Specialist Software for In-House Solutions
Simplifying Lease Accounting Compliance
Looking for that effective solution for managing the change to lease accounting FRS 102 Section 20?
Our approach focuses on leveraging specialised software in collaboration with our trusted providers to simplify compliance complexities, align with your business needs, and ensure a smooth transition.
Streamline compliance, reduce manual effort, and eliminate misinterpretations with AI-powered leasing software that accurately extracts key lease details from agreements.
For smaller lease portfolios, the Lease Accounting Model in Knowledge Hub offers a practical solution, supported by project management tools to help you navigate compliance with confidence.
SOFTWARE SOLUTIONS
Our Trusted Software Providers
Get in touch to connect with our trusted partners and access cost-efficient software solutions to boost revenue from existing and new clients.
Rubli
Specialising exclusively in lease accounting compliance & seamless ERP integration
FinQuery
Top-ranked lease accounting excellence & unrivaled customer satisfaction
Trullion
AI-Powered lease accounting
for real-time precision & compliance
We only recommend products and services we believe provide valuable solutions to our clients. By partnering with trusted providers, we help you find the right tools to streamline lease accounting.
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2026 FRS 102 Section 20 Deadline:
The Complexity of Lease Accounting Compliance Can’t Be Overlooked
For UK businesses, complying with the new requirements is a significant task that requires careful planning.
Given the complexity involved, specialist software offers the most effective way to manage this transition.
Knowledge Hub Access
Visit our Knowledge Hub for resources on lease accounting, essential project tools, FAQs, and more. Use our step-by-step Project Implementation Plan for a smooth transition.
Software Solutions
We recommend AI-powered lease software that automatically extracts key details from agreements, ensuring compliance, reducing manual tasks, and minimising the risk of errors.
Early Access Benefits
Secure early access to software providers before the rush and take advantage of discounted rates, avoiding premium charges when demand peaks.
Essential Insights: Strategies for a Smooth Transition
Awareness and leadership
Is your organisation aware of the forthcoming changes to lease accounting, and the timelines specific to your organisation?
Is appointing a project leader sufficient, or does your scale or complexity of this initiative call for a dedicated project committee.
Does your lead possess project management skills?
For a software solution, its essential to have IT fully involved.
Organisational Strategy and Goals
Does the in-house solution align with your company’s strategy, as opposed to outsourcing non-core functions.
Attitude to risk, Data security and Privacy
What is your company's approach to risk management, and how does it influence your strategic decisions and operations.
Consider your safety and privacy requirements of your sensitive information. For example, recording personal details of the user of a leased car may have privacy implications.
Plan, Implement and Delegate
Senior finance professionals should focus on planning and implementing the project.
Once implementation is complete, they should delegate the routine tasks to junior staff, concentrating on oversight and control, while dedicating more time to critical business issues.
Plan for the medium to long-term
Plan carefully for the medium to long-term, as making changes after implementation can be difficult. Make sure to choose the right solution that will serve your needs well into the future.
Spreadsheet and Specialist Software Solutions
Finance professionals possess the expertise to develop a highly effective spreadsheet solution.
The challenge lies in the continuous changes to the lease portfolio, re-measurements for rent reviews, extensions, indexation, break clauses, terminations, impairments) as spreadsheets lack the built-in controls needed to manage these changes effectively.
This limitation also makes it difficult to delegate the lease accounting function to junior staff.
Spreadsheets are not a viable medium to long-term solution unless you are willing to invest significant time, compared to opting for a readily available off-the-shelf solution.
Who still uses or relies upon an in-house built payroll system, CRM, or accounting software? Lease accounting should be no different.
Key benefits of lease accounting software include automated and controlled uploading of key lease metrics, streamlined implementation, simplified lease accounting processes, multi-user functionality, speed and efficiency, accurate and compliant lease reporting, smart interfacing, and seamless integration with existing systems without disruption, forecasting and budgeting.
Make the case for a Software Solution and its Key benefits
The complexities of compliance, financial reporting, automation, efficiency, and ongoing lease accounting management lead to the conclusion that software is the only viable solution for the medium to long term.
