Chicago-based Crowe (FY20 net revenue of $983.3 million) has announced that Microsoft has licensed the Crowe Lease Accounting Optimizer solution for Microsoft Dynamics™ 365 Finance.
Crowe developed the technology to help companies manage their lease accounting processes efficiently and comply with the rules. Many companies that lease property or equipment are now required to record leases on their balance sheets to comply with FASB’s new lease accounting standards.
“Crowe used their deep accounting experience and leading financial technology development experience to create a truly useful tool that allows Microsoft Dynamics 365 Finance users to automate their lease accounting processes while working in the same business management platform that they’re already accustomed to,” says Georg Glantschnig, general manager of Dynamics 365 Finance at Microsoft.
The product streamlines the accounting process by:
- Calculating the present value of discounting cash flows of future minimum lease payments
- Measuring the right-of-use asset and lease liability initial recognition
- Calculating the subsequent measurement journal entries for the right-of-use asset and lease liability
- Performing multibook accounting under parallel standards
- Generating modification journal entries and schedules automatically after lease modifications
- Creating a full suite of reports to help satisfy disclosure requirements
The product was developed through the Crowe innovation fund. Each year, Crowe invests about 1% of firm revenue in new product development funding to expand on ideas brought forward by its people.