Financial directors may be putting their companies at risk by continuing to rely heavily on Excel spreadsheets when it comes to managing their capital assets register.
How an organisation manages its assets has multiple effects on a company’s finances, from tangible costs of heightened insurance premiums through to neglected depreciation. Having an accurate and robust asset register that shows the location, value and condition of assets can also help ensure that resources are available and usable when needed as well as achieving compliance with key industry legislation. And whilst spreadsheets are adequate for collecting basic data, there are several reasons for switching to a bespoke system designed to cope with these intricacies.
Too many spreadsheets contain errors, which is to be expected with information entered by hand. Whether it be the background asset data or the formula itself, there’s little doubt that depreciation calculations, when based on a spreadsheet, are likely to be inaccurate – potentially affecting the overarching balance sheet. Furthermore, with the raw data within a spreadsheet dictating that each report be constructed individually using complex macros, this also wastes valuable time and resources at month-end.
Compliance with the latest legislation including IFRS, Sarbanes-Oxley (SOX) and SORP consists of improved financial management and increasingly detailed reporting. With such a high degree of attention focused on your organisation, why would you risk the integrity of your financial data by relying solely on spreadsheets, which are inherently unstable and invariably achieve poor audit results?
For more information on how your organisation could benefit from implementing a specialist asset register and making the move away from spreadsheets, contact RAM today at email@example.com or call on (0)1689 892 137.