoid overpayments and unwanted extensions. Thus, you should receive notifications when key dates are approaching, leases are due to expire, or action is required.
Sound contract management and IFRS 16 go hand-in-hand: Centralize and view your entire lease portfolio in real-time.
Replace ineffective spreadsheets and easily comply this year and every year. Further reading: Common problems when using spreadsheets to manage IFRS 16.
When you replace spreadsheets with software, you are fast, accurate disclosure and reporting every time.
Occasionally, even the best IFRS 16 compliance software can leave some questions unanswered. Knowing that the software is supported by a team who has helped hundreds of corporates with the same questions, is assuring as well as time-saving.
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