LeaseCrunch® Gives Five Reasons Why Spreadsheets Aren't the Best Way to Comply With New Lease Accounting Standards
LeaseCrunch, the only lease accounting software made by former CPA firm auditors for CPA firm auditors, believes that firms relying on spreadsheets to handle new lease accounting tasks are putting themselves at a serious disadvantage.
MILWAUKEE, September 6, 2019 /PRNewswire-PRWeb/ -- LeaseCrunch, the only lease accounting software made by former CPA firm auditors for CPA firm auditors, believes that firms relying on spreadsheets to handle new lease accounting tasks are putting themselves at a serious disadvantage.
"Having been to numerous accounting conferences and staying in regular contact with CPA firms, I am surprised that there is still some debate between spreadsheets and software in complying with the new lease accounting standards," said Ane Ohm, a former Big 4 auditor and now CEO of LeaseCrunch. "It's clear to me that spreadsheets are an awkward and risky approach to implementing the new lease accounting requirements."
1. Spreadsheets can't help with complex calculations: There are a number of highly complicated aspects of the new standard, especially with regard to the quantitative footnote disclosures that include a weighted average discount rate and weighted average remaining term.
2. Spreadsheets can't help navigate nuances: Spreadsheets don't have built-in guidance to add context or provide help along the way. For example, the LeaseCrunch software includes wizards that guide users through appropriate questions to ensure the new lease standard is applied correctly. There are also tooltips available that provide definitions for key terms exactly when a user might need them.
3. Spreadsheets are time-consuming: As mentioned above, with no embedded calculations or processes in a spreadsheet, it becomes far more time-consuming to manage all the components.
4. Spreadsheets make version and calculation control difficult: When multiple departments and people are responsible for lease data, it can be difficult to share spreadsheets and have confidence that everyone is using the latest version.
5. Spreadsheets offer little security: A spreadsheet has no built-in validation and minimal security options, like password protections and encrypted data. To quote an audit partner I recently spoke with: "We do not want to have to audit spreadsheets."
About LeaseCrunch
Named by Accounting Today as one of the top new products of 2019, LeaseCrunch provides cloud-based lease accounting software for CPA firms, designed to help organizations implement the new lease accounting standards, ASC 842 and IFRS 16. Designed by CPAs, former Big 4 public accounting auditors, software development veterans and a former member of the FASB staff, the application offers an easy-to-use customer interface that delivers "audit in a box" lease accounting services, reducing the time it takes clients to prepare for an audit. LeaseCrunch allows companies to identify policy elections for the leasing standard through templates for both US GAAP and IFRS. For more information go to: http://www.LeaseCrunch.com.
Press Contact:
John Vita
John Steven Vita Communications
John.vita(at)jsvcom(dot)com
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SOURCE LeaseCrunch®
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