Lease accounting under ASC 842 and IFRS 16 has become both a compliance priority and cost center for finance and accounting teams. For controllers, CFOs, and lease accounting professionals managing high-volume lease data, complex calculations, and evolving compliance standards – the question is no longer if automation is needed. It’s how to drive real ROI from AI for lease compliance.
AI-powered lease accounting software is proven to increase accuracy and reduce time-to-close, delivering measurable outcomes that include: lower costs, minimized risk, and faster audits.
In this article, we explore the ROI of AI and automation for ASC 842 and IFRS 16 compliance, and how modern tools like Trullion help you reduce lease compliance costs while unlocking strategic value.
The hidden costs of manual lease accounting: eroding your bottom line
Manual lease accounting slows teams down while draining resources, increasing risk, and killing motivation. Here’s how outdated workflows chip away at profitability:
1. Person-hours and labor costs
ASC 842 and IFRS 16 compliance demand extensive lease data entry, schedule building, and review. With accounting automation, finance teams spend hundreds of hours on repetitive tasks that AI can handle in seconds.
2. Error risks and financial restatements
Manual inputs increase the chance of errors, and the stakes are high. In November 2024, Symbotic Inc. (NASDAQ: SYM) missed its annual filing due to accounting errors around internal controls and improper revenue recognition. This led to a significant drop in its stock value – with shares plummeting 36%, erasing approximately $7.9 billion from its market capitalization. The company also adjusted its financial guidance, lowering its revenue and EBITDA expectations for the upcoming quarter. Despite previous strong performance, accounting errors shook investor confidence and led to a substantial decline in the company’s valuation and reputation.
3. Audit expenses
Disorganized lease data and inconsistent reporting slow down audit timelines, raising costs and straining internal resources.
4. Non-compliance penalty risks
IFRS 16 Lease accounting guidance is specific and nuanced. Missing lease reassessments or misclassifying lease types can result in regulatory penalties. With lease compliance AI, these costs are completely avoidable.
5. Missed strategic opportunities
Every hour spent managing spreadsheets is an hour not spent on cash flow forecasting, lease portfolio optimization, or financial planning. The opportunity costs of manual lease accounting stack up significantly.
How AI in accounting software delivers tangible financial benefits
AI in lease accounting turns a cost center into a cost-saving engine. Let’s break down the return on investment that AI accounting tools can deliver.
- Automation = Time savings = Reduced labor costs. Tools like Trullion harness AI to automate lease data extraction, classification, and schedule generation. This significantly reduces the number of person-hours required, resulting in thousands of dollars in labor savings.
- Enhanced accuracy = Fewer errors = Avoided restatement costs. AI precisely interprets lease terms, eliminating costly human errors. The result: compliance accuracy and complete peace of mind during audits.
- Streamlined processes = Faster audits = Lower audit fees. Audit prep is faster with real-time data, standardized reports, and a built-in audit trail. This directly lowers the cost of achieving ASC 842 and IFRS 16 compliance.
- Proactive compliance = Lower risk = Avoided penalties. Avoid the penalties and panic. AI tools keep teams ahead of deadlines and help ensure adherence to shifting compliance standards.
- Data-driven insights = Smarter decisions = Financial performance. AI surfaces lease trends, term risks, and optimization opportunities – giving teams the insights that improve financial decisions and bottom-line impact.
Case study: AI in lease accounting compliance
Claroty, a global leader in cybersecurity for the industrial and healthcare industries, faced increasing complexity in managing lease compliance across regions like the US, UK, Israel, and Singapore. With ASC 842 requirements adding further pressure, the finance team needed a more innovative, scalable solution.
After evaluating multiple platforms, Claroty chose Trullion. The result: 90% time savings, full elimination of manual Excel workflows, and a streamlined audit process.
Beyond automation, Trullion also enhanced accuracy, compliance confidence, and improved cash flow forecasting. Auditors now trust and navigate the system independently. For Claroty, the ROI was clear: time saved, risk reduced, and heightened strategic focus.
“With all the leases we manage, Trullion has saved me over a week’s worth of work – cutting it down to just a few minutes,” said Ron Kariv, Controller at Claroty.
Schedule a demo to see how Trullion’s AI platform can save you time and money.
AI features that drive strong ROI in lease accounting compliance
Let’s break down the AI lease accounting features that power ROI:
- AI data extraction. Reduces time spent on manual entry. No more digging through lease PDFs.
- Automated lease term interpretation. Automatically recognizes clauses, classifications, and renewal options – lowering risk and saving time.
- AI calculation engines. Instantly generates accurate amortization schedules and journal entries for ASC 842 and IFRS 16.
- Real-time compliance monitoring. Stay ahead of reassessment triggers, renewals, and regulatory changes – and protect your business from penalties.
- Comprehensive audit trails. Enable efficient, confident audits with built-in documentation and transparent reporting.
For additional compliance readiness resources, check out: NRTA Budgeting for Lease Compliance
Choosing the right AI software for lease accounting
Not all tools offer true ROI. Trullion is the AI-powered accounting platform that was built specifically for ASC 842 and IFRS 16.
Automate lease abstraction, classification, and journal entry generation. Teams gain substantial ROI – saving time, reducing audit costs, and cutting out manual tasks and compliance risks.
Our enterprise-grade platform is scalable, secure, and bolstered by our responsive support team. Here’s a summary of why Trullion stands out:
- AI-powered automation, specifically designed for lease accounting
- Easy-to-use UI for rapid team adoption
- Powerful automations for abstraction, calculation, and reporting
- Real-time compliance tracking and alerts
- Enterprise-grade security and data encryption
- Scalable for growing lease portfolios
Conclusion: AI is the smartest investment you’ll make in lease compliance
AI is the opposite of an expense. It’s a strategic investment for increased efficiency, reduced costs, and confident ASC 842 and IFRS 16 compliance.
Ready to see the impact? Request a personalized Trullion demo today and experience the ROI of AI-powered compliance firsthand.