Opinion
How asc 842 Has Changed the Game for Lehi Businesses
If you’ve spent any time around business owners or accountants in Lehi lately, there’s a good chance you’ve heard them muttering about leases, balance sheets, or “that new accounting standard.” That’s asc 842—the Financial Accounting Standards Board’s update to lease accounting rules—and it’s been making waves not just nationally, but right here in Utah’s Silicon Slopes hub.
Lehi has become a hotbed for high-growth startups, tech firms, and commercial developers. With all that activity comes plenty of office space, data centers, leased equipment, and property agreements. And under asc 842, all those leases now have to be accounted for on the balance sheet. No more tucking away operating leases in the footnotes.
What asc 842 Actually Changed
Before asc 842 came into play, many companies could treat operating leases as off-balance sheet items. This meant you could lease an office space, pay monthly rent, and not show that obligation on your balance sheet—as if it didn’t really affect your liabilities. But for investors and financial institutions trying to get a clear look at a business’s real commitments, it was like trying to read financials through fogged-up glasses.
asc 842 changed that. Now, nearly all leases over 12 months must be recorded as both a right-of-use asset and a lease liability, regardless of whether they’re considered capital or operating leases. The goal was to bring greater transparency and comparability to financial reporting—something particularly important in lease-heavy sectors like tech, retail, and manufacturing.
Adapting on the Ground in Lehi
Lehi isn’t just Utah’s tech hub—it’s a growing ecosystem of businesses that depend on leasing everything from office spaces in Thanksgiving Point to high-end tech equipment and distribution centers. For these companies, the transition to asc 842 wasn’t optional. And for many, it wasn’t exactly simple either.
Local accountants had to quickly get up to speed. CPAs in Lehi—many of whom serve startup clients navigating rapid growth—saw a surge in demand for lease classification audits, software implementations, and education around the new standard. Companies that had previously relied on basic accounting tools found themselves needing more robust systems that could handle lease calculations, amortization schedules, and liability tracking.
Some firms adopted specialized lease accounting software like LeaseQuery or NetLease. Others turned to fractional CFO services to help model lease impacts on financial statements and ensure compliance. Accountants weren’t just number-crunchers anymore—they became strategic advisors helping clients rethink everything from office expansion plans to capital structure.
The Upside: More Clarity and Control
Despite the initial headache, many Lehi business owners have found that asc 842 brought unexpected benefits. With leases now front and center on financial statements, companies have a clearer view of their long-term obligations. That visibility has led to better decision-making around real estate, hiring, and capital allocation.
For example, one tech startup in Lehi was considering leasing an additional floor in its building. Under the old rules, that lease might’ve looked like a simple monthly cost. But asc 842 forced them to recognize the full value of that lease commitment upfront—which led them to rethink the expansion and opt for a more flexible coworking setup instead.
This kind of strategic thinking—enabled by better accounting—helps businesses avoid overextending themselves. It also creates a more honest financial picture, which is critical when courting investors or preparing for an exit.
Resources and Education Are Key
As expected, the transition has been easier for businesses that invested in training and tools early on. Organizations like the Utah Association of Certified Public Accountants (UACPA) and local consulting firms hosted webinars and workshops on asc 842 in the lead-up to adoption deadlines. National resources have also played a big role in helping Lehi firms stay compliant and competitive.
One solid reference for understanding the technical aspects of asc 842 and how it impacts private and public companies is the Deloitte ASC 842 Lease Accounting Guide. It’s a helpful resource for finance professionals navigating these complex changes.
For startups and entrepreneurs not quite ready to hire a full-time accountant, many have turned to outsourced accounting services right in Lehi that specialize in growth-stage financial strategy. These teams not only help with lease classification and compliance, but also integrate it into broader financial planning.
Don’t Forget Marketing in the Mix
Interestingly, the shift in accounting practices has also prompted many businesses to look closer at marketing expenses, especially when marketing involves service contracts, licensing fees, or lease-like agreements for software tools. If your CRM, analytics platform, or ad management system is contracted over a multi-year term, there may be accounting implications under asc 842.
This has led some Lehi-based marketing agencies and internal marketing teams to collaborate more closely with finance. Budgets are being reevaluated not just for performance, but for how they show up on the books. Marketing isn’t just a growth lever anymore—it’s part of the broader financial conversation. And when marketers can speak the language of accounting, they tend to get more buy-in at the leadership table.
Looking Ahead: A More Financially Literate Business Culture
In many ways, asc 842 has sparked a kind of financial maturity in Lehi’s business scene. Startups are thinking more long-term. Growth plans are stress-tested against lease obligations. Founders are asking better questions—and learning to read their own balance sheets.
Sure, the initial wave of compliance work was a pain. But the end result has been a stronger foundation for decision-making. In a city where tech and innovation dominate, having a clearer financial picture helps companies scale smarter and more sustainably.
asc 842 may have started as an accounting update, but in Lehi, it’s become a driver of smarter business.
