ASC 842 Software: Simplify Lease Accounting Compliance

Navigating ASC 842 Compliance: The Need for Software Solutions

With the introduction of ASC 842, businesses are required to comply with new lease accounting standards that demand greater transparency in lease reporting. This accounting standard, issued by the Financial Accounting Standards Board (FASB), impacts how leases are classified, reported, and disclosed in financial statements.

For businesses with multiple leases, managing compliance manually can be overwhelming. That’s where ASC 842 software comes into play—offering automated tools to simplify compliance, improve accuracy, and reduce risk.

This guide explores what ASC 842 software is, its key features, the best options available, and tips for choosing the right solution for your business.

What is ASC 842?

ASC 842 is the updated lease accounting standard that requires businesses to recognize most leases as assets and liabilities on their balance sheets. This rule applies to both operating leases and finance leases, fundamentally changing how companies account for leased equipment, real estate, and more.

Why ASC 842 Compliance Matters

Failing to comply can result in:

• Financial statement inaccuracies.
• Audit complications.
• Regulatory fines and penalties.

What is ASC 842 Software?

ASC 842 software helps companies automate lease accounting processes to comply with ASC 842 guidelines. It provides tools for tracking lease terms, calculating right-of-use (ROU) assets and lease liabilities, generating required disclosures, and integrating with ERP systems.

Key Features of ASC 842 Software

• Lease Data Centralization – Stores all lease agreements in a secure, searchable repository.
• Automated Calculations – Calculates present value, ROU assets, lease liabilities, and amortization schedules.
• Disclosure Reports – Generates required footnote disclosures for financial statements.
• Compliance Tracking – Alerts for renewal dates, modifications, and reassessments.
• Audit Trail & Documentation – Maintains complete records of changes, ensuring audit readiness.
• ERP & Accounting Integration – Syncs with accounting software to ensure accurate reporting.

Benefits of Using ASC 842 Software

• Reduce Manual Work: Automate complex lease calculations and reporting.
• Enhance Accuracy: Minimize errors with consistent calculations and templates.
• Ensure Timely Compliance: Stay ahead of reporting deadlines with automated reminders.
• Improve Visibility: Gain real-time insights into lease obligations across your organization.
• Simplify Audits: Provide auditors with complete, organized lease data.

Best ASC 842 Software in 2025

1. LeaseQuery

Best for: Businesses needing specialized lease accounting automation.

Key Features:

• Centralized lease repository.
• Automated compliance reports.
• Real-time policy updates for ASC 842.

Pricing: Custom quotes based on lease portfolio size.

2. CoStar Real Estate Manager

Best for: Companies with large real estate lease portfolios.

Key Features:

• Real estate-specific lease management.
• ASC 842, IFRS 16, and GASB 87 compliance.
• Integration with ERP and financial systems.

Pricing: Custom pricing.

3. Visual Lease

Best for: Mid-sized businesses with diverse lease types.

Key Features:

• Lease accounting and administration.
• ASC 842 and IFRS 16 compliance tools.
• Role-based access and approval workflows.

Pricing: Starts at $500/month.

4. Trullion

Best for: Businesses wanting AI-powered lease data extraction.

Key Features:

• AI document parsing for lease extraction.
• Real-time ASC 842 compliance tracking.
• Seamless integration with accounting software.

Pricing: Custom pricing.

5. EZLease

Best for: Small businesses needing affordable lease accounting compliance.

Key Features:

• Fast onboarding and data imports.
• Automated lease classification and calculations.
• One-click financial disclosures.

Pricing: Starts at $2,000/year.

Comparing Top ASC 842 Software

Software	Best For	Key Strengths	Starting Price
LeaseQuery	Specialized Lease Accounting	Compliance automation & reporting	Custom
CoStar	Real Estate Leases	Real estate focus, ERP integration	Custom
Visual Lease	Mid-sized Businesses	Diverse lease tracking & compliance	$500/month
Trullion	AI Lease Extraction	Document parsing & automation	Custom
EZLease	Small Businesses	Easy setup & affordability	$2,000/year

How to Choose the Right ASC 842 Software

To select the best software for your business, consider:

1. Portfolio Size & Complexity – Businesses with more leases need stronger automation.
2. Industry Focus – Real estate-heavy companies need specialized tools.
3. Integration Needs – Ensure compatibility with existing ERP/accounting systems.
4. Budget & ROI – Balance cost with compliance risk mitigation.
5. Ease of Use & Support – User-friendly software ensures smoother adoption and quicker setup.

Empowering Your Lease Accounting: Final Thoughts on ASC 842 Solutions

ASC 842 compliance is essential for accurate financial reporting and audit readiness. By using the right ASC 842 software, businesses can automate compliance tasks, reduce errors, and maintain transparency in lease obligations.

Whether you manage a handful of leases or a global portfolio, solutions like LeaseQuery, Visual Lease, and Trullion can simplify the process, ensuring timely and accurate compliance with ASC 842 standards.