Sage FAS for Sage ERP
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The document discusses the risks associated with using spreadsheets for fixed asset management, highlighting issues such as data integrity, errors, and security concerns. It provides real-world examples of financial miscalculations caused by spreadsheet inaccuracies and stresses the importance of using dedicated fixed asset solutions. Key takeaways emphasize that while spreadsheets may serve as a starting point, they are insufficient for comprehensive asset management due to their limitations.
Sage FAS for Sage ERP
- 1. Sage Fixed Assets Webcast To Join the Audio: 1-650-479-3207 Access Code: 668 759 939 Walt Goodfield Michael Petrarca July 16th 2015 Focused. On you.
- 2. 2 MichaelPetrarca BusinessDevelopment- FixedAssets Sage MichaelhelpsSagePartnersandCustomersmakeliveseasierby automatingassetmanagement,depreciation,andregulatoryreporting. About Our Team RachelRoselli CustomerAccountManager–West RKLeSolutions Rachelisyourdedicatedpoint-of-contactatRKLeSolutionsforyourSageand complimentarysoftwarelicenses. GiaLane CustomerAccountManager–East RKLeSolutions Giaisyourdedicatedpoint-of-contactatRKLeSolutionsforyourSageand complimentarysoftwarelicenses.
- 3. Depreciation: Are spreadsheets putting your company at risk? 3 Depreciation: Are spreadsheets putting your company at risk? TBD– Sage Fixed Assets Solutions Engineer Partner – Presenter contact July 24, 2015
- 4. Depreciation: Eliminating the risks of spreadsheets 4 Why shouldn’t I be using spreadsheets to manage my fixed assets? What are the risks? What alternatives are available to me? Depreciation: Are spreadsheets putting your company at risk?
- 5. Depreciation: Eliminating the risks of spreadsheets 5 Agenda: • Spreadsheet dangers • Benefits of a dedicated fixed asset solution • Managing the entire Fixed Asset Process Depreciation: Are spreadsheets putting your company at risk?
- 6. 6 What do you mean spreadsheet dangers? Depreciation: Are spreadsheets putting your company at risk?
- 7. 7 No Predevelopment Design Spreadsheet dangers No Documentation Cell References Manual Formulas Manual Sorting Version Control No Audit Trail Manual Data Entry Security Concerns Fraud Concerns Inconsistent Reporting Worksheet Updates Sarbanes-Oxley Depreciation: Are spreadsheets putting your company at risk?
- 8. 24 July 2015 8Depreciation: Are spreadsheets putting your company at risk?
- 9. Data control 24 July 2015 9 • Spreadsheet knowledge tied to personnel • Introduces the challenge of “version control” • Minimal security and access control options • Spreadsheets do not scale well with growing businesses • Have to incorporate formulas for changing tax law by hand Data control with spreadsheets is a headache. Here’s why: Depreciation: Are spreadsheets putting your company at risk?
- 10. Data Integrity •Bad reports •Inaccurate asset values •Inaccurate asset counts •Bad budget info •Bad depreciation calculations 10 Dirty data impacts multiple parts of the business Depreciation: Are spreadsheets putting your company at risk?
- 11. Real world examples: Eastman Kodak Company “Eastman Kodak Company restated financial results for the first and second quarters by $2 million and $13 million, respectively, due to an erroneous spreadsheet that calculated severance and special pension-related termination benefits.” 11http://www.pcworld.com/article/127189/article.htmlDepreciation: Are spreadsheets putting your company at risk?
- 12. Real world examples: RedEnvelope, Inc. “Shares of RedEnvelope Inc. tumbled more than 25 percent . . . after the online retailer of specialty gifts drastically reduced its fourth-quarter outlook” Stanford Group analyst Rebecca Jones Kujawa said in an interview. “ . . . they were underestimating the cost of goods sold . . .” RedEnvelope spokeswoman Jordan Goldstein said the budgeting error was simply due to a number misrecorded in one cell of a spreadsheet that then threw off the cost forecast. 12http://www.eusprig.org/stories.htmDepreciation: Are spreadsheets putting your company at risk?
- 13. Spreadsheets kill data integrity The facts: • “64% of financial spreadsheets audited contained errors. Of those spreadsheets with errors, they found ten had an error exceeding $100,000, six over $10 million, and one in excess of $100 million.”1 • “AMR has repeatedly found that 65 percent of fixed asset data is incomplete, inaccurate, or altogether missing, while 10 percent to 30 percent of fixed assets are no longer owned.”2 • “30 to 90% of all spreadsheets tested suffer from at least one major user error. In addition, none of the tests included spreadsheets with more than 200 line items, where the probability of error approaches 100 percent.”3 131. http://panko.shidler.hawaii.edu/SSR/Mypapers/whatknow.htm 2.Data Validation the Best Practice for Data Quality in Fixed Asset Management,” www.amrnow.com 3. 2007 study Tucks School of Business at Dartmouth College
- 14. 14 How can a fixed asset solution eliminate the risks of spreadsheets? Depreciation: Are spreadsheets putting your company at risk?
