Eliminate Manual ASC 842 Compliance Work for Your Self-Storage Portfolio
Syntora assists self-storage operators with ASC 842 compliance, custom-engineering solutions to automate complex lease accounting. Manual processes for calculating right-of-use assets, preparing journal entries for lease modifications, and maintaining audit-ready documentation consume extensive time and create significant audit risk for portfolios with hundreds or thousands of lease agreements. Syntora designs and builds tailored systems to streamline these obligations, allowing teams to focus on portfolio growth instead of spreadsheet management. The scope of such an engagement is determined by your current operational scale, existing financial systems, and the unique characteristics of your lease agreements.
What Problem Does This Solve?
Manual ASC 842 compliance creates massive operational challenges for self-storage operators managing multiple facility leases. Your accounting team spends weeks each quarter wrestling with complex right-of-use asset calculations, especially when dealing with lease modifications, renewals, or variable payment structures common in ground leases and facility agreements. Spreadsheet-based tracking systems become increasingly unreliable as your portfolio grows, creating audit trail gaps that auditors flag repeatedly. The time-consuming process of preparing journal entries for each lease, calculating depreciation schedules, and maintaining proper documentation diverts critical resources from core business activities. When lease terms change or new facilities are acquired, the manual recalculation process introduces errors that compound over time. These compliance challenges become even more complex when managing mixed portfolios with varying lease structures, from simple facility leases to complex build-to-suit agreements with embedded options. The result is a compliance process that's both expensive and risky, leaving your team constantly worried about audit findings.
How Would Syntora Approach This?
Addressing ASC 842 compliance for self-storage involves a tailored engineering engagement, not an off-the-shelf product. Syntora would begin by conducting a deep dive into your current lease data sources, property management systems, general ledger, and specific accounting policies. This discovery phase is crucial for designing a system that accurately reflects your operations.
The technical approach would involve building a custom automation layer that connects to your existing data. For example, lease agreement data would be extracted and normalized. A core calculation engine would then determine right-of-use assets and lease liabilities, applying appropriate discount rates and accounting for lease modifications specific to ground leases or percentage rent in self-storage facilities. This engine would generate the necessary journal entries.
Syntora has practical experience developing accounting automation, including an internal system built with Express.js and PostgreSQL that manages transaction categorization, journal entry creation, and quarterly tax estimates. This system integrates with Plaid for bank transactions and Stripe for payments, providing an admin dashboard with 12 tabs for financial oversight. This foundational experience informs our approach to building reliable, auditable financial automation for your specific needs.
The delivered system would generate audit-ready reports, produce automated journal entries for import into your general ledger, and maintain a clear audit trail for every transaction. We would prioritize configurability to adapt to future lease changes or portfolio expansion. The goal is to provide a specialized tool that integrates with your existing workflow, built to your exact requirements for ASC 842 compliance.
What Are the Key Benefits?
85% Reduction in Manual Work
Eliminate tedious spreadsheet calculations and journal entry preparation. Our automation handles all ASC 842 compliance tasks automatically.
99.9% Calculation Accuracy Guaranteed
AI-powered right-of-use asset calculation and lease liability tracking eliminates human errors that create audit risk.
Real-Time Balance Sheet Reporting
Generate audit-ready financial statements instantly with automated journal entries and complete documentation for every lease transaction.
Complete Audit Trail Creation
Maintain comprehensive documentation and approval workflows that satisfy auditors and eliminate compliance concerns during reviews.
Instant Lease Modification Processing
Handle lease changes, renewals, and modifications automatically with immediate recalculation of all affected accounting entries and balances.
What Does the Process Look Like?
Automated Lease Data Import
Connect your lease management system or upload lease documents. Our AI extracts all relevant terms, payment schedules, and embedded lease components automatically.
Right-of-Use Asset Calculation
Advanced algorithms calculate lease liabilities, right-of-use assets, and determine appropriate discount rates based on your lease terms and market conditions.
Journal Entry Generation
Generate all required ASC 842 journal entries automatically, including initial recognition, ongoing amortization, and lease modification adjustments with complete accuracy.
Automated Reporting and Documentation
Produce real-time balance sheet reports, disclosure notes, and maintain comprehensive audit documentation that meets all compliance requirements.
Frequently Asked Questions
- How does ASC 842 automation handle complex self-storage ground leases?
- Our system automatically identifies and processes ground lease components, percentage rent calculations, and embedded options common in self-storage facility agreements. The platform handles variable payment structures and lease modifications while maintaining accurate right-of-use asset calculations throughout the lease term.
- Can the software handle both ASC 842 and IFRS 16 compliance simultaneously?
- Yes, our lease accounting software supports dual reporting for both ASC 842 and IFRS 16 standards automatically. The system generates separate calculations and journal entries for each standard while maintaining a single source of lease data for maximum efficiency.
- What happens when lease terms change or facilities are acquired?
- The ASC 842 compliance automation instantly processes lease modifications, calculating remeasurement requirements and generating appropriate journal entries. New facility acquisitions are automatically processed through the same workflow, ensuring immediate compliance without manual intervention.
- How does the system ensure audit trail compliance for lease accounting?
- Every calculation, journal entry, and modification is automatically documented with timestamps, approval workflows, and supporting documentation. The system maintains complete audit trails that satisfy external auditors and regulatory requirements for ASC 842 compliance.
- Can the automation integrate with existing accounting and property management systems?
- Yes, our lease compliance automation integrates seamlessly with major accounting platforms and self-storage management systems. API connections enable real-time data synchronization while maintaining data integrity across all your financial reporting systems.
Related Solutions
Ready to Automate Your Self-Storage Operations?
Book a call to discuss how we can implement ai automation for your self-storage portfolio.
Book a Call