Lease Accounting Chart of Accounts

Our Chart of Accounts for lease accounting purposes sets your team up for compliance and management of your journal entries.

Learn how to set up a Chart of Accounts for your Lease Portfolio

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Frequently Asked Questions:

What is a chart of accounts?

A chart of accounts represents all the accounts at a given business. It’s made up of a list of account codes. Each individual code is made up of several segments, each representing a different aspect or department of the business. 

Why is a chart of accounts important for lease accounting?

The chart of accounts is at the center of all bookkeeping, accounting, and financial reporting activities. Creating a thoughtful chart of accounts for your lease portfolio is important — a mistake can have severe repercussions down the road. A well-organized chart of accounts simplifies record keeping, ensures accuracy, identifies metrics and analytics, and helps ensure compliance with policies and regulations. 

What types of accounts are needed for ASC 842 compliance?

For ASC 842, you’ll need accounts for the Right-of-Use (ROU) asset, Lease Liability, Lease Expense, and any Variable Lease Payments to track and report lease transactions accurately.