Financial lease accounting describes the process of tracking and recording an organization’s leased assets from the time of acquisition to the end of their useful life. It encompasses a variety of activities, including evaluating leases for compliance with regulations, calculating payments due, setting up payment schedules, and recording adjustments to accounts. The goal of financial lease accounting is to accurately track leased assets over time to ensure accuracy, efficiency, and compliance with legal requirements. By following the right procedures, organizations can maximize the benefits of leasing and keep their finances in good order.