Learn lease management and accounting with our expert advice.
When it comes to lease accounting, one term you’ll often encounter is the Right-of-Use (ROU) asset. Understanding what an ROU asset is and how to calculate its value is essential for businesses looking to stay compliant with lease accounting standards like ASC 842 and IFRS 16. In this article, we’ll dive into what an ROU asset is, its importance in lease accounting, and a step-by-step guide to calculating its value.
Managing leases is an essential but often complex part of running a business, especially as your portfolio grows. Many companies continue to handle their leases with spreadsheets or manual tracking, but this approach often leads to errors, inefficiencies, and missed opportunities. As commercial real estate becomes more complex, businesses are increasingly turning to lease management software to streamline operations, maintain compliance, and make data-driven decisions.
Managing commercial leases can be complex and time-consuming, especially for businesses with multiple properties or lease agreements. However, with the right strategies and tools, it’s possible to streamline the entire lease lifecycle and ensure compliance with industry standards.
In this comprehensive guide, we’ll walk you through everything you need to know about commercial lease management—from essential concepts to best practices and the benefits of automating the process.
For businesses managing commercial leases, compliance with accounting standards is critical to staying on the right side of regulators and ensuring accurate financial reporting. Two major standards, ASC 842 and IFRS 16, have reshaped how companies handle lease accounting, requiring lessees to recognize lease liabilities and right-of-use (ROU) assets on the balance sheet. If you’re managing leases, especially in a multi-location business, understanding and complying with these standards is essential.
In today’s fast-paced business world, managing multiple properties and leases can quickly become a daunting task. That’s where lease management software comes into play. Companies like Spacebase are revolutionizing how businesses handle their lease portfolios, ensuring efficiency, compliance, and scalability. But what exactly is lease management software, and how can it benefit your business? Let’s dive in.