Implementing lease accounting under IFRS 16, ASC 842 or the new FRS 102 requirements is only the first step. The real challenge comes afterwards, when finance teams must repeat the same complex calculations, updates and reporting processes every month.
As finance functions face increasing pressure to close faster, improve controls and do more with fewer resources, automation has become a strategic advantage rather than a nice-to-have. Industry leaders, including Deloitte and KPMG, continue to highlight automation and AI as key drivers of finance transformation, enabling teams to reduce manual effort and spend more time on analysis and decision-making.
Here are five lease accounting processes every finance team should consider automating.
1. Lease data capture
Every lease accounting process starts with accurate data. Manually reviewing contracts, extracting key terms and entering information into spreadsheets is time-consuming and increases the risk of errors.
AI-powered contract extraction is changing this process by automatically identifying key lease information. While professional review remains essential, AI can significantly reduce implementation time and improve consistency, particularly for organisations managing hundreds of lease agreements.
2. Monthly calculations and journal entries
Calculating lease liabilities, right-of-use assets, depreciation, interest and journal entries every month is repetitive work that is ideally suited to automation.
An anonymised manufacturing business reduced several days of month-end processing simply by automating recurring lease calculations, allowing the finance team to focus on reviewing exceptions rather than rebuilding spreadsheets.
3. Lease modifications and reassessments
Lease extensions, early terminations, CPI increases and changes in lease terms often require complex recalculations. These events are among the most common causes of accounting errors because they are infrequent and difficult to process consistently.
Automating lease modifications helps ensure calculations remain compliant while reducing the risk of manual mistakes.
4. Reporting and audit evidence
Producing disclosure reports, maturity analyses, roll-forward schedules and supporting audit evidence should not involve hours of manipulating spreadsheets.
Auditors increasingly expect clear audit trails showing what changed, when it changed and who approved it. Automated reporting provides consistent, audit-ready information while reducing pressure during month-end and year-end reporting. Our article on common IFRS 16 audit findings covers what auditors tend to pick up.
5. Portfolio monitoring
Modern lease accounting is about more than calculations. Finance teams also need visibility across their entire lease portfolio.
Automation can identify upcoming lease expiries, missing documentation, unusual balances and contracts requiring reassessment. Instead of reviewing every lease individually, finance teams can focus on the relatively small number of leases that genuinely require attention.
The Bottom Line
The biggest benefit of automation is not simply working faster. It's creating a more controlled, consistent and scalable lease accounting process.
As lease portfolios grow and reporting requirements become more demanding, relying on spreadsheets becomes increasingly difficult to sustain. Modern lease accounting software helps automate repetitive tasks, improve audit readiness and reduce operational risk, while allowing finance professionals to focus on higher-value activities.
If you're assessing whether your current processes are fit for the future, Rubli helps organisations automate lease accounting across IFRS 16, ASC 842 and FRS 102 with AI-assisted contract extraction, automated calculations and audit-ready reporting.
