Managing Asset Leases
Not every asset in your business is purchased outright. Many businesses lease equipment such as copiers, vehicles, IT infrastructure, and specialized machinery. AccuArk lets you track lease details alongside the asset record so you have a complete picture of every asset's financial obligations, regardless of whether it is owned or leased.
What Are Asset Leases?
An asset lease is an agreement where your business (the lessee) pays periodic amounts to a lessor (the owner) for the right to use an asset over a defined term. Unlike a purchase, you do not own the asset during the lease period, though some leases include a buyout option that allows you to purchase the asset at the end of the term.
Tracking leases in AccuArk provides several benefits:
- Visibility into obligations — Know exactly how much you owe and when payments are due
- Expiration management — Get alerts before leases expire so you can plan renewals or returns
- Cash flow planning — The Lease Payment Report shows all upcoming payments across your entire leased asset portfolio
- Centralized records — Keep lease terms, contacts, and payment details in the same system as your other asset data
Where to Manage Leases
Lease information is managed on the Lease tab of the asset record. To access it:
- Open the asset in the Asset Details screen (via Assets > Asset Register, then double-click the asset)
- Navigate to the Lease tab
- Fill in or edit the lease fields
The Lease tab is available for all assets, but you only need to populate it for assets that are leased.
Lease Fields
The following fields are available on the Lease tab:
| Field | Description |
|---|---|
| Lessor Name | The company or individual who owns the asset and is leasing it to you. |
| Lessor Contact | Contact information for the lessor (phone, email, or contact person name). Useful for renewal negotiations and service requests. |
| Lease Start Date | The date the lease term begins. |
| Lease End Date | The date the lease term expires. |
| Payment Amount | The amount of each periodic payment (e.g., $500 per month). |
| Payment Frequency | How often payments are made: monthly, quarterly, semi-annually, or annually. |
| Security Deposit | The amount of any security deposit paid at the start of the lease. This is typically refundable at the end of the lease term. |
| Buyout Option | Whether the lease includes an option to purchase the asset at the end of the term (Yes or No). |
| Buyout Amount | If a buyout option exists, the price at which you can purchase the asset when the lease ends. |
| Auto-Renew | Whether the lease automatically renews at the end of the term if no action is taken. |
| Renewal Terms | Free-text field to document the terms of renewal (e.g., “Renews for 12 months at same rate” or “Rate increases 3% annually on renewal”). |
| Is Active | Whether the lease is currently active. Set to No when the lease has ended, been terminated, or the asset has been returned. |
GL Accounts for Leases
Each leased asset can have two GL accounts configured on the Lease tab:
- Lease Liability Account — A balance sheet account (typically under Liabilities) that represents the outstanding lease obligation. This is the total remaining amount you owe under the lease.
- Lease Expense Account — An income statement account (under Expenses) where periodic lease payments are recorded. Each payment debits this expense account.
These accounts allow lease payments to be properly reflected in your financial statements. The Lease Liability Account helps you see your total lease obligations on the Balance Sheet, while the Lease Expense Account ensures lease costs appear on the Profit & Loss statement.
Lease Status
AccuArk automatically calculates the lease status based on the current date and the lease dates:
| Status | Condition |
|---|---|
| Active | Today's date is between the Lease Start Date and Lease End Date, and Is Active is set to Yes |
| Ending Soon | The lease is active but the Lease End Date is within 90 days from today |
| Expired | Today's date is past the Lease End Date |
The Ending Soon status is particularly important because it gives you advance warning to negotiate a renewal, plan for a replacement asset, or budget for a buyout.
Remaining Obligation
AccuArk calculates the remaining financial obligation for each lease:
Remaining Obligation = Payment Amount x Remaining Number of Periods
The remaining number of periods is derived from the current date, the Lease End Date, and the Payment Frequency. For example, if a lease has 8 monthly payments remaining at $500 each, the remaining obligation is $4,000.
This figure appears on the Lease tab and in the Lease Payment Report, giving you a clear picture of your total outstanding lease commitments.
Lease Payment Report
The Lease Payment Report provides a comprehensive view of all leased assets across your business. To access it, navigate to Reports > Assets > Lease Payments.
The report shows:
| Column | Description |
|---|---|
| Asset Name | The name of the leased asset |
| Asset # | The unique asset number |
| Lessor | The name of the lessor |
| Payment Amount | The periodic payment amount |
| Frequency | How often payments are made |
| Lease Start | When the lease began |
| Lease End | When the lease expires |
| Total Paid | The cumulative amount paid to date under this lease |
| Remaining Obligation | The total amount still owed |
| Status | Active, Ending Soon, or Expired |
The report includes summary totals at the bottom showing the total monthly payment obligation, total remaining obligation, and the number of leases in each status.
Use this report for:
- Monthly cash flow planning (know exactly how much goes to lease payments)
- Annual budgeting (forecast lease costs for upcoming fiscal periods)
- Lease renewal planning (identify leases expiring in the next quarter)
- Vendor negotiation (see total spend with each lessor)
Tips and Best Practices
- Set up renewal reminders — The “Ending Soon” status triggers when a lease is within 90 days of expiration. Check the Lease Payment Report or Asset Dashboard regularly so you have time to negotiate renewals or arrange replacements.
- Track all leased equipment — Include every leased asset, even small items like copiers, postage machines, and water coolers. The total cost of leases is often higher than businesses expect, and visibility is the first step to managing it.
- Review the Lease Payment Report monthly — This report is essential for cash flow planning. Knowing your total monthly lease obligation helps you budget accurately.
- Document renewal terms — Always fill in the Renewal Terms field with specific details. When renewal time comes, you will need to know whether rates change, whether the term length differs, and what notice period is required.
- Record security deposits — Security deposits are refundable assets. Recording them ensures you remember to claim them when the lease ends.
- Use the buyout fields — If a lease includes a buyout option, record the buyout amount so you can compare it against the asset's fair market value when the lease ends.