In the last few decades, leasing has become increasingly important in the financing process, and in addition to existing financing instruments, in addition to traditional lending, it is playing an increasing role. This paper is based on the description of the accounting treatment of leasing and its recording in the business books of the issuer and the lessee. Since the differences in recording between these two parties are unquestionable, the paper seeks to show the characteristic ways of recording leasing when it comes to financial and operating leasing. In addition to the accounting aspect, the paper also touches on the legislative framework related to leasing, certain types of leasing are considered, as well as regulations related to the leasing contract. The purpose of this paper is to present the interaction of accounting, tax and financial aspects and point out all the advantages and disadvantages of leasing as a non-traditional method of financing. The aim of this paper is to explain and provide answers to questions about when and in which situations a certain type of leasing pays off, what is actually leasing, how leasing is accounted for by recipients and issuers and what are the advantages and disadvantages of leasing financing.