Are You Happy With Your Lease Accounting Software and Process?

ARTICLE | September 17, 2025

As December 31 approaches, finance teams across the country are preparing for their annual closing processes. While you’re checking off items on your year-end checklist, here’s a question worth considering: Is your lease accounting process truly serving your organization’s needs, or is it creating more work and issues than it eliminates?

The pressure of ASC 842 and GASB 87/96 compliance doesn’t disappear after initial implementation. In fact, as organizations grow and lease portfolios become more complex, many teams discover their current solutions aren’t meeting expectations. If you’re finding yourself wrestling with increasingly cumbersome processes, you’re not alone.

The Warning Signs Your System is Falling Short

Organizations often outgrow their lease accounting systems without realizing it. The first red flag? A return to spreadsheets.  Many companies find their staff using supplementary spreadsheets to handle complex modifications, multi-currency transactions, or specialized lease types that their lease software can’t accommodate effectively.

Another telltale sign is when monthly accounting and reporting become a time-consuming ordeal. If generating standard disclosure reports, roll-forwards, or journal entries requires manual intervention and feels like navigating a maze, your system isn’t keeping pace with your needs.

Perhaps most concerning is when lease modifications turn into manual nightmares. Business changes are inevitable, but if every lease amendment, extension, or termination sends your team scrambling to figure out how to do the update, you’re facing a scalability problem that will only worsen over time.

The Hidden Costs of Inadequate Systems

The impact extends far beyond daily frustrations and wasted time. During audit season, disorganized data and manual processes can significantly increase audit fees as external auditors spend extra billable hours verifying calculations and tracing supporting documentation. More importantly, the management of inefficient systems contributes to team burnout and can lead to costly errors that require restatements.

When skilled finance professionals spend their time on manual data entry and reconciliation rather than strategic analysis, organizations miss opportunities to optimize lease terms, accurately forecast expenses, and provide meaningful insights to leadership. Your lease data should be a strategic asset, not an administrative burden.

Modern Solutions for Growing Organizations

Today’s leading lease accounting systems leverage automation and AI to transform how organizations manage their lease portfolios. These technologies can automatically extract critical data from lease agreements, reducing manual abstraction time. Advanced systems also handle complex scenarios, such as multi-currency reporting and intricate modification calculations, without requiring extensive manual intervention.

The most effective solutions create centralized databases that house all lease documents, assumptions, and calculations in one accessible location. This centralization not only streamlines day-to-day operations but also creates a transparent audit trail, making examinations smoother and less stressful for everyone involved.

The Insero Advantage: Expertise Without the Overhead

At Insero, we understand that many organizations find it challenging to maintain the technical expertise required for complex lease accounting compliance while managing their core business operations. Our outsourced lease accounting solutions provide access to both specialized knowledge and top-rated software systems without the overhead of building these capabilities in-house.

As one of our outsourced clients, you gain access to lease accounting technology that creates required journal entries, maintains comprehensive audit trails, and houses all key documents and assumptions in a centralized database. This approach ensures not only compliance but also provides the strategic insights your organization needs to make informed decisions about its lease portfolio.

Our team brings years of experience helping growth-focused organizations navigate complex accounting challenges. We don’t just process your lease transactions; we provide the proactive insights and strategic guidance that help you optimize your lease portfolio and improve your financial reporting processes.

As you prepare for year-end and look ahead to 2026, consider whether your current lease accounting approach is positioning your organization for success and growth or simply maintaining the status quo. The right partnership can transform lease accounting from a compliance burden into a strategic advantage.

Contact our lease accounting specialists today to discuss how Insero’s outsourced solutions can streamline your processes, enhance your reporting capabilities, and provide the expertise you need to navigate the complexities of modern lease accounting with confidence.