GET OFF OF SPREADSHEETS: AVOID FINANCIAL RISK
A quick Google search of “high profile spreadsheet errors” will turn up enough examples to scare any C-suite executive still relying on them, and in recent years, some of these figures have been large (in the billions, not thousands). Simple mistakes made by competent professionals can have significant impact when those calculations are being used to make financial decisions. Not only can these errors cost firms money directly, they can also come with additional fines from regulators that turn injury into… more injury. The good news is that there are other options than to rely on a complex spreadsheet.
The most common reasons cited for financial errors from using spreadsheet based data management are copy and paste, typos and formatting errors. More rarely, but with greater impact, is when an expert professional is out for the day and a substitute needs to execute a macro that only one person really knows how it works. A reliance on spreadsheets is actually a reliance on absolute organizational perfection, not to mention a key employee risk. Yet, despite the lack of oversight and formal controls, these calculations are still used by finance, accounting, sales, and operations to make critical business decisions.
Another complication is, who owns the actual data that is fed into spreadsheets. Data often sits in multiple business lines and may be touched by a number of departments before it is consumed by the spreadsheet user. No one person or group is tasked with validating the set as a whole. Unfortunately, there is no practical way for the end-user to know what is right or wrong when delivering their conclusions that result in financial decisions.
These spreadsheet risks are recognized by front, middle, and back office personnel as a real problem. Sometimes groups are afraid to take on what seems to be the daunting task of replacing spreadsheets in favor of a stable application that validates data and ensures consistency in calculations. At the same time, the increasing potential for financial risk has become too pressing to avoid.
If you want to be a player in this space, it’s time to act. The choice is yours! Learn how our powerful reporting solution can help you deliver the customized performance data your clients need. Visit www.arconstech.com
