Lease Accounting Software Replacement Easier Than You Think

3 min read
May 19, 2022
CoStar Real Estate Manager Blog

Lease Accounting Software Replacement Easier Than You Think

Replacing an Inadequate System Is Easy with CoStar’s 4 Step Process

Did your company adopt a new lease accounting software system for ASC 842 compliance, only to discover it lacked important functionality and required countless hours of manual spreadsheet workarounds, leading to lost productivity, control issues and serious audit challenges?

If so, you’re not alone. 

Tackling the new lease accounting standard was challenging enough. But now after just a few years using under-developed systems, many companies are closing the books on their initial lease accounting solution in favor of a more automated platform that saves hundreds of accounting hours.

While the idea of replacing software may trigger frustrating memories from the initial compliance project and software implementation, lease accounting software replacement is easier than you think. Especially when companies select CoStar – the most proven lease accounting platform with the most experience replacing inadequate systems.   

The Hard Part of Lease Accounting Software Is Done

The two most difficult challenges for companies that initially adopted ASC 842 were:

  • Gathering all leases and getting the right information abstracted and into a database.
  • Defining the policies and procedures for ongoing operations under the new guidance.

The good news about lease accounting software replacement is that it involves simply migrating existing data to a better platform and applying defined policies, procedures, and discount rates in a system that easily manages these profiles and tables. The up-front data challenges do not need to be revisited.

Replacing an Inadequate System Is Easy with CoStar’s 4 Step Process

CoStar’s lease accounting software offers the most advanced automation and functionality available, and CoStar has replaced more under-performing systems – including many at large Fortune 1000 enterprises – than any other solution supplier.

CoStar’s extensive replacement experience drives an easy, four-step process for migrating companies to the platform trusted and recommended by more leading advisory firms and service providers.

1. Migrate the Lease Data

Using CoStar’s proprietary solution, migrating lease information from another system is simple. The extract, transfer, load (ETL) protocol provides reliable migration of essential lease information with a proven tool that has built-in error handling.

2. Replicate System Integrations

System integrations are a critical part of ongoing lease accounting operations. Existing integrations serve as a blueprint for CoStar integration specialists to replicate them for the system migration. CoStar has delivered and manages more than 900 integrations with leading ERP and other business systems.  New integrations can easily be added too.

3. Review Lease Data

Once data migration and integrations are complete, CoStar’s experienced team of analysts work with customer accounting teams to thoroughly review results and functionality to ensure lease data is processed as expected. Both CoStar’s data transfer solution and software platform have built-in data validation.

4. Learn How Much Easier Lease Accounting Can Be

CoStar offers the most automation for lease accounting, so it takes much less time to train users on how to adopt a more functional platform. Accounting teams will quickly learn how CoStar’s system works for them, instead of doing a lot of manual processes to make their old system work.

Lease Accounting Migrations So Good, They’re Guaranteed

Industry experts with leading accounting firms estimate the failure rate among lease accounting compliance projects is more than 25 percent based on feedback from public companies and early adopters. Much of that failure is attributed to the selection of inadequate lease accounting software.

CoStar now has so much experience replacing lease accounting systems that migration projects come with a guarantee of success.

Take the First Step to Better Lease Accounting

Don’t settle for a lack-luster lease accounting system that requires manual spreadsheet calculations and workarounds.  Migrate to a platform that includes automated journal entry system uploads, lease modification batch remeasurements, system-generated audit details, internal controls, data validations, automated retrospective true-ups, discount rate matching, advanced reporting, and more.

If your existing lease accounting software is missing these essential, time-saving automations – or if you are looking to implement the company’s first solution – get the most advanced system that offers all this functionality and more: CoStar.