Are your spreadsheets stuck in 2005?

AI, live bank feeds, synced client lists, pre-written templates… ever heard of them? If your spreadsheets are still stuck in the dialup era when fibre broadband is the norm, then it’s time to catch up.

The world moved on from clunky spreadsheets and manual data entry years ago. So, if you’re still battling slow-loading Excel files and manually updating client lists, then you’re missing out on the incredible tech advancements that available today.

Here are the three biggest concerns around using outdated spreadsheets, and three simple solutions that can instantly modernise your firm.

3 biggest concerns with spreadsheets

1. Security

One of the biggest areas of concerns when it comes to spreadsheets is security. In a study we carried out, we found that 53% of participants feel that cyber security is a growing concern.

When it comes to spreadsheets, almost 90% of all spreadsheets have significant errors in them, with even the most carefully created spreadsheets containing errors in at least 1% percent of all formula cells. As you’d expect, the majority of errors reported were caused by human error, which means they could’ve been easily avoided.

In fact, spreadsheet mistakes are so notorious (and often costly) that there’s a dedicated organisation called the European Spreadsheet Risks Interest Group, who run an annual conference to help protect professionals from significant business risks. And what’s even more interesting, is that this conference is sponsored by the ICAEW!

As an accountant and bookkeeper, you’re often under immense pressure to meet deadlines, which could lead to rushed work. Unfortunately, even small errors can have far-reaching consequences – like a client paying more tax than they need to or a late submission fine.

2. Version control

Sometimes, when there are multiple people working on the same file and it doesn’t get updated from the one source, data becomes inconsistent. Without proper version control, confusion, inconsistencies, and potential security breaches can be scattered across your worksheets you even being aware of it.

For example, let’s say that a manager hands out a monthly Excel to-do list to their team. If each team member is individually updating their own version of that file, the manager will have to go into every single team member’s individual version and manually keep tabs each one to see what’s getting done by who at all times.

3. Missing data and the importance of backups

Spreadsheets are susceptible to accidental deletion, corruption, and hardware failures. If you plug out a USB without safely removing it or have to restore your laptop to a previous date, files can go missing and never be seen again. Without having proper backup measures in place, or by not using a system that’s in the cloud, recovering lost data can be challenging, if not impossible, without adequate resources.

3 simple solutions to modernise your firm

1. Audit trails

Firms (generally speaking) only track staff activity, and not their client activity, which is equally, if not more, important. For example, what if a client shares a form with you, signs a document or even gives you a phone call? Who’s keeping track of that? Are you relying on sticky notes or an email thread in the abyss of your inbox? Neither of these are reliable options, which is why you need to move onto something a bit more niche and tailored for the industry.

We recommend using a cloud-based audit trail that can track your clients’ activity while you work. That way, if a client signs their terms of engagement, shares a form with you, or even opens an email, it’s all tracked with time stamps for you, giving you peace of mind if any communication should turn sour.

2. Real-time updates and multi-user access

Another issue with spreadsheets is that they’re not updated in real time, which can really limit the visibility of work that’s actually getting done for managers, and the firm as a whole for directors. When you’ve got a system in place that has everyone’s work in one, central location, and can see exactly who’s working on what, is a game changer.

That’s why we personally recommend implementing a cloud task management system that offers complete visibility over everyone’s to-do list. That way, employees, managers and directors know what needs to get done by when, exactly who’s responsible for it, view the firm’s priorities, and most importantly, can be updated in real time while you all work.

Another benefit to these task lists is that they’re all updated in real time, so multiple users can make changes to their to-do lists instantly, while they work. By having everything in one place, you and your team can complete projects faster, cut back on errors and share the flow of work effortlessly between one another.

3. Client portals and email templates

While the likes of Excel and Google Sheets provide basic sharing features, they lack the advanced communication tools needed to engage with clients effectively. That’s why tailored solutions offer the likes of client portals and email templates that streamline how you communicate with clients, while simultaneously streamlining your own processes.

How? Well, client portals let you share documents securely and efficiently with clients. If it comes with branding options that let you customise the portal to look like part of your website, all the better.

Email templates mean that you don’t have to write every email from scratch. Whether you want to send a tax payment reminder, request Self Assessment records or remind a client to sign an engagement letter, it can be done in seconds.

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This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.