Research into asset spreadsheets
highlights user concerns.
Research conducted into spreadsheet asset registers
has revealed serious problems and user concerns over
the way companies manage their fixed assets.
The research, sponsored by FMIS, developers of the
Asset Intelligence system, reveals that only 11% of
organisations using spreadsheets to manage their asset
registers have complete confidence in their asset data.
A broad range of companies, both in terms of size and
sector, participated in the research with often surprising
results. The key findings were as follows:
- 75% found the spreadsheets complex to set up (7%
described set up as a ‘nightmare’).
- 82% reported incorrect depreciation calculations.
48% of errors were only discovered after year end,
a third of these by external auditors.
- Less than 40% of users believed their asset data
was very accurate, with only 11% having complete confidence.
- Although only 20% of respondents had more than 5000
assets, nearly 60% of users spend over 3 hours/month
maintaining their spreadsheet.
- 88% of respondents believed that dumping their spreadsheets
in favour of a dedicated fixed asset system would
improve their asset accounting
- Most popular reasons cited for switching include
improved accuracy of data (75%), audit trails and
asset history (79%), reduction in user error (75%).
Other reasons cited include improved integration,
compliance and a reduction in time spent maintaining
the register
Commenting on the results, Victoria Stanley, of Fixed
Asset Management specialists FMIS, said “The research
shows that while finance departments are still clinging
to old-fashioned methods to manage assets, there is
a widespread acceptance of the benefits to be gained
from having up-to-date, reliable asset data which is
easy to search and report on, with full history and
audit trails against every asset.
“With this increased awareness and the fact that
auditors are becoming increasingly demanding in the
area, we are forecasting strong growth of fixed asset
management application software over the next 12 months.”
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