Long term lease accounting is an important tool for businesses to properly account for long-term leasing or rental arrangements. It helps provide financial clarity and insight into the future for businesses who are preparing to enter into a lengthy agreement with their customers. By recognizing future cash flows, it allows organizations to make sensible decisions over operational costs, as well as plan more accurately for the financial obligations of entering into this type of contract. Ultimately, it simplifies the process of bookkeeping, giving business owners greater control over their finances.