Note: Running most Fridays in FromGregsHead.com, this is a continuing series of budgeting tips brought to you by Ventana Research and PKF Texas. These run Saturday mornings during the BusinessMaker’s Radio Show on SuperTalk 97.5. Audio files can be found on the Entrepreneur’s Playbook page of the PKF Texas website.
The electronic spreadsheet was a breakthrough because it automated the most time consuming part of manual budgeting and eliminated errors caused by purely arithmetic processes. In theory, spreadsheets should allow organizations to collect detailed information from every individual with budget authority and roll it up into a consolidated view.
In reality, two decades of results has shown that numerous issues routinely occur making it difficult to achieve ideal results. Common problems include:
- Broken links or formulas
- Consolidation errors
- Using the wrong data
- Using the wrong/incorrect formula
By removing the spreadsheet barrier, expanding participation and focusing people’s efforts on thinking and analyzing on the right level of detail rather than spending time on the mechanics of communicating number back and forth, companies are to get more out of the process. Dedicated budget and planning software can do more than make the process strategic and accurate.