Lease accounting software should be able to automate the true-up process with a retrospective lease remeasurement. Although many can’t, CoStar does.
Without Lease Accounting Automatic Retrospective True-Ups
It’s inevitable: Accounting departments will sometimes receive information late, after they’ve already closed the books for a period.
Errors or omissions discovered after month-end close require manual corrections in spreadsheets when software lacks functionality to automatically fix these issues. Accountants must show the amount that should have originally been booked, the amount that was booked, and the difference between the two. This tedious process is time consuming and introduces ASC 842 compliance risk with accounting records maintained outside of the software.
Lease Accounting Automatic Retrospective True-Ups with CoStar
CoStar automatically calculates the true-up based on the dates of an adjustment, posts the impact to the general ledger in the current period with no impact to a closed accounting period, and maintains an audit trail of the transaction. All accountants need to do is enter the correct data with the correct date. The software will recognize that the date occurs in the past and will process the true-up entry in the next open period.
If your existing lease accounting software is missing these essential, time-saving functions – or if you’re looking to implement the company’s first solution – get the system that can do all this and more.