The discussion of an Excel versus a web-based database application approach to budgeting is not a new one, but it is one that takes some understanding of what your requirements are in your budgeting process. Over the years, we’ve gauged that more than 75% of public sector and non-profit organizations use Excel spreadsheets as the go-to solution for budgeting and forecasting.
What is the right tool for you? Let’s compare.
Excel | Database Application | |
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Information is local to spreadsheets | • Static version of the data • Versioning is difficult • Understanding what numbers are correct • Accumulation and consolidation of data is manual and difficult | • All data and versions are stored centrally • Data accumulation in real time and automatic aggregation |
Information is scattered | • Decentralized budget entry • Difficult to get up-to-date information • Multiple versions of spreadsheets scattered on desktops and file servers | • Centralized budget entry-all information in one location • Information is right at your finger tips • Single data repository provides a single version of the truth |
Manual data entry issues | • Linked spreadsheets that can break • Where does this number come from? Is it updated? • Maintenance of a multitude of spreadsheets is difficult and error prone | • Brings together financial and non-financial data from a variety of sources • Consistent presentation and aggregations • Unified database removes the need for spreadsheet links |
Communication and collaboration | • Inability to easily share information • Sharing of final reports is generally facilitated by email • Lengthy, inefficient update process when multiple participants are involved • Bringing data together from multiple files and data sources can be difficult | • Data is stored centrally with the option to email various reports and versions • Multiple users can contribute to the same report and data simultaneously • Step-by-step process flows to guide users |
A standard approach | • Unstructured workflow process of approvals • Loose and unstructured process requiring time to monitor • Unstructured data • Lacks multi-dimensional view • Reports with different formats and layout floating around | • Structured process for approvals • Real time progress monitoring and approvals • Budgets and reports can be locked down • Data aggregation is performed consistently and across multiple dimensions for better insight • Consistent look and feel can be applied easily to all reports • Ability for users to create their own reports via ad hoc reporting |
Version control | • A saved spreadsheet represents a version • Version comparisons and analysis involves manual manipulation | • Versioning is possible with a simple drop down selection • In report, drill down functionality to ease root cause analysis • Version comparisons are facilitated with out-of-the-box reports • Unlimited number of versions • Security manages user access to versions |
Variance reporting | • Typically a manual, time consuming process of exporting actual cost from the financial solution and then formatting and massaging the numbers to facilitate actual vs. budget comparisons • Most departments receive quarterly variance reports | • Through integration, actual costs can be imported at any interval Finance determines — nightly, monthly, quarterly • Departments are empowered to access their variance • without reliance on Finance department • Finance has more time to focus on reporting and analysis |
Post budget approval | • Finance department required to manually key in the approved budget into the financial solution for variance reporting • Post budget amendments usually take place in the financial solution | • Through integration the approved budget can automatically be pushed into the financial solution, reducing the chance of human error • Post budget amendments can be done in the database and then pushed to the financial solution, if needed |
Audit trail | • Changes to budget modifications(what, when, why) not tracked through the system • Limited to keeping copies of files | • All details can automatically be tracked • Changes in values, time stamp, user, etc. • Removes the need for multiple spreadsheet copies |
Data security | • Security is mostly left in the hands of each user • Typically all or nothing | • Role-based security can be aligned to teams or individuals for ease of maintenance • Consistent security model between budget and forecast versions, actuals and reports |
Change management | • People like to stay with something they already know and are comfortable using • The transfer of knowledge is limited when the people retire or move on | • Typically adopted by public sector and non-profit organizagions that see the need for better processes in order to increase productivity • Knowledge transfer is facilitated by training a core group of staff who are then able to train others |
User friendly | • Most budget contributors are familiar with Excel • Minimum to no training required • No IT resources required to maintain | • Initial training is required • Extra IT resources may be required to maintain the application |
Want to learn more about how Questica can help your organization ditch Excel spreadsheets for faster and more accurate budgeting? Learn more about Questica Budget Suite or request a demo today!