Accounting Leases are an agreement between a lessor, or landlord, and a lessee, or tenant. Under this arrangement, the lessor owns property that is leased to the lessee for use in their business operations at a pre-determined rent amount. A key feature of accounting leases is that, from a financial perspective, they can be treated as either assets owned by the lessee or financing arrangements. This feature provides both parties with potential tax benefits, depending on their individual circumstances. Ultimately, accounting leases provide businesses with an efficient and cost-effective method of acquiring the equipment they need while keeping their finances in order.