Spreadsheets & real-time data: your financial power duo

In a business landscape where decisions are driven by data, having up-to-date financial information is crucial. But how do you balance tried-and-tested tools like spreadsheets with the need for more agile, real-time reporting??

In this two-minute read, we'll explore how spreadsheets remain a valuable tool for financial reporting, where they might fall short as your business grows, and how real-time reporting can complement your existing processes.

The evolution of financial reporting?

Spreadsheets have been a cornerstone of financial reporting for years, loved by accountants and finance professionals for their versatility and familiarity. But as businesses grow and data becomes more complex, challenges can arise that make it harder to keep up with the demands of modern financial management.

"It's really difficult, with the Excel side of things.?Obviously, it's a great tool for numerous things, but at the same time, it's all very manual, and one simple mistake can kind of lead to numerous things going wrong throughout the process." - Megan Leet

Why spreadsheets still have a place?

While the push towards cloud technology is strong, it’s important to recognise the strengths of spreadsheets and why they remain a favourite tool for many accountants and finance professionals:?

• Flexibility: Whether you’re building complex financial models, performing detailed what-if analyses, or customising reports for specific clients, spreadsheets allow you to tailor everything to your exact needs. This flexibility makes it a go-to tool choice for tasks that require specific and unique inputs. ?

• Familiarity: For many professionals, spreadsheets are a trusted companion. Years of experience using spreadsheets mean that many accountants can navigate and manipulate spreadsheets with ease, making them highly efficient at certain tasks. This familiarity can be especially valuable when quick adjustments or custom reports are needed. ?

• Analytical capabilities: Spreadsheets are packed with features that allow for in-depth analysis, from pivot tables and advanced formulas, which make it a strong choice for detailed financial analysis. ?

• No internet required: One of the often-overlooked advantages of spreadsheets is that they don’t require an internet connection. This makes them particularly useful in environments where connectivity might be an issue, or when working remotely without reliable access to the cloud.

When spreadsheets can fall short?

• Data delays: Spreadsheets need to be manually updated. This means that by the time you’ve gathered, consolidated, and reported your data, it’s likely already out of date. Decisions based on old information can lead to missed opportunities.?

• Error-prone processes: We’re all human, and mistakes happen. A small error in a formula or a misstep in data entry can cause big problems down the line, leading to reports that don’t tell the full story.?

• Limited scalability: As your business grows, the amount of data you handle increases. Spreadsheets can struggle under this pressure, becoming slow and unmanageable to work with, which increases the risk of errors.?

• Lack of real-time insights: Spreadsheets are static, meaning they don’t offer the real-time insights that today’s businesses need. Without access to live data, it’s harder to make informed decisions quickly.

"I started doing consolidations in 2001 using the ‘master spreadsheet’. I hate to say it, but I spent months and months maintaining spreadsheets of 60.70 tabs, trying to build formulas to automatically consolidate. The trouble was they were always prone to error."?- Tyler Caskey

We’ve heard from many customers who have shared their own spreadsheet nightmares—real stories of how this well-loved tool can become a source of frustration and setbacks at crucial periods. You can read more about the experiences of our community of accountants in our article, ‘Spreadsheets: The Tool You Love That Can Become a Nightmare’.??

Why does real-time reporting matter??

Nowadays having access to real-time financial information isn’t just a nice-to-have—it's essential for staying on top of things. Let's explore why real-time reporting makes such a difference.?

• Speed of Decision-Making: Making quick, informed decisions is crucial. According to a survey by 德勤 , 49% of finance leaders believe that leveraging real-time data analytics significantly improves decision-making processes. When you have up-to-the-minute data, you can confidently respond to opportunities and challenges as they arise, rather than relying on information that might already be outdated.?
• Revenue uplift: Real-time data analytics is already making a significant impact on enterprise revenue. A report from the Centre for Economics and Business Research and KX found that 80% of companies surveyed experienced a revenue uplift as a direct result of implementing real-time data analytics.
• Enhanced Financial Visibility: Real-time reporting offers a clear, up-to-date view of your financial health, making it easier to monitor key performance indicators (KPIs) and identify trends early. A joint survey by ACCA and IMA revealed that 62% of companies globally recognize big data as crucial to their future success, with the potential to gain a competitive edge.

• Informed Strategic Planning: Strategic planning is all about looking ahead, and real-time data is crucial for making accurate forecasts and setting realistic goals. A survey by Gartner revealed that businesses using real-time analytics are twice as likely to exceed their financial targets compared to those that do not. With timely insights, you can identify trends and make proactive decisions that drive success.?

Finding the balance?

Embracing cloud technology doesn’t mean leaving spreadsheets behind. It’s about enhancing your toolkit to work more efficiently. Many accountants are finding that this balance allows them to meet the demands of modern financial management without sacrificing the tools they trust.?

As your business grows, integrating cloud technology can help you stay ahead. By combining the strengths of both, you can gain real-time insights, reduce manual workloads, and ensure your data is always reliable.

Want to find out more about leveraging cloud technology to balance the drawbacks of manual spreadsheets and embrace a more dynamic way of working? Take a look at Fathom’s features here.?

Until next time,

Team Fathom ??

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