Why spreadsheets no longer measure up

As the revised FRS 102 standard introduces more meticulous lease accounting requirements, the limitations of spreadsheets are becoming increasingly apparent. In a recent broadcast, Gavin Maze from MRI Software and Richard Olney from Grant Thornton highlighted a shared concern: manual workbooks are no longer fit for purpose.

While spreadsheets may suffice for small portfolios, 10 or under, they quickly unravel under the weight of complex lease structures – rent reviews, break clauses, index-linked uplifts, and more. Version control becomes a full-time job, and formulas fracture under pressure. The updated standard intensifies this challenge: every rent-free period, lease modification, or early termination now demands remeasurement, not a year-end adjustment.

This revision increases workload and risk. Rebuilding schedules with every contract change invites errors, and auditors face a maze of cell references with no built-in audit trail.

The result?

Extended fieldwork, higher fees, and late journal corrections, issues that plagued IFRS 16 implementations and now serve as a warning for FRS 102.

Purpose-built software: A smarter path forward

Specialist lease accounting software addresses these challenges head-on. With MRI Software’s lease accounting platform, ProLease, every lease is stored in a central, searchable repository. Each journal entry links directly to the clause that generated it, creating a transparent audit trail which builds confidence and reduces the number of queries.

Tools like optical character recognition (OCR) and machine learning automate data capture – extracting key terms, flagging missing inputs, and eliminating duplicates before they reach the ledger. As discussed in the broadcast, this automation can reduce data entry effort by up to 80%, turning weeks of work into days.

If lease terms change, the system instantly recalculates right-of-use assets and liabilities, posting updates directly to your ERP. Dashboards provide real-time visibility across regions, asset types, and maturity bands and giving finance teams clarity on future cash flows, while property teams gain leverage in landlord negotiations. Read-only auditor access streamlines reviews and accelerates close cycles.

Transition without disruption

Migrating to software doesn’t mean disrupting your reporting calendar.

Start with a data health check: list all leases, close gaps, and standardise naming conventions. Load a sample into the platform, reconcile opening balances, and phase in the rest, prioritising high-value contracts to maintain momentum.

Former spreadsheet users shift from formula-building to reviewing exception reports, approving system suggested journals, and monitoring alerts. A short orientation session, backed by process guides, ensures teams realise the time savings quickly.

Budget planning should account for licensing, integration, and, if needed, temporary support for data gathering. As noted in the broadcast, under-resourcing was a key reason IFRS 16 projects ran late. Early involvement from procurement and operations helps surface hidden leases, and granting auditors access to the first live dataset builds trust in the new approach.

Act early & gain control

The message from the broadcast was clear: don’t wait. Moving lease data into purpose-built software ahead of the first FRS 102 reporting period is critical. By replacing fragile spreadsheets with a robust platform, finance teams gain automated calculations, traceable audit evidence, and real-time oversight of lease commitments.

It’s not just about compliance, it’s about control and clarity in every decision that follows.

Find out more about MRI Software’s purpose-built software here.