Lease accounting software streamlines the management of lease agreements by centralizing financial and compliance data in one platform. This advanced technology not only enhances efficiency but also aids businesses in adhering to complex accounting standards such as FASB ASC 842 and IFRS 16.
We’ve examined 20+ providers across 7 metrics to rank the best lease accounting software. Our ratings take into account factors such usability, support, scalability, security, value, performance, and the range of features offered. All ratings are determined solely by us, enabling you to make the most informed decisions for your business’s financial management.
1 LeaseQuery - Best Overall
LeaseQuery is a lease accounting software solution. Essential features include error-free amortization schedules and journal entries, critical date alert setting, and data entry validation. Role-based access and locked journal entries keep your company compliant with FASB ASC 842, IFRS 16, and GASB 87.
Seamlessly integrate with any ERP to improve your accounting intelligence and reporting.
2 Visual Lease - Best for Real Estate Management
Visual Lease is an enterprise lease accounting administration software is designed for managing real estate and equipment leases. This web-based solution integrates with ERP systems to give you complete control over your business operations.
Manage and maximize every asset in your portfolio all in one place by using Visual Lease to maintain compliance with ASC 842, GASB 87, and IFRS 16 to be audit-ready at all times.
3 EZLease - Best for Long-Term Compliance
EZLease provides fast, simple, and easy lease accounting software for ASC 842, GASB 87, GASB 96 and IFRS 16 . Designed to ensure long-term compliance for lessees and lessors across equipment and real estate assets, EZLease manages and automates the lease data management, accounting, and reporting processes.
With over 15 years of implementations across private, government and public organizations of all sizes, EZLease has no implementation costs and guarantees long-term compliance in hours.
What is Lease Accounting Software?
Lease accounting software keeps track of the income and expenses primarily involved in equipment and property rental businesses. The accounting system will track payments made, send invoices, and create financial reports. These solutions are most commonly used by real estate professionals and equipment rental companies that need to ensure their financial records comply with FASB and IASB standards.
Staying in line with the new FASB and IASB standards requires complex calculations to determine which leases need to be included on the balance sheet. Lease accounting software streamlines these calculations, ensuring you’re reporting in compliance with each standard. Having an up-to-date solution will keep you compliant even as the standards change over time.
Many lease accounting solutions can also store lease data. This allows you to keep tabs on lease terms, renewal deadlines, and lessee contact and payment information.
Features of Lease Accounting Software
Feature | Description |
---|---|
Financial Accounting | Record rental income and business expenses. |
Billing and Invoicing | Create and send invoices for rental payments. Set up recurring invoices for regular payment installments. |
Financial Reporting | Create reports in accordance with ASC 842 and IFRS 16 standards. |
Lease Management | Store lease data including terms, asset descriptions, and lessee information. |
Financial Management in Lease Accounting Software
Lease accounting software manages the financial side of your rental business. The system will keep track of all rental income. Payment schedules can be set up to be automatically withdrawn from the customer’s bank account or charged to a credit card on a certain date. Additional charges can also be added for security deposits and late fees.
Lease accounting software also assists with budgeting. Rental businesses need to track expenses like bank fees, maintenance and repair expenses, legal fees, and more. The system will also track revenue from rental payments, late fees, and security deposits. Compare the estimated budget to your actual financials during a set period to ensure you’re making a profit and meeting your financial goals.

Financial Reporting Standards in Lease Accounting Software
Your lease accounting solution will ensure existing leases and new leases are reported correctly in accordance with domestic and international accounting standards. Two of the most recognized standards include the FASB ASC 842 and IFRS 16.
FASB ASC 842
The Financial Accounting Standards Board (FASB) released an update to ASC 840 known as ASC 842. Lease accounting systems help create ASC 842 compliant reports including amortization of right-of-use (ROU) assets, cash flows, interest on lease liabilities, variable lease cost, complete disclosures reports, and more.
Lease classification is very similar in the new FASB ASC 842 standard compared to ASC 840.
Both standards classify leases as either a financial lease (capital lease) or an operating lease. Previously, operating leases were not required to be recorded on the balance sheet. In ASC 842, any lease that has longer than a 12-month term limit needs to be reported on your balance sheet–including operating leases.
Defining an operating lease and capital lease under ASC 842:
Operating Lease | Capital Lease | |
---|---|---|
Asset ownership is transferred to the lessee at the end of the term. | No | Yes |
Option to purchase the asset for under fair market value after the lease term ends. | No | Yes |
The lease term is a major part of the economic life of the leased asset. | No | Yes |
The minimum lease payments are a substantial part of the asset’s fair market value. | No | Yes |
Public companies were required to implement the new standards from ASC 842 in December 2018, while private companies follow suit on December 15, 2019.

