If there’s one thing pretty much common to EVERY business, it’s the Microsoft Excel spreadsheet.

Of course, Microsoft wasn’t always the big kid on the block. Along with Flight Simulator, you could make the case that one of the key reasons we even have personal computers today is the value of the ubiquitous spreadsheet. And for many years, Lotus 1-2-3 ruled the roost by dominating desktops across the US and even worldwide.

But over time, even mighty 1-2-3 couldn’t stand up against the Microsoft Office juggernaut. In 2014, support for the product ended, leaving the battlefield for rows and columns forever.

But with business’s heavy reliance on the number-crunching capabilities of Excel comes risks. As spreadsheets increased in complexity, concerns over the validity of the data provided grew.

Tiny errors in data entry, formulas, or security can produce massive headaches. Boeing experienced a leak of employee personal data due to a hidden column. Tesla’s investment in Solar City experienced issues after the company was undervalued by $400 Million due to double-counting debt listed in the spreadsheet.

According to the European Spreadsheet Risks Interest Group, problems with spreadsheets include:

• Human Error – recent research indicates that about 50% of the spreadsheet models used by large businesses have significant defects.
• Fraud – spreadsheets are the perfect medium for committing practically undetectable fraud.
• Overconfidence – if you aren’t diligent in constantly checking/rechecking yourself, it’s almost a given you’ll make mistakes.

Because of this, an entire industry has emerged where accountants, auditors, and Excel power-users band together to help companies review their spreadsheets to ensure they’re accurate and trustworthy.

Attention to detail is not just important in business – it’s also key when it comes to financial planning, and it’s one thing we pride ourselves on. For your free 15-minute call, contact us at 513-563-PLAN (7526) or book online today.

Regards,
Nikki Earley, CFP®