You would be hard-pressed to find an office that doesn’t use spreadsheets to collect and share important data. In this 4-part blog series, we explore several of the biggest problems with relying on spreadsheets, starting with the problem of basic math. According to an article posted on MSN Money, 88% of spreadsheets have errors in them. Can you be confident in the financial decisions you make based on spreadsheets with that statistic in mind?
Everyone uses them, relies on the data in them, yet spreadsheets can create an alarmingly high amount of risk that could put you out of business.In “ Spreadsheet screw-ups cost companies big money,” posted on Money.MSN.com by Jonathan Berr, JPMorgan discovered a spreadsheet disaster that led to the collapse of a commodities broker. The financial model being used by the brokerage firm had a formula flaw that showed credit derivative bets were half as risky as they really were. A year before the collapse, a consulting firm determined that their spreadsheets needed improvement.
Unless you are a mathematical genius, as well as a spreadsheet guru, you may be putting your business at risk by relying on spreadsheets for important business operations. A simple miscalculation in one cell of your spreadsheet, a basic mathematical error, can be misleading and send you in the wrong direction.
You can protect your business by using an enterprise resource planning (ERP) solution instead of spreadsheets. A solution like NetSuite® ERP can collect all of your business data and give you the information you need to make swift, smart business decisions. You can manage financials, supply chain and inventory, orders and shipping, and other core business functions from this powerful, integrated business management solution. You can have full visibility into your finances, invoices, contracts, and other financial activities, as well as maintain audit trails for compliance with taxing or regulatory agencies. The built-in business intelligence features makes it easier to monitor real-time data such as revenues, expenses, or inventory levels. Only an integrated solution, like NetSuite ERP, can provide the reliability you need to ensure you make decisions based on current, accurate data.
Spreadsheets serve a function and it’s not to manage critical business data, especially financial data. A powerful ERP solution can help you capture, analyze, and use your data with greater reliability than spreadsheets. Contact Kraft Enterprise Systems, LLC for more information about how NetSuite ERP can help keep your focus on your business, and not your basic math skills.
By Kraft Enterprise Systems, LLC, a NetSuite Solution Provider out of Tennessee