Automating Lease Accounting and Revenue Recognition: Overcoming Challenges in Subscription Based Models

As businesses increasingly move to subscription-based models, traditional accounting practices for leases and revenue recognition are being stretched beyond their limits.Managing dynamic contracts, modifications, and usage-based pricing has become increasingly complex under standards like ASC 606 and ASC 842.This review explores how organizations are adopting automation, AI, and event-driven logic to streamline these processes.By analyzing system architectures, leading technologies, real-world performance metrics, and future innovations, this article provides a practical guide for finance professionals, auditors, and ERP architects.It concludes that automation is not just an operational efficiency but a strategic enabler of agility, transparency, and compliance in today's finance landscape.