Regardless of your business model, strategy, or values, cost-cutting and process optimization are essential. Accounting is one area where efficiency and accuracy are especially important. While it might seem logical to cut costs by using Excel spreadsheets for lease accounting, real-world requirements like complex financial reporting and lease payment management call for a more advanced solution.

Dedicated lease accounting software simply has the edge. Compared to Excel (often referred to as a lease calculator), purpose-built tools like SOFT4Lessee deliver far greater value. Here are 7 key reasons why lease accounting software outperforms Excel.

1. Lease accounting software is already fully developed

If you're running a very small business with fewer than 10 leases, an Excel calculator might suffice - for a while. But companies serious about compliance and efficiency should consider how much time it takes to develop a fully functioning Excel solution. You need to manage calculations like lease liability, account for variables, ensure visual clarity, and deal with difficult data imports.

Any modern IFRS 16, ASC 842, or AASB 16 software solution like SOFT4Lessee comes ready to handle all of this. These tools are flexible and user-ready from day one. Even the best Excel templates require constant updates to stay current, which becomes a major time sink. Purchasing a software license is almost always more cost-effective in the long run.

2. Data flow management

Excel makes it difficult to track who entered what, when, or why. That might be manageable if everything goes perfectly, but real accounting work requires constant review, adjustments, and collaboration. Without clear tracking and audit functionality, Excel becomes risky.

Modern lease accounting software like SOFT4Lessee includes built-in audit trails and access controls, making collaboration and change tracking simple and secure.

3. IFRS 16, AASB 16, and ASC 842 software covers multiple needs

Generating invoices, financial statements, and reports for audits, banks, investors, or regulators is nearly impossible to do properly in Excel alone. You would need dozens of templates and formulas just to get close to professional results.

With SOFT4Lessee or similar tools, reporting and document preparation are streamlined. Most actions - from generating reports to exporting data - can be done with one click or through user-friendly workflows.

4. Editing data inputs on the go

Accounting files can be large, especially when stored on a shared network. Editing an Excel file from a mobile device is often slow, frustrating, and unreliable. Many accountants won’t even try unless they’re at their desk.

In contrast, modern accounting software like SOFT4Lessee is optimized for mobile and tablet use. Remote access to business-critical data is no longer optional - it's a standard expectation.

5. Lease payments and financial data in one place

Some companies try to manage lease payments in Excel by using multiple spreadsheets - one for salaries, one for lease payments, and others for various operations. That creates unnecessary complexity.

Accounting software centralizes this information. Tools like SOFT4Lessee are designed to manage all lease-related data in one user-friendly interface, saving time and reducing the risk of errors.

6. Dedicated software allows task assignment and offers interactivity

Unlike Excel, professional accounting software supports collaboration. One of Excel’s biggest drawbacks is the lack of task assignment and limited interactivity.

SOFT4Lessee allows you to assign tasks, track completion, and notify responsible team members. This functionality is essential for efficient workflows and accountability. Regardless of the accounting standard (AASB 16, IFRS 16, or ASC 842), this interactivity helps your team stay productive and organized.

7. Data import from external sources

Manual data entry increases the chance of mistakes. While Excel allows for copy-pasting, formatting and cleanup take time and can lead to errors.

Lease accounting software simplifies data imports. SOFT4Lessee supports importing from Excel files, XML documents, and web-based sources. It also integrates with many financial and ERP systems, making transitions from Excel or other tools smoother and faster. This is especially important when migrating to a professional solution and looking to minimize downtime or disruptions.

Final thoughts

While Excel may seem like a familiar, budget-friendly choice, it simply can’t match the functionality, flexibility, and compliance readiness of a dedicated solution like SOFT4Lessee. For companies that value accuracy, efficiency, and scalability in their lease accounting, specialized software is the clear winner.