Changes in Lease Accounting Means Stricter Bookkeeping

Software companies don’t often hold many leases because of the nature of their operations.

A software company will have very few concurrent leases, unless it operates retail locations. Despite this, many software companies will soon be pulled into the accounting and finances world as a result of a regulatory change to the guidelines for reporting leases. In a few years times, companies will be required to put all of their active leases on their books. Previously, they were allowed to keep a lease off of the ledger, depending on how they chose to classify it. This change will add a level of transparency and drastically alter bookkeeping best practices processes.

Of course, only those companies with numerous leases (or high value leases, as it is revenue-based, too) will be drastically impacted. Still, this is a vital piece of small business law to be aware of. For more on the change to lease reporting, watch the full video from OpenView Labs featuring David Lewandoski.

Corey O'Loughlin
Corey O'Loughlin
Owner

Corey was a marketing analyst at OpenView from 2010 until 2011. Currently Corey is the Owner of Prep Obsessed and was previously the Marketing Manager at MarketingProfs.
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