Most finance teams underestimate the complexity that lies within their lease portfolio. It’s rarely about the standard itself as it’s about data, documentation, and interpretation. Under ASC 842 and IFRS 16, every lease affects balance sheets, disclosures, and decisions. If the process is inconsistent or built around spreadsheets, minor errors can ripple through financials, audits, and forecasts.
Guerrero Advisors helps companies untangle that. We provide technical accounting support or turnkey, end-to-end lease accounting solutions that bring structure and accuracy to every stage of the process. The result is clean data, compliant reporting, and better visibility for decision-makers.
Why Lease Accounting Has Become So Demanding
ASC 842 and IFRS 16 changed how companies view leases. Almost all leases now sit on the balance sheet, which means finance teams must track right-of-use assets, liabilities, and the assumptions behind them. That shift exposed weaknesses in how most companies collect, manage, and maintain lease data.
Controllers and VPs of Accounting face issues like incomplete contracts, embedded leases buried in service agreements, and renewal options that were never captured in models. Many teams still rely on spreadsheets built years ago that can’t handle modifications, variable payments, or discount-rate changes. The standards didn’t create the problem, they just made it visible.
What Effective Lease Accounting Looks Like
Accurate lease accounting isn’t about running software or checking compliance boxes. It’s about knowing where every lease sits on the balance sheet, understanding how assumptions drive expense recognition, and maintaining the discipline to keep it up to date.
An effective lease accounting process should:
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Track all contracts in one consistent format
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Maintain clear documentation for each term, option, and amendment
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Reconcile right-of-use assets and lease liabilities each period
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Tie directly into reporting, forecasting, and audit preparation
That level of structure is difficult to sustain internally without dedicated expertise. It’s why many organizations now outsource the process to specialists who focus on accuracy, control, and scalability.
How Guerrero Advisors Works with Clients
We support finance and accounting teams in two primary ways: technical advisory or full turnkey service.
Technical Accounting Support
For companies with internal accounting staff but who need subject-matter expertise, we handle complex areas such as lease classification, transition entries, and modification accounting. We review calculations, support audit documentation, and advise on policy interpretation.
Turnkey Lease Accounting Service
For organizations that want the process off their plate, we manage the entire cycle — from lease abstraction and data management to monthly reporting and reconciliations. We track additions, terminations, and renewals, and keep everything audit ready. We also manage the lease accounting platform. Our goal is to make lease accounting as seamless as any other recurring process in your close.
In both models, we work alongside internal finance teams and executive leadership to ensure lease data supports accurate reporting and informed decisions.
Why Companies Choose to Outsource Lease Accounting
Outsourcing lease accounting isn’t about reducing headcount; it’s about reducing risk and improving control. Controllers often tell us they spent months cleaning up leases ahead of an audit, only to repeat the same cycle the following year. With an experienced partner, that burden disappears.
Key benefits include:
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Accuracy: Every lease is classified correctly, measured, and disclosed.
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Compliance: Ongoing adherence to ASC 842 and IFRS 16 with updates when guidance evolves.
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Efficiency: Internal teams spend less time chasing data and more time analyzing results.
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Scalability: The process expands easily as new leases are added or corporate structures change.
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Audit Readiness: Documentation, schedules, and reconciliations are always up to date.
Common Pain Points We Help Resolve
Controllers and finance leaders bring us in for a few recurring reasons:
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Lease data scattered across business units with no centralized control
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Embedded leases hidden in supply or service contracts
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Unclear discount-rate policies or inconsistent application
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Confusion over modifications, terminations, or early renewals
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Lack of connection between lease schedules and general ledger reporting
We apply structured processes, strong internal controls, and practical communication across departments to close those gaps.
The Strategic Value of Getting It Right
Lease accounting affects more than compliance. It shapes how leadership evaluates expansion, capital allocation, and cash flow. When lease data is reliable, financial models become more accurate, and scenario planning improves. When it’s not, the numbers lose credibility.
Finance executives who manage leases well gain an advantage. They understand the full cost of occupancy and equipment, see where obligations cluster, and can forecast with confidence. That visibility helps in negotiations, lending discussions, and strategic planning.
Why Guerrero Advisors
Our team combines deep technical accounting knowledge with hands-on experience managing financial reporting and operations. We understand how lease accounting intersects with the broader finance function — from month-end close to performance metrics and forecasting.
We don’t just interpret the standard. We implement it. Whether your team needs short-term technical support or a long-term managed service, we help you stay compliant, audit-ready, and in control.
Clarity, Control, and Confidence in Lease Accounting
Lease accounting doesn’t have to be an annual scramble. With the proper structure, it becomes a predictable part of your close process. Guerrero Advisors helps companies get there by combining precision, consistency, and expertise.
If your team is still juggling spreadsheets or wrestling with ASC 842 entries each quarter, it may be time to bring in a partner who can take that work off your list. Learn more about our Lease Accounting Services or connect with us to discuss how we can support your finance team.
