Often, business needs may require radical changes in calculation models, essentially in calculation formulas in financials or operations. These changes may be a result of both regulatory amendments, for example, tax and interest rates, the introduction of, and a company's internal processes. The latter ones often undermine changes in the calculation of depreciation periods, the pricing system, accounting methodology and inflation forecasts.
Such features are usually included in special software for planning, reporting and budgeting, such as business performance management software, strategy and operational planning (S&OP) software, resource planning software and software for financial analysis and planning (FA&P). Here we will look at the whole range of business intelligent tools to analyze the pros and cons of them.
Excel for business preformance management, planning, budgeting and so on
Usually, companies of small or medium sized businesses use financial and operational models for planning and budgeting tasks that are built on the basis of MS Excel spreadsheets, then in special planning and budgeting software. However, making a single amendment can provoke a time-wasting process. This may be a result of the fact that usually the calculation models are divided into different Excel files due to Excel data processing limitations. For example, the budget of one department may be placed in one Excel file, the budget of another department may occur in another Excel, consolidation of budgets may be handled in the third Excel file. As we can see from the example, the calculational model may be divided into three or even more Excel files, in every of which a user needs to make changes. Oh, sorry we forgot about budgeting templates to fill in, add them to the list of files for editing. Here we look at the disadvantages of using Excel as software for budgeting and planning complexly.
Special planning and budgeting software
Using special planning and budgeting software for financials and operations may ease the complexity of adjusting calculation models, but not at all. Often, in business performance management systems such as IBM Planning and Analytics (previously IBM Cognos TM1), SAP BPC, Oracle Hyperion, Anaplan, Jedox, Workday, Tagetick, only the developer has access to calculation models and structures of business logic. Ordinary users who directly work with the system do not have access to it. Therefore, any change in such cases provokes the participation of at least three employees: the change initiator, the business analyst and the developer. That leads to extra costs for business.
Spreadym solves this problem by centralized management and storage of calculation models, formulas analysis model formats on the cloud server. This allows an ordinary employee with the appropriate access to update all models at once in one place and for all participants. This approach reduces the possibility of errors and the risk of overestimation or underestimation within a company. To see how the business automation solution Spreadym, inc. works, visit the link.