ASC 842 Compliance: Avoid Fines & Save Time

ASC 842 Compliance

Small, medium and large companies will have to change the way they report operating leases and time is running out to comply. Because the real deadline for compliance with the new lease accounting standard ASC 842 is only a few months away for many, all companies should prepare immediately.

In order to report operating leases on time, accurately and completely, a range of company sizes require a comprehensive operating lease accounting solution that saves them time, money, and stress.

New Lease Accounting Standard Overview

As of 2017, any publicly traded company must report operating leases longer than 12 months has to be in the company’s balance sheet. Small, medium and large companies with sizeable operating lease obligations will be the most impacted. However, all publicly traded corporations will be affected in some way.

If your fiscal year end is:You must provide "comparables data" in an Income Statement for the years:
December 31December 31, 2017; 2018; 2019
March 31March 31, 2018; 2019; 2020
June 30June 30, 2018; 2019; 2020
September 30September 30, 2018, 2019, 2020

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To meet the ASC 842 compliance deadline, companies should start to prepare now by:

  • forming a new lease accounting project team that includes authority members among departments involved in the leasing process (e.g.: Finance/Treasury, Lease Administration, IT, Accounting, and the Business Units)
  • becoming familiar with the requirements of ASC 842 and the new lease accounting standards via this white paper
  • adopting a simple to use process that easily organizes operating leasing data in one, central place

The purpose of this whitepaper is to highlight the most cost-effective, efficient and easy-to-use lease tracking platform that not only ensures your company complies with ASC 842 now but also avoids fines and undue stress. The Asset Panda asset tracking platform easily improves the overall organization of leases for companies of any scale to provide simple, customizable reporting.

Finally, this paper offers advice and detailed guidance on how to drive cost savings, return-on-investment (ROI), and account reporting accuracy by improving your existing lease reporting and lease accounting systems as you carry out your implementation plan.

Dedicated Lease Accounting Software

As part of the new lease accounting standards, ASC 842 will be a comprehensive change in the way companies of all sizes categorize and report their assets. These lease accounting changes may also affect how companies are evaluated.

For these reasons, adhering to the new lease standard as well as upholding general accounting practices means making sure your business’s asset tracking management and asset tracking software are able to:

  • differentiate between lease types
  • track related documentation with ease.

This is an enormous task for businesses of all sizes. Whether you’re a small car repair shop with a few thousand dollars in operating leases or the world’s largest corporations like FedEx and Amazon with millions in operating leases, compliance with ASC 842 is required. To avoid penalties, fines and wasting any time, it is important for every business to have the best asset management software available.

When it comes to simple and efficient asset management to cope with ASC 842 compliance, Asset Panda provides asset management software that is easy to use, comprehensive, and accessible from anywhere in the world.

Instead of having expensive asset tracking equipment like many of its competitors, Asset Panda’s asset management software can even be used on mobile for added ease. Asset Panda’s asset management app makes it easier than ever for business owners to organize and account for each and every lease your business has.

Plus, Asset Panda’s software is cloud-based, which means that you don’t have to worry about running out of space or storage for your files and documents. Its expert filing and sorting system also make it easier than ever to keep track of your operating leases and managed funds.  

Asset Panda’s asset management software also makes sure that it’s easier than ever to communicate with your team using a dedicated messaging service that facilitates voice recording, video, images, and data files. Easy communication plus a dedicated log of your team’s assets and deals make ASC 842 compliance easy and fast.

Download the ASC 842 Compliance White Paper

ASC 842 will affect your business. To avoid fines, penalties, and lost investments, it’s vital for every business to organize and keep track of their operating leases. Asset Pandas Asset management and tracking software could save you hours of work and help avoid penalties with its efficient, dedicated, and easy-to-use approach.

To learn more, download our full-length white paper that details everything you’ll need to know about the new lease accounting standards, from all the biggest changes that ASC 842 will bring to how Asset Panda can help make ASC 842 compliance hassle-free.

TO READ THE REST, PLEASE DOWNLOAD WHITE PAPER.

 

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