Why spreadsheets are not the ideal solution for your business

Many entrepreneurs use spreadsheets to keep track of nearly everything in their business. Whether it’s for financial reporting or payroll admin, there’s likely to be an exhaustive Excel document crammed with information-dense tables and multitudes of cells about the company’s operations.

It’s easy for small and medium businesses to get comfortable using spreadsheets. They are a widely accessible solution for admin work that has become an industry standard. However, reliance on spreadsheets leaves room for potentially damaging human error because they do not completely automate admin tasks and processes.

For example, the person working with the spreadsheet may need to cut-and-paste data from other paperwork or apps or even type it in manually. As a result, mistakes can creep in that lead to inaccurate calculations. The result – someone will need to go through the spreadsheet to find and fix the error. Or even worse, the business could make decisions based on incorrect figures.

Maintaining spreadsheets, correcting data input errors and keeping version control can be a drain on time.  Sage research has shown that globally, companies lose 5.27 percent of total time to administrative tasks. Accounting takes up the largest portion of admin cost by departments at 14.8 percent, followed by generating invoices (14.1 percent), processing received invoices (12.6 percent) and HR (12.4 percent).

Plus, although spreadsheets are easy to use, they lack essential features such as data analysis or business intelligence reports. Just like large businesses, small and medium businesses must use data-derived insights to inform business decisions if they are to remain competitive.

For all these reasons, businesses that are rapidly expanding or scaling up should think about whether spreadsheets are still fit for purpose and weigh their options. The business case for automation via solutions such as cloud-based payroll and accounting software is clear. Not only can it save time and money, it can also give people the time and space to focus on strategy, creativity, innovation and relationships – areas where the human touch adds value.

What’s more, with the global focus on compliance, automated systems can take care of calculating the complex formulas for the various payroll deductions, generating compliance reports, and keeping accurate records. A good solution is constantly updated to align with the latest requirements – such as the recent introduction of VAT in the Gulf Cooperation Council (GCC) countries.

Entrepreneurs don’t go into business because they love doing admin. A good payroll and accounting solution can save them dozens of hours a year. Plus, they can rest easy knowing that automation reduces the possibility of human error. The right software takes the pain out of compliance, allowing business owners to focus on business strategy, customers, and employee engagement rather than on red-tape.

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© Press Release 2019