Lessee Accounting is a specialized accounting system used by businesses to manage the financial and legal obligations associated with leasing or renting an asset. It involves tracking payments for the leased or rented asset, calculating rent owed, and recording liabilities for property taxes, insurance and other fees. By properly managing lessee accounting, businesses can make informed decisions regarding their current and future leasing arrangements, minimize risk from non-payment, and ensure compliance with relevant laws and regulations. Lessee accounting is an essential part of any business’s financial management strategy.