The revenue model for high-tech companies has completely transformed.
What started as simple software subscriptions has become full-scale Everything-as-a-Service (XaaS), where hardware, software, services, and usage are bundled into a single customer experience. The shift has been great for growth, but brutal for Finance leaders. Suddenly, hardware CFOs must run ASC 842 lease accounting and ASC 606 revenue recognition (or IFRS 16 and IFRS 15) at the same time, on the same contract, something no existing system was built to handle.
RightRev is proud to announce the launch of the industry’s first unified lease accounting solution, built for lessors, that brings both ASC 842/IFRS 16 compliance and ASC 606/IFRS 15 revenue recognition into one, automated platform. This breakthrough eliminates the manual reconciliation nightmare that has plagued finance teams and unlocks new possibilities for XaaS innovation.
The XaaS Lease Accounting Challenge
The explosion of XaaS business models has created a perfect storm of accounting complexity. Companies are no longer just selling software, they’re bundling solutions that combine hardware leasing with software subscriptions, professional services, and usage-based components. Each element requires different accounting treatment, yet they’re economically and contractually intertwined.
Traditional lease accounting software was built for lessees tracking liabilities, not lessors earning income. These tools focus on ASC 842 lessee compliance in isolation, leaving finance teams to manually reconcile lease calculations across separate systems. This introduced a spiderweb of spreadsheet-heavy processes, audit risks, and barriers to launching innovative bundled offerings./
Introducing RightRev Lessor Accounting
RightRev’s unified lease accounting and revenue recognition platform transforms this complexity into compliance confidence for all XaaS lessors. Unlike traditional tools built for lessees, our solution is purpose-designed for lessors who earn lease income while simultaneously recognizing revenue from bundled components.
Our event-driven and rules-based architecture ensures that every contract modification automatically triggers synchronized updates across both ASC 842 / IFRS 16 lease calculations and ASC 606 / IFRS 15 revenue recognition. This eliminates manual reconciliation while providing real-time visibility into lease income, revenue schedules, and billing forecasts.
Beyond Traditional Lease Accounting Tools
What sets RightRev apart is our unified approach to lessor accounting. Rather than forcing finance teams to stitch together separate lease and revenue systems, we provide:
- Single Contract Representation: Each contract exists once in the system for both lease accounting and revenue recognition
- Automated Component Identification: Intelligent parsing of hardware (lease) versus software/services (non-lease) elements
- Unified Allocation Engine: SSP-based allocation across all components following ASC 606 / IFRS 15 guidance
- Synchronized Schedule Generation: Parallel lease income and revenue recognition schedules from a single source
Why This Matters: Three Critical Business Impacts
RightRev’s lease accounting solution addresses fundamental challenges constraining XaaS growth and financial efficiency.
- For CFOs: Reduce Audit Risk & Accelerate Close
Manual reconciliation between lease and revenue systems creates material weakness risk and extends close cycles. Our unified platform provides a single view of revenue with automated, audit-ready journal entries. - For CROs: Enable Faster XaaS Innovation
Traditional accounting constraints limit go-to-market agility. RightRev lets revenue leaders launch complex hardware-software bundles confidently, with automated accounting. - For Controllers: Eliminate Manual Reconciliation
RightRev ingests contract data once and automatically generates compliant schedules across both standards, ending parallel spreadsheets and manual reconciliation.
How RightRev Lessor Accounting Works: End-to-End Automation
Our platform transforms complex lessor accounting into streamlined, automated processes that scale with your business growth.
Automated Lessor Accounting Product
Built specifically for lessors earning income rather than lessees tracking liabilities, finance teams can now:
- Model hardware + software + services in one contract
- Allocate consideration across 842 + 606 using a single SSP engine
- Automate Day-2 modifications (extensions, CPI resets, upgrades)
- Generate lease income, revenue schedules, and journal entries from one place
- Reduce audit risk, close time, and spreadsheet dependency
- Enable the launch of XaaS pricing models
The system processes operational leases, sales-type leases, and direct financing leases with full compliance across ASC 842/IFRS 16 requirements.
Unified Billing & Revenue Forecasting
Since RightRev now runs ASC 842 + ASC 606 and IFRS 16 + IFRS 15 in one engine, billing and revenue forecasts finally come from the same source, updated automatically, accurate instantly, and aligned with accounting reality.
By modeling the contract once, applying a single SSP allocation, and updating both lease and revenue schedules with every modification, RightRev synchronizes fixed payments, variable usage, index-linked escalators, and subscription fees into one unified forecast. No more reconciling billing to accounting or chasing spreadsheets—just a single, trusted view of future revenue.
Real-Time Amortization & Journal Entries
Every contract modification triggers automatic updates across both lease and revenue schedules:
- Compliant amortization schedules that update instantly
- Automated journal entries for measurements, interest, and variables
- Audit-ready documentation with clear references to originating contracts
- GL integration with proper functional currency handling
Executive Perspective: The Future of Unified Revenue Operations
“Finance teams at hardware companies have been forced to choose between accounting accuracy and operational agility for too long. Our platform eliminates that trade-off by providing the industry’s first truly integrated lessor accounting solution for XaaS. This empowers our customers to innovate faster while maintaining the highest standards of compliance and control.” Jagan Reddy, CFO RightRev
This vision aligns with RightRev’s broader mission of transforming revenue operations through automation, enabling finance teams to focus on strategic analysis rather than manual reconciliation.
Get Started: Experience Unified Lease & Revenue Accounting
RightRev’s Lessor Accounting product is available now for XaaS companies ready to transform their lessor accounting operations. Whether you’re struggling with manual reconciliation, seeking to launch new XaaS offerings, or preparing for audit season, our unified revenue platform provides the automation and compliance confidence you need.
Don’t let accounting complexity constrain your innovation potential. Request a demo to see how RightRev can eliminate manual reconciliation while enabling faster XaaS growth.
The future of revenue operations is unified, automated, and strategic. Request a demo today to experience the difference that purpose-built lessor accounting can make for your organization.
