For the management of leasing agreements and reporting in accordance with IFRS 16, you will notice over time that Excel is not optimal and not completely reliable. In this article, you can read what opportunities you have with an IFRS 16 software, and why you should replace Excel with IFRS 16 software.
Why replace Excel with IFRS 16 software
The handling of lease agreements according to IFRS 16 can be a complicated process, yet there are solutions to streamline and ensure compliance with the legislation. It must be easy to ensure the correct accounting of IFRS 16, this also applies to the collection of information and data from the entire group.
In an article in Auditing and Accounting by Terje Glesaaen and Serge Fjærvoll, it appears that businesses have many people and functions involved in IFRS 16 handling. It is also stated that most companies use external software for handling, but that few have a ready-made solution.
IFRS 16 handling with Excel
Leasing is a widely used option for financing an asset. This is a contractual agreement between two parties, where one party is given the right to use the asset in exchange for periodic payments. The right of use is therefore transferred from the lessor to the lessee. For listed companies, these agreements must be accounted for according to IFRS 16, but can this be done in Excel?
Microsoft Excel can be used for handling IFRS 16, but makes the processes far more manual and time-consuming than with software. The financial reporting cannot be guaranteed by manual work either, as there are many places where errors can occur.
IFRS 16 software
In handling the lease agreements, it is important to identify the lease agreements, if this block consists of many different agreements – the complexity increases. Most advisers and software suppliers therefore recommend that businesses replace Excel with IFRS 16 software such as registration of contracts and the information to make calculations.
The advantages of software for handling IFRS 16 are many, but the most important in accounting include accurate reporting, streamlining of processes and optimized storage of contracts.
In ShareControl IFRS 16, the user can highlight changes and display leases in a way that provides new opportunities to follow up and improve efficiency. With pre-set calculation models that have facilitated full control and tracking of the entire bookkeeping process, this is a good solution for the group.
Share Control’s solution for IFRS 16 handling is installed on the user’s Microsoft 365 account, so that all data is stored internally in the company and not with a third party. This ensures optimal storage of the contracts, as these are on their own platform – and you never lose access, even if you were to change supplier in the future.
Read also: Implementation of IFRS 16 before listing
With automatic calculations built into the system, you can use IFRS 16 software to streamline most reports. At the same time, accountants can ensure accurate reporting through the system’s built-in guidance on determining rent classification.
Share Control IFRS 16
We help make compliance with IFRS 16 lease accounting standards easy. Save time and ensure accurate financial reporting with our user-friendly IFRS 16 system.
- Saves time
- Provides control
- Provides follow-up
- Provides measurable goals
- Improves performance
Share Control IFRS 16 handles all calculations and you get reports that you can compare and post in the different periods. All calculations are done automatically, which is a big advantage. You can feel confident that the numbers will be correct. Our message is therefore clear, you should replace Excel with IFRS 16 software.
Share Control offers a solution that is very easy to install and fully compatible with Microsoft Office 365 and your ERP systems. We are happy to tell you more about how we can facilitate your accounting in a long-term and sustainable way.