LeaseCrunch, a cloud-based lease accounting software company, announced the launch of LeaseCrunch Verify, an application that assists CPA firms in reducing the time and expense in auditing their clients’ lease accounting.
LeaseCrunch Verify allows CPA Firms to add all client accounts from a single dashboard and immediately enter and test a sample size of their leases. Firms can also add the selected sample of leases to their “Prepared By Client” list and invite clients to enter the leases directly in their own secure account.
With LeaseCrunch Verify, firms can export the Amortization Schedule to audit:
- Lease asset at the beginning of year and end-of-year;
- Short term and long-term lease liability at beginning of year and end-of-year;
- Amortization expense;
- Interest expense;
- Variable expenses; and
- Modification or re-measurement calculations for revised leases.
Using the LeaseCrunch Verify Automated Amortization Schedules, firms can quickly assess whether incorrect client inputs will require an adjusting entry. Inputs that frequently require analysis include:
- Client entered a generic discount rate;
- Client didn’t include an option (e.g., renewal, termination, purchase);
- For lease assets that will be purchased at the end of the lease, client used the Lease Asset life equal to the term;
- Client forgot to combine lease and non-lease components for a given lease; and
- Client forgot to include a payment/receipt as required by the applicable standard.
“Auditing clients’ lease accounting is time-consuming and complex,” said LeaseCrunch CEO Ane Ohm. “In addition, verifying inputs from lease contracts into clients’ lease accounting tools and auditing the accuracy of the calculations can take hours and sometimes even days. LeaseCrunch Verify reduces the hours required to audit the lease standard, giving CPA firms better economies of scale.”