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.
1. Fast and simple implementation
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.
2. Easy-to-use software
Using it should be self-explanatory and not demand a new diploma. Intuitive lease accounting software simplifies and automates your compliance processes.
3. Rich functionality taking care of time-consuming and challenging routine work
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.
4. Leasing subledger
Be sure all relevant leasing transactions are recorded in a transparent fashion, generating accounting outputs for your ERP system.
5. Simplified re-measurement
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.
6. Amortization and depreciation schedules
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.
7. Accurate disclosures and audit trail reporting
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.
8. End-of-lease notifications
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.
9. Centralized lease data
Sound contract management and IFRS 16 go hand-in-hand: Centralize and view your entire lease portfolio in real-time.
10. Automate Compliance
Replace ineffective spreadsheets and easily comply this year and every year. Further reading: Common problems when using spreadsheets to manage IFRS 16.
11. Accuracy delivered
When you replace spreadsheets with software, you are fast, accurate disclosure and reporting every time.
12. Real IFRS 16 support
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.
Further reading:
- How to get real business value from IFRS 16
- Converting to IFRS? Here are our tips for best practice
- How a large retailer handles 350 IFRS 16 leasing contracts
- The 5 most common problems when IFRS 16 is handled using Excel
- Read these tips for better IFRS 16 compliance
- The 4 most important steps when complying with IFRS 16
- An insider's story: What users experience when managing leases in a better way