Finance departments’ dependence on moth-eaten technology to manage their budgeting, forecasting and reporting is damaging their business performance.
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Some 78% of finance teams still rely on spreadsheets as their primary budgeting and forecasting tool, according to business performance management (BPM) specialists Adaptive Planning and BPM Partners.
Although spreadsheets are cheap, companies pay dearly in the time taken to produce reports. Over half of mid-sized companies take three or more months to complete their annual budget, rising to 68% for large firms. A quarter of that time is wasted on low-grade tasks such as sending out and receiving spreadsheets and checking for errors.
Despite the time devoted to budgeting, 88% of companies say their final budgets varied from actual results by 5%.
Using BPM software, the survey suggests, can help reduce time wasted chasing spreadsheets. Companies also need to involve managers in the budgeting and forecasting process to improve the accuracy.