Does your business use spreadsheets? If so, you aren’t alone. A new report from AutoRek shows that over 90% of companies still use spreadsheets for managing critical business data and functions, from budgeting to forecasting.
Relying on these stalwarts of the business world might be holding you back, though. The report claims that using spreadsheets for business instead of more powerful tools thwarts your company’s growth trajectory, especially when adopting automation and other AI tools.
How Your Spreadsheets Are Holding You Back
There’s no question that spreadsheets have their advantages, primarily regarding familiarity. Your team knows how to use them and works with formulas for data analysis and reporting. However, while it’s easy to customize a spreadsheet to meet certain purposes, the result can be “spreadsheet sprawl” or a system that uses hundreds (or more) of sheets for different purposes.
Not only does this lack of a centralized source of truth slow down efficiency and make it more challenging to implement automation, but relying strictly on spreadsheets in business presents several other limitations, including:
- A greater risk of human error from manual data entry.
- Few, if any, data management features, such as version control and automation.
- Scalability challenges, as spreadsheets can only handle a limited amount of data and comparatively simple calculations.
- Limits on collaboration: It’s challenging for multiple individuals to work on the same sheet simultaneously.
Ultimately, these challenges can present some real risks to your business. Spreadsheets reduce productivity by requiring manual data entry and updates. Still, there’s a real risk of creating multiple versions of any given sheet, resulting in conflicting data and conclusions. Not to mention, spreadsheets (and their platforms) don’t adequately protect sensitive data and maintain compliance with applicable regulations.
Ditch the Spreadsheets To Stay Competitive
Transitioning away from spreadsheets to a modern software-based system that supports automation will increase confidence in your business decisions by increasing data clarity. Not only will you better grasp the big picture, but that picture will be more accurate. There’s less risk of human error, and you’ll always have the most up-to-date information.
What else can your company gain by leaving spreadsheets behind?
- Improved customization with software tools built to your company’s needs and priorities.
- Complete integration with other business tools, including your CRM and accounting programs, that provide a comprehensive business overview.
- Improved collaboration capabilities that eliminate the risk of inconsistencies and errors.
- Faster, more accurate data analysis and reporting, enabling you to spot trends and opportunities and take advantage of them sooner.
- Stronger security, thanks to built-in access control, user authentication, and encryption.
- Greater scalability with a tool that grows with your business.
Your company has many alternatives to using spreadsheets in business applications. From business intelligence platforms and project management tools to cloud-based solutions and enterprise resource planning (ERP) systems, you can streamline business operations, allowing you to use your company’s data better. Embracing these options can help your business get on track to unprecedented growth.
