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Home/Equipment Leasing Accounting
Equipment Leasing & Asset-Heavy Businesses

One asset, four revenue
models. One close.

Equipment dealers, lessors and industrial-asset businesses rarely sell one thing. The same unit gets sold outright, leased on a multi-year contract, serviced under a maintenance agreement, and resupplied with consumables — often to the same customer. Track those four revenue streams in four disconnected spreadsheets and your month-end close turns into a ten-day reconciliation exercise. We build the one system that replaces all four.

Talk to us → Read the case study
ASC 842 / IFRS 16 lease schedules
Right-of-use asset, lease liability and monthly interest/principal split built per contract — not estimated at year-end.
Every serialised unit tracked to status
Sold, on lease, out for demo, or in for service — one record per asset, correct revenue treatment applied automatically.
Per-revenue-model P&L
Sales, leasing, service and consumables reported separately in Zoho Analytics — so you know which line actually makes money.
10-day close down to 3 days
Real result for a robotics and equipment-leasing client after connecting four disconnected systems into one — see the case study.
The core problems

What goes wrong when four revenue models
share one chart of accounts.

📋
Sales, leases, service and consumables blended into one
A standard chart of accounts has one revenue line. Equipment sales, operating leases, service contracts and consumables each need their own — otherwise a highly profitable service line quietly subsidises a low-margin equipment sale and nobody notices.
📅
Lease schedules tracked in a separate spreadsheet
Multi-year lease terms running two to five years need month-by-month invoicing and an ASC 842 / IFRS 16 amortisation schedule. Kept outside the accounting system, it drifts out of sync with the books within a quarter or two.
🔧
Service renewals living in someone's inbox
When maintenance contract renewals depend on an engineer remembering to check a calendar, renewals get missed, revenue gets delayed, and there is no system record of which contracts are active until someone asks.
🏷️
No single record of what happened to each unit
A unit that started as a demo, got leased, and was later sold to the same customer needs its revenue treatment to change at each step. Without one record per serial number, that history is invisible and the wrong treatment gets applied.
🧮
Depreciation and fixed-asset schedules out of date
Leased-out equipment stays on your books as a fixed asset and needs to be depreciated correctly, separately from equipment held for sale as inventory. Mixing the two overstates or understates both the balance sheet and cost of goods sold.
⏱️
Month-end close stretches into a second week
When closing means manually pulling data from four disconnected sources and reconciling it against the bank by hand, month-end reports become month-and-a-half-end reports — arriving too late to inform any real decision.
What we deliver

One connected system for every revenue
model your equipment generates.

LEASE ACCOUNTING
ASC 842 / IFRS 16 lease schedules, per contract
Right-of-use asset and lease liability set up on day one of every lease. Monthly recognition split between interest and principal calculated automatically, reconciled to the balance sheet every close.
ASSET TRACKING
Serial-number-level status tracking
Every unit tracked in Zoho Books and Zoho CRM against one record showing sold, on lease, out for demo, or in service — with customer, contract terms and revenue treatment attached.
FIXED ASSETS
Depreciation schedules separated from inventory
Equipment held for lease depreciated correctly as a fixed asset. Equipment held for sale tracked as inventory. The two never get mixed on the balance sheet.
SERVICE CONTRACTS
Renewal alerts built into the system
Service and maintenance contracts flagged for renewal automatically ahead of expiry, instead of depending on an engineer's memory or inbox.
PER-MODEL REPORTING
Sales, leasing, service and consumables split apart
A Zoho Analytics P&L built by revenue model, drawn from the same underlying data — so you see exactly which line is profitable and which is being subsidised.
MONTH-END CLOSE
One connected system, one reconciled close
Sales, lease invoicing, service renewals and consumables all feed the same books throughout the month — so closing is reconciliation, not reconstruction.
Real result

A robotics and equipment-leasing company,
four systems down to one.

Equipment sales in a spreadsheet, lease schedules in another, service renewals in two engineers' inboxes, consumables invoiced ad hoc. Nobody could say what the business had earned until the tenth working day of the next month.

4 → 1
Disconnected tracking systems replaced with one Zoho Books + CRM system
10 → 3
Days to close the books, before and after
100%
Units tracked to a single status record — sold, leased, demo or in service
Read the full case study →

Frequently Asked Questions

What makes accounting for equipment leasing companies different?+
Most equipment and asset-heavy businesses run several revenue models at once — outright equipment sales, operating or finance leases, service and maintenance contracts, and parts or consumables — often for the same customer and the same physical asset. Each revenue model recognises revenue differently and needs its own schedule. A general chart of accounts blends all four into one line, so nobody can tell which part of the business is actually profitable.
Do you handle ASC 842 / IFRS 16 lease accounting?+
Yes. Every operating and finance lease is set up with its own amortisation schedule — right-of-use asset, lease liability, and the monthly recognition split between interest and principal — built to satisfy both ASC 842 and IFRS 16. Multi-year lease terms are tracked individually so nothing is missed at renewal, escalation or early termination.
How do you track leased vs. sold vs. demo equipment?+
Every serialised unit is tracked in Zoho Books and Zoho CRM against a single record showing its current status — sold, on lease, out for demo, or in service — and its customer. That status feeds the correct revenue treatment automatically: a sale is recognised on delivery, a lease is recognised over the term, and a demo unit generates no revenue at all until it converts.
Can you close the books faster than 10 days?+
For one robotics and equipment-leasing client, yes — from a 10-day close down to 3 days, by connecting equipment sales, lease invoicing, service contract renewals and consumables into one Zoho Books and CRM system instead of four disconnected spreadsheets and inboxes. The close gets faster because the data is already reconciled by the time the month ends, not because anyone works faster at month-end.
What is a per-revenue-model P&L and why does it matter?+
It is a profit and loss statement broken out by revenue line — equipment sales, leasing, service contracts, consumables — instead of one blended number. Asset-heavy businesses often subsidise a low-margin line (equipment sales) with a high-margin one (service contracts) without realising it. A per-model P&L, built in Zoho Analytics from the same underlying data, shows exactly which part of the business is funding the others.
Related services

The full finance stack
for equipment and asset-heavy businesses.

📖
Zoho Books Setup
Chart of accounts built for equipment sales, leasing, service and consumables — plus lease schedules and fixed-asset tracking.
Explore → 🎯
Zoho CRM
One record per serialised unit — status, customer and contract terms connected to the books that recognise the revenue.
Explore → 💵
Financial Planning & Analysis
Per-revenue-model P&L, cash flow forecast and margin analysis built from your live Zoho Books or QuickBooks data.
Explore →
Get in touch

Tell us your
situation.

One conversation is usually enough to understand your setup and tell you honestly what we can fix, how long it takes, and what it costs. No obligation.

Phone & WhatsApp +91 94045 42550
Email piyush@khetanca.com
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