Greek-owned businesses in the United States have long been a staple of the small-to-mid-sized business landscape—from family-run diners and bakeries to real estate ventures, import/export companies, and modern tech startups. These enterprises are known for their tight-knit management structures, deep-rooted community involvement, and strong emphasis on tradition. But in recent years, one modern financial challenge has pushed many Greek business owners to modernize: the arrival of ASC 842, the new lease accounting standard.
Like many other small and growing enterprises, Greek businesses are learning how to navigate this significant change in how leases are reported on financial statements. And while the adjustment hasn’t been without its challenges, many are beginning to see ASC 842 not just as a compliance obligation—but as an opportunity to strengthen financial practices across the board.
At its core, ASC 842 is an accounting standard issued by the Financial Accounting Standards Board (FASB) that requires businesses to recognize virtually all leases longer than 12 months as assets and liabilities on their balance sheets. Before ASC 842, many leases—particularly operating leases—were kept off the books and disclosed only in the footnotes of financial statements.
That’s now changed. Whether a Greek restaurant is leasing kitchen equipment, a Greek-owned construction firm is leasing vehicles, or a real estate group is managing commercial space, those leases must now appear in the form of Right-of-Use (ROU) Assets and corresponding Lease Liabilities on the balance sheet.
For many Greek business owners used to traditional accounting methods or legacy systems, this shift has forced a reevaluation of their processes. It’s no longer enough to simply track rent payments or equipment fees. Now, businesses must collect key data points about lease terms, discount rates, renewal options, and more—then calculate how those leases should be recorded under the new standard.
To help with the transition, many Greek-owned businesses—especially those with larger or more complex lease portfolios—have turned to professional guidance. The ASC 842 Lease Accounting Guide has become an essential tool for accountants and financial teams within these businesses.
This guide outlines the steps for identifying leases, classifying them correctly (as either operating or finance), and calculating the proper ROU asset and lease liability entries. It also explains how to amortize the asset over the life of the lease and how to account for lease modifications, terminations, and embedded lease components.
Greek-American businesses with ties to commercial real estate—like those managing rental properties or storefronts—are finding the guide especially useful. These companies often deal with varied lease terms, tenant incentives, and subleases that make compliance more complex. The guide helps clarify these gray areas and offers industry-relevant examples that resonate with these real-world situations.
One of the smartest moves Greek business owners are making is leaning into technology and specialist advisors. Many have upgraded from manual spreadsheet tracking to lease accounting software solutions like LeaseQuery, Visual Lease, or NetLease. These platforms help automate lease calculations, store documentation, and produce audit-ready reports—something that’s increasingly important for businesses seeking funding or going through audits.
Accountants familiar with ASC 842 have also become valuable partners. Whether in-house or through outside firms, these professionals help Greek business owners understand the new standard and implement practical solutions that match the company’s scale. In many cases, they’re also educating business owners on how lease accounting connects to larger financial goals—such as cash flow management, tax planning, and capital investment strategy.
For an authoritative resource on how ASC 842 affects private companies, the FASB’s official lease accounting resource page provides updated guidelines, FAQs, and background on the purpose behind the standard.
ASC 842 doesn’t just change how leases are recorded—it also encourages businesses to think more strategically about lease decisions moving forward. And that often connects back to marketing and growth strategies.
Take, for instance, a Greek café considering opening a second location in a new city. In the past, they may have signed a lease based on affordability or visibility alone. Now, with ASC 842 in play, they must consider how that lease will impact their balance sheet and financial ratios—especially if they’re looking to secure a business loan or attract investors. The cost of a long-term lease is no longer invisible; it shows up clearly as a liability.
Marketing teams or external consultants may need to collaborate more closely with finance before launching promotional efforts tied to new leased spaces. That might involve reassessing the budget, the timing of the launch, or even renegotiating lease terms to align with financial strategy. In this way, ASC 842 has bridged a gap between operational planning and financial compliance—bringing marketing and accounting into the same room.
Greek-American businesses have a long-standing tradition of personal, intuitive financial management—often relying on family-run operations, legacy advisors, and long-held instincts. But the introduction of ASC 842 has sparked a quiet but significant cultural shift: a move toward formalized, standardized financial processes that align with modern accounting expectations.
This isn’t just about compliance. It’s about building businesses that are scalable, fundable, and future-ready. By adapting to ASC 842, Greek businesses are better positioned to attract investment, pass audits, expand operations, and compete at a national level. They’re also learning to value deeper financial insights—not just for tax season, but for long-term decision-making.
One of the first steps in adapting to ASC 842 is identifying what qualifies as a lease—and it often goes beyond what most business owners expect. While most people think of leasing in terms of buildings or vehicles, the reality is far more nuanced. Greek businesses in America lease everything from entire commercial properties, like retail storefronts and restaurants, to small equipment, such as kitchen appliances, office furniture, or POS systems. In the hospitality sector, some lease event spaces, sound systems, or even coffee machines. In retail and food services, it’s not uncommon to lease neon signage, menu boards, or branded fixtures. Even digital billboards, storage containers, or fleet vans used for catering or delivery might fall under lease accounting rules. Under ASC 842, all of these lease commitments—regardless of size or visibility—must now be evaluated, tracked, and potentially recorded on the balance sheet if they meet the criteria. It's this diversity of lease assets that makes compliance both challenging and deeply tied to how each business operates day-to-day.
For many Greek-owned businesses in America, adapting to ASC 842 has been a challenge—but also a catalyst. It’s pushed them to modernize, to collaborate across departments, and to develop a more strategic relationship with their financials. While the initial learning curve has been steep, the end result is stronger accounting infrastructure and more informed business planning.
ASC 842 isn’t just an accounting standard—it’s a new lens through which Greek-American entrepreneurs can view their leases, their obligations, and their opportunities for growth.
