Generally, businesses use spreadsheets for financial calculations and budgeting. But these are not proper tools because of their labour-intensiveness and time-taking efforts. NetSuite planning and budgeting platform can solve the problems faced in using spreadsheets.
Error-prone Data
The chances of error are high when you manually enter data in spreadsheets or copy-paste from one sheet into another. Also, if you make a last-minute change in one sheet and forget to do it in another (since it is not linked), it may have serious consequences. This affects the preparation of budgets, forecasts, and financial planning because you have data errors.
In the case of the NetSuite planning solution, you do not need to make separate datasheets for all departments; a shared data repository is available to all. If you make one change in any sheet, it reflects in all the linked sheets and calculations. Thus, there are no chances of errors.
Fragmented and Old Data
Spreadsheets do not give a complete picture of your financial performance because of no real-time updating. At one point in time, it gives you a view of the historical data you have entered and saved. If you do not put the latest numbers, you cannot provide the actual status of your financial performance.
Also, spreadsheets lead to fragmented data because every department enters and saves data required for their own analysis. Thus, you get a fragmented analysis of the company’s performance, but not as a whole. It can affect your strategic decision-making.
Time-Taking Activity
Spreadsheets require you to spend a lot of time manually adding entries, updating links and formulas, and transferring the data from one sheet to another. Also, it is difficult to share these sheets with other departments; hence, a lot of time goes into data consolidation. Such time-taking activities delay your preparation of financials, budgets and other data-intensive documents.
The best part about the NetSuite planning and budgeting module is the time you save because there is no requirement for lengthy calculations or copy-pasting data from one sheet to another. Thus, you save time, which can be used to focus on core decisions.
Data Consolidation
When you use spreadsheets, every department prepares its own. To get a business-wide view of your financial performance, you need to consolidate data from different spreadsheets into a single master sheet. There are possibilities of change in business conditions during the consolidation of data. Hence, the final data may not give the actual, updated picture.
Consider a similar case when multinationals with subsidiaries spread over different countries consolidate data. Most prepare data in local currencies and languages and with varying accounting rules. In such cases, it is a big challenge to consolidate data.
A single data repository shared between all departments and business units in the NetSuite planning and budgeting solution makes the calculations easier and faster.
Collaboration
Spreadsheets involve formulas and links, which employees forget to add when copy-pasting to other sheets. Errors, once made, feature in other spreadsheets as well when copy-pasted. Also, employees update the numbers in one sheet and forget to update in others. All this leads to many mistakes and inaccuracies, which are also reflected in the budget.
Thus, the collaboration between departments is difficult to achieve with spreadsheets. And without collaboration, departments use non-updated data, leading to misaligned decisions. All of this leads to more confusion and non-achievement of goals.
Collaboration is easier in the NetSuite budgeting solution because every team has access to the same master file. It leads to faster discussions and decisions.
Advanced Analysis and Reporting
In spreadsheets, it isn’t easy to look at data from multiple dimensions. This limits the scope of analysis, and generating more insights becomes a challenge. You cannot look at all factors; thus, decisions may exclude certain business aspects. Specifically, when the business conditions change continuously, advanced analysis and reporting are challenging in spreadsheets.
NetSuite Planning and Budgeting reports help management take informed business decisions resulting in higher profitability and achievement of business goals.
Benefits of NetSuite Planning and Budgeting
- You have better control over your data because of automation and real-time updates.
- The in-built templates and frameworks help make the work easier, more accurate, and faster.
- It leads to effective collaboration between departments for data and inputs because of a single, shared repository.
- You get complete visibility of business performance through insightful reports and dashboards.
- Transparency is higher because the same processes are used across the company, leading to the monitoring of changes.
- You can compare actual vs budgeted easily to track your performance and make decisions.
- Errors and time to prepare financial data reduce, leading to more efficiencies and productivity.
- You can monitor your headcount, track their performance, and plan your workforce.
Thus, with all these benefits to your financial processes, you must soon contact a NetSuite planning and budgeting implementation partner. The merits of this platform will add more value to your business with a reduction in effort and efficiency in processes.