In the world of lease accounting, numbers don’t just tell a story—they build the entire book. Whether you’re managing five leases or five hundred, the quality of your data is the difference between compliance and chaos. And with evolving standards like ASC 842 putting even more pressure on businesses to get it right, having accurate, well-organized lease data isn’t just a nice-to-have—it’s non-negotiable.
For finance teams, auditors, and decision-makers, poor lease data creates ripple effects across the balance sheet, financial disclosures, and strategic plans. Let’s break down why the right data matters so much—and how businesses are adjusting their systems and culture to meet the demand.
ASC 842 Has Changed the Game
Before ASC 842, many operating leases could live comfortably in the footnotes of financial statements. Businesses tracked them loosely, often outside of ERP systems, and reported them in a fairly relaxed manner. But with the Financial Accounting Standards Board’s update to lease accounting, the rules changed in a big way.
Now, virtually all leases longer than 12 months must appear on the balance sheet as both a Right-of-Use (ROU) Assetand a Lease Liability. That includes property, equipment, vehicles, and even things like data servers or kiosks. To comply, businesses must gather critical lease data points: start and end dates, payment schedules, renewal options, discount rates, and more.
Missing or incorrect data here doesn’t just slow down reporting—it can lead to material misstatements, failed audits, and serious compliance issues. In short, ASC 842 raised the stakes, and the foundation of compliance is reliable data.
confidence in the numbers they’re basing major decisions on.
Software for ASC 842 Lease Accounting
One major reason businesses are getting better at managing lease data is the rise of software for ASC 842 lease accounting. These platforms aren’t just glorified spreadsheets—they’re purpose-built tools designed to automate, standardize, and streamline lease accounting processes.
Platforms like LeaseQuery, NetLease, and Visual Lease offer features like automated journal entries, real-time reporting dashboards, and integration with ERP systems. They centralize lease data, enforce validation rules, and help manage changes over time—so that accounting teams aren’t scrambling every quarter to update reports manually.
These tools also help with documentation. Every assumption, rate, and calculation is tied to a digital trail, making life easier when auditors come knocking. The best software systems don’t just crunch numbers—they create clarity.
Why the Right Data Matters
Lease accounting isn’t just about tracking rent. It involves forecasting future liabilities, classifying leases accurately, calculating present values, and ensuring that expense recognition aligns with usage. To do any of that correctly, you need complete, consistent, and current data.
Take something as simple as a lease term. If your system doesn’t capture options to renew or early termination clauses, you could under- or overstate your liabilities. If you miss a payment escalation clause or an embedded lease component, your ROU asset calculations could be way off.
Even small discrepancies—like a wrong lease start date or missing lease incentive—can distort financial reporting. The right data empowers your finance team to make accurate calculations, ensures auditors can trace decisions back to source documents, and gives leadership
Data and Marketing Strategy: An Unexpected Connection
You might not expect lease accounting and marketing to cross paths—but they do, especially when businesses operate in physical spaces. A marketing team planning to open five new storefronts or run a pop-up campaign in leased spaces needs accurate lease data to budget effectively.
If finance teams are using bad lease data—say, underestimating the cost of a temporary retail lease—it can throw off campaign budgets, ROI forecasts, or expansion strategies. On the flip side, when marketers have access to lease timelines and cost structures, they can align promotions with lease periods, plan more effective rollouts, and avoid investing in locations with pending lease terminations.
Good lease data doesn’t just support the accounting department—it enables smarter planning across the business, including customer-facing teams.
Where to Learn More
Getting lease accounting right takes more than good intentions—it takes the right education and resources. Many accounting firms have released guides and information – but going straight to the IFRS standards site and take a look, its a surefire way to get the right information.. It breaks down technical details and real-world examples in a way that’s digestible for both accountants and business leaders. You can explore it here.
Whether you’re building your lease process from scratch or refining your system for audit-readiness, it’s worth bookmarking.
Final Thoughts: Build the Right Data Culture
The real challenge of lease accounting under ASC 842 isn’t just the math—it’s the mindset. Businesses that treat lease data as an afterthought are finding themselves overwhelmed. Those that treat it like core financial infrastructure are building long-term resilience.
That means establishing strong data entry processes, cross-checking lease abstracts, and using software that enforces data discipline. It means marketing, legal, operations, and finance teams working from a shared data source. And it means understanding that every decision tied to a lease—whether signing a new contract or modifying an old one—starts with good information.
Because when the numbers matter as much as they do in lease accounting, the right data isn’t just important—it’s everything.
