In a world filled with technological advancements and tools designed to bring maximum efficiencies, it is surprising to find that many finance teams are still highly reliant on static spreadsheets. This news comes following a survey* which has revealed that over half (51%) of finance leaders depend solely on Excel for their processes. This figure certainly isn’t an homage to the practicality or intuitiveness of the 30-year-old software tool, although it has served its purpose well over the decades. It is unfortunately a reflection of the industry’s lack of tech investment.

For too long, finance leaders have been held back by time-consuming, laborious admin tasks that stand in the way of multiple opportunities to reshape their roles and actively drive the future directions of their industries. This valuable time could be better allocated towards facilitating fruitful business strategy conversations or expanding on the financial knowledge and expertise that could open further doors to growth and innovation. The time for this shift to happen is now, however it is only possible if finance professionals take charge and become true drivers of tech implementation.

Stuck on the spreadsheet treadmill
There is no doubt that Excel is deeply engraved in the culture of many finance departments. It is seen as a ‘safe’, already known tool, so why change it? Spreadsheets owe their ubiquity to organisations’ traditional reluctance to spend out on innovative tools and processes. It can be hard to say goodbye to the only business analytics tool you have ever known.

We must give it to Excel. It is great for rudimentary calculations. However, its shortcomings in today’s interconnected global finance ecosystem are now more obvious than ever. In a world that is increasingly driven by collaboration and information sharing, Excel is simply incapable of providing the multi-user support and complex, real-time data analytics needed for successful financial modelling and forecasting.

There is also a crucial aspect of security, which Excel does not exactly help to support. We all remember the time when nearly 16,000 positive Covid cases vanished from Public Health England’s contact tracing system in a high-profile IT glitch as it had run out of numbers. With 31% of finance leaders considering unsaved spreadsheets and lost documents as the greatest risks of their role, such costly and embarrassing errors should prompt organisations to prioritise data integrity and move away from outdated tools.

It’s time to reassess the values
High dependency on legacy processes is also hindering the strategic growth of finance leaders and their teams. MHR’s survey found that 44% of leaders are left out of business strategy conversations, as they find themselves overwhelmed with bulky manual processes. It is a simple time-wasting job of copying and pasting values that neither brings joy nor any efficiency. It stops skilled and talented finance professionals from realising their potential and proving their value to the business, as well as risks the whole organisation being left behind in the race towards the innovative future.

It is the technical debt and legacy mindsets that are holding finance teams back from flexing in their role and utilising their expertise to drive important strategic initiatives. This seems thoroughly at odds with the digital transformation happening across all industries. If finance leaders want to enable the data analytics revolution, they must leave Excel in the past and embrace smarter tools.

Automation will combat stagnation
As organisations accelerate their digital transformation journeys, finance teams need more suitable and easier ways of processing data. By implementing agile and collaborative scenario-planning solutions, finance departments can seamlessly plan and model for the future, allowing them to use their insights to shape longer-term business strategies.

This is where automation comes in, offering a golden key to future-proofed finance operations. Through automation professionals can free up the all-important time to undertake more business-critical endeavours and provide forward-thinking strategic advice at board level. Automated processes support teams in boosting their compliance, accuracy, and data security, considerably lightening the load.

With a fit-for-purpose and integrated corporate performance management solution, financial teams can open themselves up to a whole new world of possibilities. Such solutions go beyond basic financial planning; they can help with extended planning and analysis, enabling finance leaders to make more efficient strategic decisions as they benefit from better visibility into the data. With not only the promise but the actual reality of much greater agility and improved efficiencies, it is time finance teams close their Excel spreadsheets for good and look towards a brighter technological future.

*Survey MHR