This article will dive into where global finance teams should use Excel, and where Excel is not enough.
Excel began life as a simple spreadsheet software tool following its first release by Microsoft on September 30, 1985. Over the years, it has evolved into a complex solution, providing users with 3-D charts, macros, PivotTables, map charts, and customization capabilities. Today, Excel is the staple spreadsheet software solution used by accountants all over the globe. However, the office of finance needs to reconsider relying on Excel as its only trusted tool, as it cannot support the complex needs of global enterprises on its own.
This article will dive into where global finance teams should use Excel, and where Excel is not enough.
Let’s explore:
- Where Excel excels for today’s finance teams
- The case for an Excel alternative
- Failure case 1: Fixed assets management
- Failure case 2: BEPS Pillar 2
Where Excel excels for today’s finance teams
With its array of spreadsheets, charts and formulas, easy availability, and strong brand behind it, it’s easy to see why Excel is the go-to tool. It can track and manage vast amounts of data, and create charts and reports. Users can analyze trends, and obtain an overview of the business’s performance.
In a nutshell:
- It’s cheap and accessible – packaged nicely with the Microsoft 365 Office suite
- There are no limits on the amount of information that can be added
- Built-in formulas take care of mathematical calculations
Excel is ideal for smaller businesses with simpler accounting needs, and for accountants with limited financial resources, especially if Excel is the only tool available. There are also a myriad of uses for larger businesses, and for accountants with significant volumes of clientele.
The case for an Excel alternative
That said, there are many times when Excel alone is not up to the task. It has hundreds of built-in formulas, but these can’t meet the needs of everyone. Finance teams are then burdened with the task of creating complex formulas, requiring substantial time and effort on their part. Excel is also reliant on manually entered data. It doesn’t always know what you want from it, you must tell it, and it won’t always let you know if you’ve made a mistake.
Is Excel the right solution for every use case? In short, no. Excel has come a long way, but so have the needs of finance teams, and with the ever-evolving complexities in financial accounting, software needs to be smart.
In short, Excel is insufficient when:
- Attempting to manage a vast number of fixed assets
- Wrangling with the complexities of Global Minimum Tax
