Excel is a staple of many finance departments, but is it still fit-for-purpose? Mark Jenkins suggests it’s time to put the spreadsheets away and explore data management.

In a world filled with cutting-edge technology and tools designed to maximise efficiencies, it’s surprising to find that many finance teams are still highly reliant on static spreadsheets.

For too long, they have been held back by time-consuming, laborious administration standing in the way of opportunities to reshape their roles and drive progress in their industry.

This valuable time could be spent exploring business strategy or expanding the financial knowledge and expertise that could open further doors to growth and innovation.

The time for this shift to happen is now, but it will only possible be possible if finance professionals take charge and become true proponents of tech innovation. 

Stuck on the spreadsheet treadmill

Excel is deeply engrained in the culture of many finance departments. It is seen as a ‘safe’ and familiar tool, so why change it?

Spreadsheets owe their ubiquity to the reluctance in many organisations to spend on innovative tools and processes. It can be hard to say goodbye to the only business analytics tool you have ever known.

And, you do have to hand it to Excel. It is great for rudimentary calculations. Its shortcomings in today’s global and interconnected financial ecosystem are now more obvious than ever.

In a world increasingly driven by collaboration and information-sharing, Excel is simply not up to the job of providing the multi-user support and complex, real-time data analytics needed for successful financial modelling and forecasting.

There is also a crucial aspect of security, which Excel does not help to support. In a recent survey we conducted, 34 percent of finance leaders we questions said unsaved spreadsheets and lost documents posed the highest risk in their role.

In light of this, it is perhaps time for organisations to prioritise data integrity and move away from outdated tools.

It’s time to reassess the values

High dependency on legacy processes is also hindering the strategic potential of finance leaders and their teams.

MHR’s survey found that 44 percent of leaders are left out of business strategy conversations, as they find themselves overwhelmed with bulky manual processes.

These processes waste time and stop skilled and talented finance professionals from realising their potential and proving their value to the business.

This legacy mindset seems thoroughly at odds with the digital transformation happening across all industries. If finance leaders want to enable the data analytics revolution, they must leave Excel in the past and embrace smarter tools.

Automation will combat stagnation

As organisations accelerate digital transformation, finance teams need more suitable and easier ways of processing data. By implementing agile and collaborative scenario-planning solutions, they can seamlessly plan and model for the future, allowing them to use insights to shape longer-term business strategies. This is where automation comes in, offering a golden key to future-proofed finance operations.

Through automation, professionals can free up time to undertake more business-critical endeavours and provide forward-thinking strategic advice at board level.

Automated processes support teams in boosting their compliance, accuracy, and data security—considerably lightening the load.

With a fit-for-purpose and integrated corporate performance management solution, financial teams can open themselves up to a whole new world of possibilities.

With the reality of much greater agility and improved efficiencies, it is time finance teams close their Excel spreadsheets for good and look towards a brighter tech-enabled future.

Mark Jenkins is Chief Finance Officer at MHR International