- 15. 15 What about the rest of the Fixed Asset Process? Depreciation: Are spreadsheets putting your company at risk?
- 16. Key Takeaways • Spreadsheets are a good starting point… but they are only that, a starting point. • Spreadsheets have limited security control options • Creating reports by hand from spreadsheets is time consuming and prone to error. 16Depreciation: Are spreadsheets putting your company at risk?
- 17. Contact RKL eSolutions for pricing, compatibility and consulting review for your assets and depreciation needs. East Coast West Coast GLane@rklesolutions.com RRoselli@rklesolutions.com 717.735.1492 717.735.9131
Editor's Notes
- #4: Slide 1: Hello, my name is (XXX) and I am a Sales Engineer with the Fixed Assets team here at Sage Software. Thank you for taking the time to join us for today’s webinar on eliminating the cost of spreadsheets.
- #5: Slide 2: We hope to answer a number of questions in today’s presentation.
- #6: Slide 3: First we will spend some time discussing the dangers of using spreadsheets to manage your fixed assets using some real world examples and figures. Then we will talk through the benefits of using a dedicated fixed asset software solution and finish by discussing the entire fixed asset process.
- #7: Slide 4: So First, why is this topic important? You might be thinking to yourself “I’m using spreadsheets to manage my assets now, what should I be worried about?”
- #8: Slide 5: (14 clicks! Final click is picture! Slowly click through all 13 while reading script, matching final click to final sentence) Quite a lot actually. Spreadsheets are a common starting point for most businesses to begin managing their fixed assets. However, as time goes on your growing businesses needs expand, you add additional employees and the federal tax code continues to become more complex and all of the dangers of using excel become more and more apparent until it becomes a stressful source of major business challenges.
- #10: Slide 7: Keeping spreadsheets up to date can start as a simple process but can quickly grow into a time consuming burden as they do not scale well with growing businesses. As your business expands, spreadsheets become more complex, using various formulas and cell dependencies so you can work with your data. Unfortunately, this leads to one or two individuals being the spreadsheet knowledge holder. If these people leave the business and take that knowledge with them, it can have major impacts on productivity. Additionally, spreadsheets allow the problem of version control to surface. If there are multiple version of a spreadsheet being worked on, consolidation and deduplication of the data on each version can take more time than entering the data in the first place. Finally, spreadsheets offer minimal security and access control options, opening the door to dirty data due to lack of control.
- #11: So why does this matter? For a number of reasons. First, Bad data. Bad data means bad reports, and bad reports mean bad strategic business decisions. Next, if you do not have a accurate asset counts and value, you may be over paying on taxes and property insurance. Further, if you have bad asset counts, you may find that you don’t have a business critical asset on hand when it is needed. If you don’t know the value and condition of your existing assets, your budgets may be inadequate as you don’t know what needs to be replace soon. Finally, as mentioned before, feeding bad data into your depreciation solution can lead to bad calculations and non-compliant tax entries.
- #12: Slide 9: So what do these challenges mean to your business? Well, let’s examine some real world examples of how the Dangers of spreadsheets have impacted other businesses, starting with Eastman Kodak. A miscalculation on Kodak’s spreadsheets forced them to have to restate their financial results due to a $13 million dollar error.
- #13: Slide 10: A similar situation occurred with RedEnvelope, Inc. An error in one single cell of a spreadsheet led to a 25% drop in share prices due to miscalculating their budgets and cost of goods sold.
- #14: Slide 12: Long story short, the lack of control and data integrity offered by spreadsheets is downright dangerous! A study by tucks school of business found that out of a selection of audited spreadsheets, 64% had errors, 7 of which exceeded $10million dollars. The Asset Management Resources group has been assisting their client’s asset accounting efforts since 1989. AMR’s research shows that 65 percent of fixed asset data is incomplete, inaccurate, or altogether missing, while 10 percent to 30 percent of fixed assets on the books are no longer owned. Finally, The Spreadsheet Research group found that 30 to 90 percent of all spreadsheets tested suffer from at least one major user error. In addition, none of the tests included spreadsheets with more than 200 line items, where the probability of error approaches 100 percent.
- #15: Slide 13: So how can you overcome the costs of spreadsheets? One way is to use solution specifically designed to manage fixed assets, so let’s take a closer look at how Sage Fixed Assets solution can make excel headaches a thing of the past. Demo Depreciation
- #16: Slide 18: So, as you have seen, a dedicated fixed asset software solution can make spreadsheet woes a thing of the past. But, there is more to asset management than just depreciation