Using spreadsheets? How accurate is your data?

Report with a handwritten question mark next to a number, representing inaccuracies that can occur when using spreadsheets to record financial information

Even after being extremely careful to ensure all data is entered correctly and accurately, we can’t deny that, when working with spreadsheets, the chances of something going wrong are very high.

One mistake can make a huge difference in the overall picture and, as detecting mistakes isn’t always simple, one small slip up could start a domino effect.

 

Studies show that 88% of spreadsheets used at companies contain errors.1 With this figure in mind, and considering how many companies use spreadsheets to run their business, the potential for major misreporting is a concern.

 

Spreadsheet blunders

In 2015, the Telegraph published an article2 stating that “almost one in five large businesses suffered financial losses as a result of errors in spreadsheets” and went further to say that “spreadsheet calculations represent up to £38bn of British private sector investment decisions per year, data harvested through YouGov. Yet 16% of large companies have admitted finding inaccurate information in spreadsheets more than 10 times in 2014.”

 

It’s not hard to find examples of unacceptable situations as a result of spreadsheet mistakes. For example:

 

Besides mistakes on spreadsheets…

It’s not only the risk of mistakes on spreadsheets that can impact companies’ financial position. As the process is usually manual, it is also very time consuming. How much could this cost your business?

 

How can you guarantee security and data integrity when using spreadsheets?  As spreadsheets could be used by several staff members, shared via non-secure channels (such as emails), it is difficult to have control over who can modify or see your information.

 

LIBRIS Financial

With LIBRIS Financial, you reduce the chances of manual error, as well as improve efficiency on financial processes. Our software performs all calculations for you and issue warnings for any discrepancies as soon as the data is entered, meaning you can easily and quickly amend it to ensure your information is always accurate.

 

The system can be hosted by you or us, with our ultra secure Hosting Service. Each user has their own login details and a full audit trail of changes and access privileges is maintained.

 

LIBRIS Financial has been developed with a wide range of functionality, making it able to fit 100% with your business processes.

 

If you’d like to discuss your requirements, don’t hesitate to contact us: send us an email on info@exactsystems.co.uk or call us on +44 (0)207 256 1234.

 

Sources:
1. http://www.cnbc.com/id/100923538
2. http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11518242/Stupid-errors-in-spreadsheets-could-lead-to-Britains-next-corporate-disaster.html
3. https://www.theguardian.com/politics/2013/apr/18/uncovered-error-george-osborne-austerity
4. http://www.telegraph.co.uk/sport/olympics/8992490/London-2012-Olympics-lucky-few-to-get-100m-final-tickets-after-synchronised-swimming-was-overbooked-by-10000.html
5. http://www.businessinsider.com/2008/10/barclays-excel-error-results-in-lehman-chaos?IR=T
6. http://www.express.co.uk/finance/city/276053/Mouchel-profits-blow
7. http://www.businessinsider.com/excel-partly-to-blame-for-trading-loss-2013-2?IR=T