Here is a stark statistic. An estimated 88 per cent of spreadsheets include mistakes, and half of those used by big businesses have “material defects,” according to a recent report.
And those errors are costing businesses billions. JP Morgan’s so-called “London whale” fiasco, which led to a $6 billion loss, involved a spreadsheet mistake.
Canada’s Canopy Growth and Societe Generale are two other big names that have suffered big losses. The spreadsheet horror stories keep on coming and it’s not just the big businesses that are at risk.
The serious operational risk businesses are facing because of lack of control over their spreadsheets, or end-user computing (EUC) tools, has been highlighted in a new study by cloud-based application EUCPlus.
More than half the businesses polled admitted to not having a comprehensive policy governing the use of EUC applications, ultimately opening them up to significant risk.
Over 47 per cent of respondents said their organisation used over 1,000 spreadsheets for day-to-day functioning, and 30 per cent admitted that more than a quarter of the spreadsheets used were critical to the running of their organisation.
Little wonder that businesses are being encouraged to switch to accounting software as they grow and develop, in order to avoid potentially costly spreadsheet errors.
Also, when your spreadsheet template isn’t working, you’re on your own. Finding and fixing errors can be time consuming when you’re trying to get on with running your business.
There are other compelling reasons to ditch the spreadsheets, no matter how comfortable you may feel with them.
The bottom line is that spreadsheets lack the power that modern small business accounting requires.
The right accountancy software, linked to the cloud, can help you see the bigger picture when it comes to your business, aiding you in developing your strategy.
We can help businesses implement the right software solutions for them – which will allow them to work much more effectively.
To discuss what software will work best for your business please call me on 01772 430000.