LeaseCrunch has debuted a new solution for lease accounting auditing, designed to reduce the time and expense spent delivering this service.
LeaseCrunch Verify allows firms to add client accounts from one dashboard and enter and test a sample size of their leases. Firms can also add the selected sample of leases to their "prepared by client" list and invite clients to enter the leases directly in their own secure accounts.
The platform also lets firms export the amortization schedule to audit the following:
- Lease asset at the beginning of year and end-of-year;
- Short-term and long-term lease liability at the beginning and end of the year;
- Amortization expense;
- Interest expense;
- Variable expenses; and,
- Modification or re-measurement calculations for revised leases.
The automated amortization schedules inside the software allow firms to assess whether incorrect client inputs will require an adjusting entry, such as for when a client enters a generic discount rate, or when a client forgets to combine lease and non-lease components for a given lease.
“Auditing clients’ lease accounting is time-consuming and complex,” said LeaseCrunch CEO Ane Ohm in a statement. “In addition, verifying inputs from lease contracts into clients’ lease accounting tools and auditing the accuracy of the calculations can take hours and sometimes even days. LeaseCrunch Verify reduces the hours required to audit the lease standard, giving CPA firms better economies of scale.”
