Growth is often the name of the game. Startups race to open new offices, retailers scale by launching new storefronts, and logistics companies expand their fleet to meet demand. But with aggressive expansion comes a lesser-known challenge: how to account for leases accurately and consistently.

Under modern lease accounting standards like ASC 842 and IFRS 16, businesses must recognize most lease agreements as Right-of-Use (ROU) Assets on the balance sheet—along with corresponding lease liabilities. For high-growth companies, where new leases are signed frequently across geographies or business units, this accounting treatment is far from trivial.

Failure to properly manage ROU assets can lead to distorted financial statements, audit complications, and even misinformed strategic decisions.…