Managing leases is no longer just an administrative task. Under standards like ASC 842 and IFRS 16, lease obligations must be carefully classified, calculated, and disclosed. For many finance teams, this means a significant lift in technical accounting, reporting, and system administration. Real estate, equipment, and fleet leases can quickly pile up, stretching bandwidth and leaving businesses exposed to audit risk if they don’t have the right processes in place.
That’s where lease accounting services come in. The right partner can handle everything from maintaining the lease accounting system to providing targeted support for controllers. The result is compliance, less pressure on the team, and numbers that management can trust.
What Lease Accounting Services Include
Lease accounting ensures leases are accounted for correctly on the balance sheet and disclosed in financial statements. Lease accounting services go well beyond initial calculations. They cover:
- Classification and measurement – Determining whether leases are operating or finance and recording right-of-use assets and liabilities.
- System administration – Implementing and maintaining a lease accounting platform to centralize contracts, calculations, and reporting.
- Policy design – Establishing accounting policies that align with ASC 842, IFRS 16, or dual reporting needs.
- Ongoing compliance – Tracking modifications, renewals, impairments, and reassessments to keep reporting current.
- Audit-ready disclosures – Producing clear schedules and evidence trails that reduce adjustments and shorten audit cycles.
For companies with large or complex lease portfolios, this is not work that can be handled on an ad hoc basis. It requires structure, expertise, and technology.
Why Lease Accounting Matters
Approaching lease accounting correctly is about more than passing an audit. It directly impacts financial clarity and credibility:
- Accurate reporting – Stakeholders can rely on numbers that reconcile to the ledger and tie to the lease population.
- Stronger audits – Standardized processes and clean documentation reduce audit findings and adjustments.
- Operational efficiency – Automated workflows replace spreadsheets, cutting down on manual errors and delays.
- Informed planning – Visibility into lease obligations helps leaders plan cash flow, capital allocation, and expansion with confidence.
- Investor trust – Consistent, compliant reporting signals discipline and transparency to lenders, boards, and potential buyers.
Common Challenges Companies Face
Even well-staffed finance teams run into challenges when managing leases at scale:
- Spreadsheets breaking under the volume of leases.
- Dual reporting requirements that demand reconciliations across standards.
- Lease modifications and renewals missed during close.
- Lack of bandwidth at month-end or during audit prep.
- System implementations that are underutilized or poorly configured.
A lease accounting services partner helps companies address these issues before they turn into compliance failures or audit delays.
Guerrero Advisors’ Approach
At Guerrero Advisors, we work with businesses that need full-service lease accounting or targeted technical support. We tailor our role to fit your needs:
- Turnkey outsourcing – We manage the entire lease portfolio, including system administration, classification, calculations, and reporting.
- Controller-level support – We step in during close or audit prep to handle technical areas, reconcile balances, and prepare disclosures.
- System implementation – We configure and maintain lease accounting software, ensuring it produces accurate outputs and stays audit-ready.
- Advisory on transactions – We support M&A activity, large-scale lease onboarding, or transitions between accounting standards.
By offering both full-service and specialized support, we give CFOs and Controllers flexibility to fill gaps without overcommitting to permanent headcount.
The Role of Technology
Modern lease accounting requires more than spreadsheets. We help clients deploy and manage lease accounting systems that:
- Track multiple leases across locations and entities.
- Automate liability roll-forwards and amortization schedules.
- Produce reconciliations that tie directly to the general ledger.
- Generate disclosures under ASC 842 and IFRS 16.
- Maintain a clean audit trail of assumptions, judgments, and approvals.
With the right technology in place, compliance becomes repeatable, scalable, and less dependent on manual intervention.
Why Outsource Lease Accounting
Choosing to outsource lease accounting delivers measurable advantages:
- Reduced audit risk – Clean, standardized reporting minimizes findings and speeds up audits.
- Expertise on demand – Access to specialists who know ASC 842 and IFRS 16 inside and out.
- Flexibility – Scale support up during busy periods or major transitions and down when the workload lightens.
- Bandwidth for strategy – Finance leaders spend less time on compliance and more time on growth initiatives.
- Cost efficiency – Avoid the expense of recruiting, training, and retaining a specialized technical team.
Final Thoughts
Lease accounting can feel like a burden, but with diligence and focus, it becomes a source of clarity and confidence. Accurate, compliant reporting supports better decisions, stronger audits, and greater trust with stakeholders. By partnering with Guerrero Advisors, companies get expertise to manage leases effectively, whether they need a turnkey solution or targeted technical support.
FAQs
What are examples of lease accounting services?
Services include classification of leases, calculation of right-of-use assets and liabilities, system implementation and maintenance, disclosure preparation, and ongoing monitoring under ASC 842 and IFRS 16.
When do companies typically need lease accounting support?
Triggers include adopting ASC 842 or IFRS 16, onboarding large portfolios of leases, implementing an ERP or lease system, preparing for audit or financing, or entering new markets with multi-location leases.
How does outsourcing lease accounting help my company?
It ensures accuracy and compliance while reducing audit risk and freeing internal teams to focus on higher-value work. Companies benefit from specialists who manage recurring tasks and complex judgments efficiently.
Do you need to fully outsource to see results?
Not always. Some companies outsource the entire function, while others keep ownership and bring in targeted support for technical areas like close, audit prep, or lease modifications.
How do ASC 842 and IFRS 16 differ and can both be managed?
ASC 842 and IFRS 16 have key differences in lease classification and measurement. Many multinationals must comply with both. With the right processes and systems, outputs can be mapped and reconciled for consistent reporting.