From Spreadsheet Chaos to Financial Control with BPA Software

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• BPA Software, errors, Excel, spreadsheet errors

Have you noticed issues with spreadsheets in your business? If so, you’re not alone. Many companies rely on spreadsheets, but spreadsheets aren’t always the best tool for the job and they’re notoriously full of errors.

Recently, a literature review published in Frontiers of Computer Science examined 35 years’ worth of studies on spreadsheet errors and found “that about 94% of the spreadsheets in use contained faults” (Poon et al., 2024, p. 1). The high level of errors is a big problem, especially in large companies that rely heavily on error-riddled spreadsheets for critical financial documents.

So how can you go from spreadsheet chaos to financial control? The solution is Business Process Automation (BPA) software. Spreadsheets have their uses, but they’re often stretched beyond their limits and used for things they were never designed to handle. By replacing spreadsheets in accounts payable, capital project management, procurement, T&E reimbursement, and other financial processes with BPA software, you can take control of company finances.

Why Spreadsheets Have So Many Issues

Many spreadsheet errors originate when someone creates a spreadsheet. Once, “spreadsheet development” was “done by well-trained IT professionals,” but now it’s more common for “non-technical” users to create spreadsheets that are “poorly coded and inadequately tested” (Poon et al., 2024, p.1). Excel is a more complex program than many people realize, and it’s easy to make a mistake (I’ve done it myself) when creating spreadsheets. These mistakes can have long-reaching consequences, introducing errors from the very start of a spreadsheet.

Other errors end up in spreadsheets later on. Many of these are a result of everyday human error. A mistake as simple as putting the decimal in the wrong place can cause thousands of dollars worth of errors and provide inaccurate data related to company finances. Tracking down and correcting these errors manually is time-consuming, and it’s almost impossible to catch them all. Other errors arise when people copy and share spreadsheets, sometimes resulting in conflicting versions of the same file.

BPA Features That Fix Spreadsheet Issues

BPA software works differently than spreadsheets, and it prevents and solves most of the issues that result in spreadsheet errors. The programs are designed for easy use, making it simple for employees to enter information and work with data. There’s much less of a learning curve than with Excel, and it’s harder for someone to make a mistake that would impact the accuracy of the financial processes.

Another big way that BPA software cuts down on errors is by automating data entry. The software program has a much higher accuracy rate than manual data entry. Even the most conscientious employee can make a mistake, but BPA software includes highly accurate data-gathering technology as well as anomaly detection to double-check for errors.

A BPA solution also implements the separation of inputs, calculations, and results. Version control and automatic change tracking create accountability, making it easy to check on the history of a document or a financial process and see who implemented changes. If you use a Software-as-a-Service (SaaS) platform for implementing BPA, everyone on the finance team will use a centralized, web-based platform that updates in real-time. This eliminates the problem of conflicting or outdated files on different computers.

Prevent Costly Errors

It is not an exaggeration to say that spreadsheet errors can cost companies millions of dollars. It’s happened already. Here are a few examples:

• A copy-and-paste error in an Excel spreadsheet cost TransAlta $24 million after it purchased contracts at a higher price than necessary (source: The Register).
  A spreadsheet error made after switching to a new accounting standard cost FannieMae $1.3 billion (source: CIO.com).
  A typo led to the University of Toledo overestimating revenue. When the formula in the spreadsheet was corrected, the University lost $2.4 million in projected revenue (source: The Toledo Blade).

These sorts of issues can be prevented by BPA software. For example, dashboard anomaly detection built into the software can detect issues such as a missing decimal that places an expense outside of the expected range (e.g. $5,000.00 vs $500,000). The bigger the ticket, the more impactful the errors are and the more money your company will save by preventing errors.

BPA software is also specifically designed for the business process that you’ll be using it for. Excel wasn’t designed to be used as the basis for accounts payable, for example, and spreadsheets aren’t the best tool for the job. But AP automation software is specifically designed for managing all aspects of accounts payable from receiving invoices to processing payments. Your employees won’t need to jerry-rig the software to make it work. Automating routine, repetitive tasks dramatically reduces errors and speeds up processing, freeing up employees to focus on tasks like reconciling exceptions invoices and preventing fraud.

Take Control With NextProcess

NextProcess offers the only suite of SaaS BPA software that provides an end-to-end financial solution. By automating with software modules from a single provider, you’ll eliminate the danger of software conflicts and create a more streamlined financial solution. NextProcess also integrates seamlessly with existing ERPs to provide total control over finances.

If you’re ready to take control of your finances with BPA software, contact NextProcess today. We’ll be happy to answer any questions you have and schedule a free demo. You’ll be able to see first-hand how the software would work in your company at no cost to you. If you decide to automate with us, NextProcess has one of the highest successful implementation rates in the industry. We’ll work with your company every step of the way to customize the software to your unique needs and help your company take control of finances.