In recent months, we’ve seen a number of events which have provided businesses with more uncertainty than they would like.
Brexit is a good example. The pound hit a 31-year low against the dollar and some businesses even began to look away from London for a new base. Oh, and the UK’s trading arrangements with Europe, and the rest of the world, were also thrown into doubt, with the UK government now gearing up for potentially lengthy and complex negotiations. On top of that, throw in a host of unpredictable elections into the mix, in both the US and across continental Europe – and yes, even more elections in the UK too – for good measure…
It’s pretty easy to see why some organizations are feeling, well, less than certain when making decisions at the moment.
Despite this, businesses need to be able, and prepared, to adapt to the mutable economic and political climate. With so many uncertainties, now is a time when organizations should be able look to their financials, data and reports with complete confidence.
But, have you ever thought what were to happen if the models carrying your business-critical information were wrong? It’s more common than you’d think, with an estimated of 95% of spreadsheets containing some sort of error. Naturally most businesses like to think they’re an exception to the rule, but a simple Google search of “spreadsheet errors” tells another story.
The ability for businesses to be flexible and react to unexpected situations is crucial, and this includes the need to be able to rely on accurate, flexible and scalable financial models. The process of being able to model ever-changing scenarios – like Brexit and other political events – shows the need to produce flexible financial models. Despite this, many businesses are still reliant on 35-year-old technologies providing little flexibility.
The FAST standard for modeling is well known, and with the ‘F’ standing for flexibility, it’s clear many businesses are falling short of the standard. The ability to be flexible in your model build, whilst still being able to quickly and accurately add new scenarios, dimensions or outcomes means you can react to new market uncertainties, giving you reassurance in your forecasting and budgeting process – even in such uncertain times. All your financial professionals need? The right tool for the job.
Eliminate the uncertainty of having errors in your spreadsheets, eliminate the worry that you won’t be able to accurately forecast that new scenario and eliminate the risk of not being able to react fast enough.
By Holly Perry