Whether you are ready or not, the ASC 842 standard for GAAP lease accounting is here—and the time is now to prepare your clients for its implications.

The new ASC 842 standard for GAAP lease accounting requires all leases longer than 12 months to be recorded as assets and liabilities on balance sheets, and this must be implemented for nonpublic companies for fiscal years beginning after Dec. 15, 2021.

Implementing the new standard requires companies to categorize all leases as both liabilities and right-of-use assets and will have significant impacts on the balance sheets of many organizations.

Getting your clients ready now, before the busy season arrives, is critical to ensuring that you have the time and resources to assist clients without having to outsource the work or raise your fees.