Never Use Spreadsheets to Determine Asset Depreciation
Spreadsheets are an all-too-common solution for organizing data and running important financial calculations. However, just because every business and organization has relied on a spreadsheet at some point in time does not mean it’s the effective, reliable choice. After all that’s why part of Visual Asset Manager’s mission is to take your organization from spreadsheets to asset management in 40 minutes.
Spreadsheets can be an effective means of maintaining some records but they certainly are not ideal for tracking assets definitely not the right method for calculating fixed asset depreciation. With so many potential causes and opportunities for error, companies must look to software solutions, like Visual Asset Manager, that are designed to automate, report and eliminate errors in critical financial data.
Here are 14 reasons why spreadsheets fall short for calculating asset depreciation:
- No pre-development design
- No documented purpose
- Meaningless cell references
- Dependencies are difficult to see
- Formulas are created manually, leaving room for human error
- Easily disorganized
- Must recalculate formulas in ever cell
- No version controls
- No audit trails or history
- Inconsistent data entry
- Security concerns
- Greater potential for fraud and/or sabotage
- Deficiencies in reporting
- Reconciling multiple worksheets can be difficult
While spreadsheets can offer assistance in important parts of business operations, it is clear that it cannot perform all tasks businesses face for fixed asset management. It’s important that your fixed assets are not overlooked – instead they should be properly recorded, calculated and tracked.