IFRS 16
IFRS 16 is a new standard from the International Accounting Standards Board (IASB). Lease accounting software ensures your reports are compliant with these international standards. Under IFRS 16, assets valued over $5,000 and lease terms over 12 months must be included on the balance sheet. However, short-term leases and low-value assets need to be still be disclosed.
The IFRS 16 lease standard went into effect for reporting periods starting on or after January 1st, 2019. This standard replaced IAS 17 to improve balance-sheet transparency. Previously, many leases that were considered operating leases could be left off of the balance sheet, while finance leases were required. IFRS 16 treats almost all leases as finance leases and virtually removes lease classification.

Portfolio-Level vs. Asset-Level Lease Accounting
Lease accounting software can record transactions on a portfolio-level or asset-level basis. In portfolio-level lease accounting, transactions for a single lease contract are reported as a whole. This type of accounting is ideal for leases with only one asset per contract.
Asset-level lease accounting keeps track of every individual asset stated on a contract. For example, one lease contract that contains multiple segments or offices within a building. Both ASC 842 and IFRS 16 require each asset within a lease contract to be included in financial statements.
Lease Management Software
Lease accounting software often integrates with lease management and lease administration software to form an all-in-one solution. The lease management system helps you keep track of and maintain lease portfolios, tenants and customers, documents, deadlines, and more.
Lease data stored within the system can be updated easily. Important information like lease term length, rate, expiration, and tenant or customer information is stored within the solution. Lease contracts and other important documents can also be added, so you can easily pull them up as needed.
The system will automatically notify you of upcoming deadlines and other important dates. For example, if a payment is missed or a lease contract is coming up for renewal, the system will send you a notification.
Lease Accounting vs. Lease Management
Many solutions also include lease management as part of the accounting system. Lease accounting software allows you to create reports for public financial disclosures, as well as record income and expenses. Lease management software, on the other hand, tracks lease details and automates lease renewals, termination processes, and buyouts. Having both lease accounting and lease management in one system ensures you meet all accounting standards and keeps track of lease terms in one place. Your lease management system can automatically update the accounting side when leases are signed, renewed, or ended.

Types of Leases to Manage with Lease Accounting Software
Lease accounting software is beneficial to anyone that rents out their assets. Some leases you can manage with lease accounting software include:
Residential and Commercial Real Estate Leases
Real estate lease accounting software keeps track of rental income from commercial properties, apartments, duplexes, and other property rentals. The system will also store lease agreements, so you can keep track of agreed-upon terms. Lease software will also notify you of any late payments, termination of contracts, and lease renewal deadlines.
All-in-one property management software can also be used for either commercial or residential real estate leasing. These solutions handle accounting, tenant management, work order management, and more.
Equipment Leases
Advanced lease management software can have features like GPS tracking and asset management. This allows you to track the location of your equipment in real-time. The condition of your equipment is also stored within the system. Knowing when your equipment was serviced and important upcoming dates for preventative maintenance will keep your equipment running longer.
Industry-specific software is also available–these include equipment rental software and fleet management software. These solutions feature lease management, accounting, asset tracking, and more.
Employment and Service Contracts
Lease accounting software helps businesses keep track of income and expenses from contracted services. For example, small to medium-sized businesses sometimes contract out work through a professional employer organization (PEO). The PEO, also known as an employee leasing company, contracts out employees to help businesses with tasks like training, payroll processing, recruiting, and performance management.
The lease accounting software will track payments from the business for services rendered, as well as contractual agreements. If money was spent on additional equipment for the service, those costs can be factored into the total cost for the final invoice.