Many new business owners start out using a spreadsheet to track expenses, inventory, and other important information for their business. When the business is very small, with only a few employees, if any, a spreadsheet can work ok. However, there is a huge potential for issues, especially as the business continues to grow. Instead, custom software can eliminate the potential for any problems with the information being tracked and can be an easier way to track. Learn more about the potential problems with spreadsheets now to find out why you’ll want to switch to custom software.
All Too Easy to Miss Mistakes
Almost 90% of all spreadsheets used by companies have errors in them. Most of the time, these errors can go unnoticed until they snowball into a much larger issue. Errors can happen when the wrong formulas are used, the data isn’t kept up to date, or when someone’s finger hits the wrong button while they’re entering the data. Even a small error can end up having a much bigger impact in the long run.
Copy and Paste Doesn’t Mean Entries are Correct
One way to reduce the potential for a number to be entered correctly is to copy and paste the information. This can save time as well, but it can contribute to more errors. If the person entering data accidentally presses paste twice, copies the wrong number, or doesn’t copy the next number and instead pastes the previous number twice, it’s an error that could be easily overlooked. Plus, if the information that’s being copied isn’t correct, the issue may go unnoticed in the spreadsheet.
Too Many Versions Causes Complications
Spreadsheets are always being changed, and that can lead to problems as well. When multiple employees are working on the same spreadsheet, they may end up working on different copies with different information. One employee may start working on the spreadsheet and not realize that a different employee has just saved a new copy. The copy the first employee was working on is no longer up to date, and information could be missed that needs to be entered.
Troubleshooting Formulas Can Be Difficult
Formulas are often used to help track information, find totals, and more. When the wrong formula is used, or the formula doesn’t cover all of the necessary information, it leads to issues with the resulting numbers. Relying on these formulas when they’re not correct can lead to major errors. For example, with finance tracking spreadsheets, formulas could show a cash flow that’s very different from what the actual cash flow for the business is.
Spreadsheets are often used when business owners are just starting out, but they likely have errors, and this can get out of control quickly, leading to serious issues for the business. Instead, custom software makes it easy to track any important business data and processes, allows for errors to be found before they become worse, and is easier for employees to use together to keep track of the business.