Crunchafi & Thomson Reuters Target ASC 842 Pain with Deeper Partnership

MILWAUKEE, WI – February 10, 2026 – In a move set to further reshape the accounting technology landscape, SaaS provider Crunchafi and global information giant Thomson Reuters have announced a significant expansion of their strategic partnership. The collaboration is squarely aimed at one of the profession's most persistent challenges: the complexities of lease accounting standard ASC 842. Building on an existing integration, the two companies are now launching new educational initiatives and joint resources designed to empower accounting and audit firms.

This deepened alliance signals a critical trend in the financial technology sector, where integrated software ecosystems and targeted educational support are becoming essential for navigating an increasingly complex regulatory environment. For firms still grappling with manual processes and compliance risks, this partnership promises a more streamlined path from technical guidance to consistent execution.

The Persistent Challenge of ASC 842

The Financial Accounting Standards Board (FASB) implemented ASC 842 to increase transparency by bringing nearly all leases onto the balance sheet. While the goal was laudable, the execution has proven to be a significant and ongoing burden for companies of all sizes. The initial wave of implementation was more costly and resource-intensive than many anticipated, and the complexities have not faded over time.

Professionals continue to struggle with several key areas. A primary hurdle is achieving a complete and accurate lease inventory. Many firms find it difficult to identify all lease agreements, particularly “embedded leases” hidden within larger service contracts. This oversight can lead to a material understatement of lease liabilities and right-of-use (ROU) assets.

Furthermore, the standard requires complex calculations and judgments. Selecting the correct discount rate, often the company’s incremental borrowing rate (IBR), is a critical step that is frequently a source of error. The ongoing management of lease modifications, remeasurements, and terminations adds another layer of complexity, demanding precise calculations and a clear audit trail that is difficult to maintain using traditional spreadsheets. This reliance on manual data management across decentralized spreadsheets remains a major source of errors, inefficiencies, and compliance risk, especially for organizations with large lease portfolios. As a result, lease accounting has become a major focus for auditors, who are applying increased scrutiny to the assumptions, documentation, and controls surrounding ASC 842 compliance.

A Strategic Alliance in a Competitive Market

To address these challenges, a robust market for lease accounting software has emerged, with a projected value expected to surpass USD 1 billion by the early 2030s. Crunchafi, formerly LeaseCrunch, has carved out a strong position in this space, earning the trust of over 750 CPA firms with its cloud-based solutions. However, it operates in a competitive field against established players like FinQuery, Visual Lease, and CoStar Real Estate Manager.

This is where the strategic value of the Thomson Reuters partnership becomes clear. By deepening its ties with the global technology company, Crunchafi gains access to a massive and established user base. The collaboration centers on integrating Crunchafi’s capabilities directly into Thomson Reuters' Cloud Audit Suite, a comprehensive, end-to-end platform for audit engagements. Specifically, the integration is with Guided Assurance, a key component that embeds Thomson Reuters’ renowned PPC (Practioners Publishing Company) methodology.

The PPC methodology is a gold standard for audit quality and compliance, used by an estimated 16,000 accounting firms in the United States. By embedding Crunchafi’s automation directly into PPC-based workflows, the partnership allows firms to adopt powerful new technology without disrupting their established, trusted processes. This move is a strategic play by both companies: Crunchafi expands its market reach, while Thomson Reuters enriches its Cloud Audit Suite, making its platform a more compelling all-in-one solution for modern audit firms.

Empowering Professionals with Tools and Education

While the initial partnership focused on integrating the technology, this latest phase is about ensuring professionals can leverage it effectively. The new initiatives are designed to bridge the gap between having the tools and using them with confidence.

The companies are co-hosting a webinar, “Lease Changes Under ASC 842: From Technical Guidance to Consistent Execution,” to provide practical guidance on handling lease modifications and ongoing compliance. In another move to ensure deep product knowledge, Crunchafi experts will directly train Thomson Reuters sales professionals, equipping them to better support users of the integrated solution.

Perhaps most importantly, the two companies are co-developing implementation guides, workflow examples, and best practices. These resources will show auditors exactly how to use Crunchafi’s automation alongside the PPC methodology within Guided Assurance. The stated goal is to eliminate manual calculations, reduce errors, and accelerate audit work by providing a clear, reliable, and consistent approach to a complex area.

“These new initiatives are about making sure firms don’t just have powerful tools—they also have the education, guidance and support to use them with confidence,” says Mike Cooke, CRO at Crunchafi. This focus on user enablement is critical for driving adoption and ensuring that the technology delivers on its promise of efficiency and accuracy.

The Future of Audit: AI, Integration, and Ecosystems

This partnership is a microcosm of a larger transformation occurring within the accounting and audit profession. The industry is rapidly moving away from siloed software solutions and toward integrated, cloud-based ecosystems. Technology providers are no longer just selling software; they are building platforms and forging alliances to offer comprehensive solutions that address the entire professional workflow.

At the heart of this shift are automation and artificial intelligence. Experts predict that AI will automate a significant portion of traditional accounting tasks, freeing up professionals to focus on higher-value strategic analysis and client advisory services. Thomson Reuters has explicitly stated its vision is to make the PPC methodology the most AI-automated audit approach on the market, and partnerships with innovators like Crunchafi are a key part of that strategy.

By combining Crunchafi’s specialized lease accounting automation with the trusted framework of the PPC methodology and the collaborative power of the Cloud Audit Suite, the partnership provides a blueprint for the future of audit. It demonstrates how specialized AI-driven tools can be seamlessly integrated into established workflows, enhancing efficiency and quality without forcing firms to abandon the standards and practices they trust. For accounting firms looking to maintain a competitive edge, embracing these integrated ecosystems is no longer a choice, but a necessity for survival and growth.