Two in three large UK companies still rely on Excel for account analysis and reconciliation, according to a 2026 survey of 303 UK finance chiefs published by Sixthfin. Fixed asset software provider FMIS says that reliance on spreadsheets could create additional risk under the revised FRS 102 lease rules, which require more lease calculations, disclosures and far more audit evidence in the first reporting cycle.
The revised standard applies to accounting periods beginning on or after 1 January 2026. It requires most leases to be recognised on-balance-sheet as a right-of-use asset with a corresponding lease liability, bringing FRS 102 more closely in line with IFRS 16. For companies with a December year end, the year ending 31 December 2026 will be the first annual reporting period affected.
The change removes the previous distinction between operating and finance leases for lessees. Operating leases that were previously held off-balance-sheet are now recognised on it, affecting reported assets, liabilities and key metrics such as EBITDA. The first year of adoption carries the heaviest disclosure requirements and the closest audit scrutiny.
FMIS says this is where the limitations of spreadsheets become more apparent. Manual lease calculations, opening balances and disclosure requirements are the areas where spreadsheet-based approaches can become difficult to manage, creating audit exposure in the year it matters most. The same Sixthfin research found that more than one in three UK CFOs are not highly confident in the reliability of their own figures, adding to the concern as reporting scrutiny rises.
Organisations in more than 40 countries, including NHS trusts, universities, local authorities and manufacturers, use FMIS Lease Accounting Software. FMIS offers a lease accounting module designed to support lease administration by tracking centralising lease data, tracking lease information, automating calculations, and supporting reporting requirements under FRS 102 and IFRS 16 reporting.
“Spreadsheets are where good intentions come undone in year one. The new FRS 102 lease rules bring more calculations, more disclosures and far more audit evidence, and a manual model tends to buckle under all three at once. The teams that move to a proper system now can close faster and carry less audit risk.” John de Robeck, New Business and Partnerships Lead, FMIS