In the realm of accounting, managing leases can be an exacting task. With ever-evolving standards and the pressing need for accuracy, many accountants have sought refuge in complex spreadsheets to stay compliant. While this may hold the line for a while, it also mires teams in manual processes and creates opportunities for human error, where even a simple typo can have cascading effects.
LeaseCrunch, based in Milwaukee, was developed specifically in reaction to these issues, having been founded in the wake of the Financial Accounting Standards Board completing its lease standard and realizing that software will likely be needed to track all the necessary information. LeaseCrunch provides customers with a streamlined lease accounting solution made specifically for CPA firms and their clients, with the software designed to foster collaboration between the two as they maintain compliance with not just ASC 842 but other standards such as GASB 87, GASB 94, GASB 96 and IFRS 16 as well.
LeaseCrunch CEO and co-founder Ane Ohm discussed her company's recent developments as well as some of its future plans with Accounting Today.
How would you best describe what your company does?
Ohm: LeaseCrunch offers easy-to-use and automated lease accounting software that significantly reduces the time needed to transition, account for and maintain leases in compliance with the new lease accounting standards: ASC 842, GASB 87, GASB 94, GASB 96 and IFRS 16.
What is in your product line, and what is your flagship product?
Ohm: LeaseCrunch, our flagship product, eases the burden of implementation and ongoing maintenance for lease accounting calculations. LeaseCrunch Verify is a simple tool for CPA firms to audit their client's lease accounting, checking for errors and ensuring accuracy.
What product of yours do you think should be better known among accountants?
Ohm: LeaseCrunch has been used by thousands of organizations to comply with lease accounting standards and we know thousands more likely completed this work with spreadsheets. We are accountants ourselves and we understand the allure of the spreadsheet. We also know that this is more complicated than it appears at first glance and not worth the extra pain and effort to maintain over time. Our approach removes the calculation risks and offers clear ROI year after year.
What was the last big initiative or project your company completed?
Ohm: Over the past year, we helped over 15,000 organizations quickly and simply complete their first round of reporting for GASB 87 and ASC 842.
What is the most exciting new thing you're working on?
Ohm: The LeaseCrunch team loves talking to clients and learning new ways we can streamline their workflow. From lease alerts to continued GASB enhancements, we always have multiple projects in process. In fact, this summer is all about activities geared toward listening for client input, including surveys, structured conversations with CPA firms, and an in-person strategic advisory forum. We've built strong relationships with CPA firms and we want to continue providing great value for them and their clients.
What differentiates your company from others similar to it? What makes you unique?
Ohm: Unlike most lease accounting solutions that were built for a company and adapted to be used by a CPA firm, we are built specifically for CPA firms. Our software is architected to more easily collaborate with clients, resulting in less time auditing.
What is the biggest tech challenge facing accountants today?
Ohm: While significantly fewer students are graduating with accounting degrees, accounting itself is becoming increasingly more complex. As a result, accountants need immediate workplace efficiencies to swiftly produce accurate financial reports. The challenge is that software often requires a steep learning curve to start reaping its benefits, which in turn limits the efficiencies that are possible. Technology needs to solve complex accounting problems while remaining simple to use - this seems apparent and yet most accounting software fails on the usability scale.
What is the biggest challenge with selling to this market? Of being a company whose customers are primarily accountants?
Ohm: Accountants are amazing at filling gaps with spreadsheets and some feel it's a simple, cost-effective solution for the new lease accounting standards. Thirty years ago, I worked with someone in public accounting and, as a private-company CFO, he was one of the first people with whom I shared the LeaseCrunch story. About a month ago, he called and confessed that he'd implemented the lease accounting standard with a spreadsheet and was regretting it. "Can you help me get started with LeaseCrunch?" It can be difficult to help accountants see the large initial investment followed by years of challenges with maintenance as leases change, along with version control concerns and all sorts of accuracy risks. Maybe they can do it, but is it a good use of their time if a cost-effective, robust solution exists? Painting that picture is our biggest challenge with accountants.
LeaseCrunch at Glance:
Headquarters: Milwaukee
Customers: 550+ CPA firms and 17,000+ companies
Website:
