Only 15% of UK firms use dedicated software for financial close. 67% still rely on Excel, creating data reliability risks that investors should watch.
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A new study from SixthFin and BM&A reveals that 67% of UK companies with more than 250 employees still use Excel for account analysis and reconciliation. Only 15% have moved to dedicated software. The result: 1 in 3 finance leaders questions the reliability of their own financial close data.
This is not a niche operational gripe. For investors, unreliable financial data means higher risk of earnings surprises, restatements, or compliance failures. The study surveyed UK finance leaders and found a sector stuck in manual processes despite the AI hype.
The financial close is the process by which a company finalizes its accounts each month or quarter. When it relies on spreadsheets, emails, and shared drives, errors propagate. 97% of finance leaders acknowledge the impact on workload; 93% say it affects employee motivation.
Stress sources are multiple and cumulative:
Less than half of finance departments consider their close management "very satisfactory." That gap between perceived reliability and actual process quality is a red flag for anyone relying on those numbers for investment decisions.
Manual journal entries (still used by 54% of firms), accruals in spreadsheets (57%), and calendar management in Excel (53%) are routine. Each manual step introduces potential for error, omission, or fraud. The study notes that insufficient reliability can lead to:
For a public company, any of these outcomes can trigger a stock price reaction. The risk is not theoretical – it is embedded in the operational reality of most large UK firms.
The study covers UK companies with over 250 employees. That includes many FTSE 350 constituents and large private firms. Sectors with complex revenue recognition, high transaction volumes, or multiple subsidiaries are especially vulnerable. Think financial services, retail, manufacturing, and technology – any sector where the close involves consolidating data from many sources.
Investors should watch for companies that have recently reported accounting issues, restatements, or delayed filings. Those are often symptoms of the Excel trap. Conversely, firms that have invested in dedicated close software (e.g., BlackLine, Trintech, OneStream) may have a competitive advantage in data reliability.
| Stress Source | Percentage of Leaders Affected |
|---|---|
| Deadlines | 96% |
| Tool quality | 93% |
| Parallel projects | 88% |
| Data reliability | 86% |
| Lack of time for analysis | 86% |
The study shows that 67% of finance leaders rank improving the reliability of accounts as their number-one priority. The move out of Excel is underway. Adoption of dedicated software and AI tools could significantly reduce manual error. 84% expect AI to help with automation of repetitive tasks; 80% expect improved reliability and anomaly detection; 77% hope for fraud identification.
If companies follow through on these priorities, the risk of data-driven earnings surprises should decline. Investors can track this by monitoring capital expenditure on finance systems, mentions of "close automation" in earnings calls, or analyst reports on enterprise software adoption.
The study also reveals that confidence in AI remains "fairly confident" rather than "fully confident." Adoption is real. Deep-rooted conviction still needs to be built. If companies rush to implement AI without first cleaning up their manual processes, they may simply automate bad data. The result: faster errors, not better numbers.
Additionally, the skillset gap is significant. 50% of finance leaders say the accountant of the future needs analytical and problem-solving capabilities; 28% say adaptability to new technologies and regulations. Without proper training, AI tools will be underutilized or misapplied.
Olivier Cornet, UK Country Manager for SixthFin and a leader at BM&A, notes that finance leaders must structure and secure the analysis and reconciliation phases before they can harness new technologies. The study's key insight: "Where AI executes, the accountant governs."
The path forward requires a combined skillset: analyst, AI pilot, and human decision-maker. Companies that develop this capability will reduce operational risk. Those that don't will remain in the Excel trap, with all the data reliability consequences that entails.
The study is a snapshot of UK large firms in 2025. The next concrete marker will be adoption rates of dedicated close software in annual reports and earnings calls. Watch for mentions of BlackLine, Trintech, or OneStream as signs of process improvement. Also watch for any increase in audit qualifications or restatements – that would confirm the risk is material.
For now, the data is clear: 1 in 3 finance leaders does not trust their own close figures. That is a risk event worth monitoring for any investor with exposure to UK equities.
For broader context on how operational risks translate into market moves, see our stock market analysis and a related risk event watch on KKR.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.