Insights from the 2025 Lease Accounting Software Market Survey

Survey respondents and methodology

Key findings

1. Frustrations with current IFRS 16 compliance processes
   • Respondents highlighted several frustrations with their current IFRS 16 compliance processes, including the complexity and time-consuming nature of manually tracking and managing lease data across multiple contracts, high compliance costs, and the inflexibility of certain software and spreadsheet-specific approaches to capture different transactions. These pain points underscore the need for more efficient and user-friendly solutions.
2. Widespread use of lease accounting platforms
   
   • 37% of businesses use lease accounting software to manage IFRS 16/AASB 16 compliance, while 26% still rely on Excel or other spreadsheet software. This indicates a significant adoption of specialised software, though a notable proportion of businesses continue to use traditional, non-automated methods.
3. Barriers to using leasing software
   • Cost remains a significant barrier to lease accounting software adoption, with 48% of respondents citing it as a reason for not upgrading. Many businesses also believe their current systems are satisfactory, with spreadsheets deemed reliable and auditors confirming compliance.
4. Drivers of software adoption
   • The top driver for adopting leasing software is simplicity of use, followed by its ability to keep auditors happy, accuracy of data, and the strategic insights it provides. Cost and value for money ranked as less critical in driving adoption decisions.

A simple, user-friendly interface is an important factor in the performance of a lease accounting platform.

What clients should look for in lease accounting tools

1. Ease of use
   • Prioritise lease accounting tools that are user-friendly and intuitive. The software should simplify the compliance process and reduce the time and effort required to manage leasing data. Look for tools with a clean interface and straightforward navigation.
2. Accuracy and compliance
   • Ensuring compliance with IFRS 16/AASB 16 is crucial. Choose software that accurately tracks and manages lease data, provides reliable calculations, and generates compliant reports. The ability to keep auditors satisfied is a significant advantage.
3. Cost-effectiveness
   • While cost is a barrier for many businesses, it's essential to consider the long-term benefits and savings on internal resources dedicating their time to generating compliant reports that specialised software can resolve. Clients should look for tools that provide good value for money, demonstrating a clear return on investment through efficiency gains, time freed up for your people to focus on adding value to your business, and reduced compliance costs.
4. Flexibility and customisation
   • Lease accounting tools should be flexible enough to handle various types of lease transactions and adapt to the specific needs of your business. Customisable features and the ability to integrate with existing financial systems can enhance the tool's utility and make for a smoother transition.
5. Strategic insights
   • Beyond compliance, lease accounting software should offer strategic insights that help your business make informed decisions. Look for tools that provide detailed analytics, forecasting capabilities, and comprehensive reporting to support your strategic planning.
6. Support and training
   • Adequate support and training are essential for maximising the benefits of lease accounting software. Choose providers that offer robust customer support, comprehensive training programs, and resources to help users get the most out of the software.
7. Positive market perception
   • Considering the market perception of the software can be helpful. Tools that are well-regarded for their accuracy, simplicity, and ability to satisfy auditors are likely to be reliable choices. Client testimonials and case studies can provide valuable insights into the software's performance. Speak with your auditor, or a specialised consultant from a leading accounting firm, for a recommendation on a lease accounting software solution that's best for your business.

How LOIS can help

1. High market awareness and positive perception
   • LOIS has a high awareness rate of 90% among survey respondents, with 35% having received a proposal or quote. It is perceived positively for its accuracy, simplicity, and ability to keep auditors happy.
2. Ease of use
   • LOIS is designed to be user-friendly, making it easy for businesses to manage their lease accounting processes. Its intuitive interface simplifies compliance and reduces the time and effort required to track and manage complicated lease data.
3. Accuracy and compliance
   • LOIS ensures accurate tracking and management of lease data, providing reliable calculations and generating reports that help businesses stay compliant with IFRS 16/AASB 16 standards, keeping auditors satisfied.
4. Strategic insights
   • LOIS offers detailed analytics and comprehensive reporting capabilities, providing insights that help businesses make informed decisions. This supports strategic planning and enhances the overall utility of the software.
5. Support and training
   • Quadrent offers robust customer support and comprehensive training programs for LOIS users, ensuring you can maximise the benefits of the software and receive assistance whenever you need. All of our lease accounting specialist consultants are Chartered Accountants, so they can help you find the support you really need to make LOIS work for your business.
6. Sustainability commitment and B Corp certification
   • Quadrent's commitment to sustainability, through initiatives like the Quadrent Green Lease and B Corp certification, promotes the reuse and redistribution of end-of-lease corporate assets, significantly reducing e-waste. This adds an additional layer of value for LOIS clients, as well as businesses looking to enhance their sustainability efforts.