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Money Forward Cloud's Roadmap to New Lease Accounting Standards

In a significant move aimed at helping businesses navigate the complex landscape of accounting, Money Forward Co., Ltd. has unveiled a detailed roadmap for transitioning to the new lease accounting standards set to take effect for fiscal years commencing on or after April 1, 2027. This initiative is part of a broader effort to streamline accounting processes and ensure compliance with updated regulations.

New Products and Features to Support Transition

To facilitate a smooth transition for existing users, Money Forward plans to launch a new product, Money Forward Cloud Lease Accounting, by 2025. This innovative solution will be integrated with existing services like Money Forward Cloud Accounting Plus, Money Forward Cloud Contracts, and Money Forward Cloud Consolidated Accounting. The integration will enhance functionalities and allow users to adopt the new lease accounting standards with ease and efficiency.

Key Features of Money Forward Cloud Lease Accounting

The forthcoming product is particularly noteworthy for its comprehensive features, including:

• - Efficient Lease Transaction Identification: Users will benefit from tools designed to effectively identify and assess lease transactions.
• - Automatic Determination of Lease Transactions: This feature will automate the process of determining whether a transaction qualifies as a lease.
• - Automated Calculations: The product will calculate the effects on assets, liabilities, depreciation expenses, and interest payments automatically, creating seamless accounting entries.

The flexibility of Money Forward Cloud Lease Accounting allows organizations to leverage it alongside existing accounting and fixed asset management systems, promoting smoother integration without the need for an overhaul. This is particularly beneficial for businesses already utilizing other accounting systems, as they can adopt the new lease accounting standards without disrupting their current workflows.

Integrations with Existing Products

Money Forward is also enhancing its current offerings to align with the new standards:

• - Cloud Contracts will feature a lease determination function that allows the lease contract information to be linked directly to the new lease accounting product.
• - Cloud Accounting Plus will enable data exchange related to lease liabilities and usage rights, facilitating more accurate financial reporting.
• - Cloud Consolidated Accounting will ensure seamless integration of disclosure-related notes necessary for compliance with the new standards.

Understanding the New Lease Accounting Standards

The upcoming lease accounting standards are aimed at improving how companies manage and report lease obligations. Effective from April 1, 2027, these standards will require public and large enterprises to account for operating leases on their balance sheets, in addition to finance leases that were already included.

This change necessitates that businesses identify and classify leases accurately, maintain comprehensive lease records, and perform regular updates on depreciation expenses and lease liabilities. The new standards are expected to increase transparency and comparability of financial information, bolstering investors’ trust and enhancing the corporate value of complying companies.

The Urgency of Preparation

As businesses gear up for the mandatory adoption of these new standards, thorough preparations will be critical. With only two years remaining until these standards take effect, it is imperative for companies to establish workflows, consult relevant departments, and develop the necessary systems for compliance. Money Forward aims to support not only its existing user base but also businesses utilizing other software systems, ensuring a seamless transition for all parties involved.

More About Money Forward Cloud

Money Forward Cloud is a sophisticated SaaS platform designed to facilitate the integration of back-office operations, improving efficiency across accounting, human resources, and legal tasks. By streamlining these essential functions, Money Forward aims to empower businesses to focus on growth and innovation.

To learn more, visit Money Forward Cloud.

About Money Forward Inc.

Founded in May 2012, Money Forward is dedicated to providing exceptional platform services that enhance business efficiencies. Located at 21F, Tamachi Station Tower S, 3-1-21 Shibaura, Minato, Tokyo, the company continues to be a leader in accounting technologies and support solutions.

For more information about Money Forward, visit Money Forward Corporate.