It is essential to highlight the hidden costs and challenges, as well as the associated risks, and emphasise the importance of mitigating these potential costs to justify the need for software.
The availability of off-the-shelf solutions like payroll systems, CRM, or accounting software should be considered similarly when evaluating your lease accounting solution.
We must acknowledge that this change in accounting standards will lead to increased costs, both direct and indirect, without necessarily providing any direct added value to companies.
The change is primarily aimed at helping readers of financial statements and investors gain a better understanding of your financial position.
Key benefits of lease accounting software:
Efficiency and Accuracy: Automation of the lease calculations, ensuring accuracy and saving valuable time, thereby eliminating manual calculations and data entry errors.
Foreign Exchange: Streamlined foreign exchange management with report generation in the company’s presentational currency, providing both detailed and summarised foreign exchange analysis.
Compliance Made Easy: Up-to-date with the latest lease accounting regulations, so you can rest assured that our solutions will keep you compliant without any added burden.
Enhanced Reporting: Generate comprehensive reports, visualise lease data, and gain insights into your lease portfolio effortlessly. Our reporting capabilities empower you with actionable information to make informed decisions.
Seamless Integration: Option for Seamlessly integration with popular accounting software, reducing the need for duplicate data entry and ensuring data consistency throughout your financial systems.
Drill down capabilities: Detailed information at your fingertips, you can dive deep into your lease data, uncovering important details and gaining a comprehensive understanding of your portfolio.
Costs and Cost Benefit Analysis
This change in accounting standards will inevitably result in increased costs, both direct and indirect, regardless of the solution you choose.
The change is primarily aimed at helping readers of financial statements and investors gain a better understanding of your financial position.
The availability of off-the-shelf solutions like payroll systems, CRM, or accounting software should be considered similarly when evaluating the cost to you of your lease accounting solution.
Diligence necessitates conducting a cost-benefit analysis that evaluates implementation costs, ongoing expenses, and potential risks against expected benefits such as increased efficiency, risk mitigation, indirect staff savings, alleviating additional pressure on senior staff, preventing potential audit fee increases due to changes in accounting standards, and avoiding audit overruns.
Factors to consider when selecting the Software Solution
Key considerations in selecting the right software solution include ensuring seamless integration with existing systems, aligning with modern AI platforms that fit your overall system strategy, adopting a strategy for hosted solutions, and prioritising privacy and IT security.
AI-powered leasing software can extract key lease details from agreements, enhancing compliance, reducing manual effort, and minimising misinterpretations for accurate generation of right-of-use assets.
Management Reporting
We strongly advise that the changes in lease accounting be fully integrated into your management reporting, i.e. the lease rentals will no longer be recorded as rental expenses in the profit and loss statement.
Under UK GAAP, accounting guidance recommends that management reporting aligns with statutory financial statements. This alignment reduces the risk of discrepancies, particularly in reports submitted to your bank for banking covenants.
We recommend maintaining the consistency in your current reporting lines. For example, your reporting lines for right-of-use depreciation charges related to office rent, vehicles, IT equipment, and other assets.
Ensure your approach aligns lease accounting transactions with your reporting structure and chart of accounts.
You should focus on aggregating your core asset classes to a level that provides adequate visibility for management and meets classification requirements under the standard, without becoming overly complex and difficult to manage.
Centralisation versus Decentralisation
Depending size and structure, does you organisation wish to main central control of the lease accounting function or the aim to decentralise the function to other stakeholders within the company.
The advantage of decentralising is making stakeholders responsible for main their lease portfolio for lease changes, and running their monthly journals and reports. The disadvantage of the loss of control which can be mitigated by effective training, strong controls, procedures and instructions.
FREE Lease Solutions PRO Knowledge Hub
Get the Clarity, Tools, and Support You Need to Navigate FRS 102 Lease Accounting
Built specifically for UK accountants and finance teams, the free LSP Knowledge Hub offers step-by-step guidance, practical tools, and implementation strategies.
It helps you simplify your 2025 lease position, reduce compliance risks, and stay fully aligned with FRS 102 Section 20 —without relying on costly external support.
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