How accurate are your spreadsheets?

Common estimates are that 90% of spreadsheets contain errors

Humans are the biggest cause of errors. Because entering and manipulating data in a spreadsheet is a manual process, spreadsheets are at high risk of human error. Even the best operator will naturally make mistakes. And yet I have never worked in a company that gives spreadsheet training routinely. It seems to be accepted that people know how to use them.

It doesn’t matter what your business does, somebody has a spreadsheet somewhere. It may be an official company template, or something hacked together by Fred.

Research has shown that a significant proportion of spreadsheets contain errors, an online search shows estimates of around 90%. This should make you sit up and take notice.

Here are some examples of everyday errors that I find:

  • Spreadsheets that somebody made years ago and that have since been tweaked, updated, modified, updated again to the point where we have no idea what’s going on.
  • Multiple, conflicting versions of the same data stored on different employees’ devices.
  • Copy and paste errors – unforeseen errors can occur when data and formulas are copied from one spreadsheet to another.
  • Mistyping when entering data.
  • Entering a formula incorrectly.
  • Making a reference to the wrong cell.
  • Entering the wrong data type, e.g. using a date when a string is expected.

Basically, Garbage in = Garbage out

I can reduce or eliminate these errors by methods including the following:

Automating operations
Allowing data to only be entered in certain cells or areas of the worksheet.
Creating a user form to enter data
Keeping cells hidden or locked so they cannot be changed, accidentally or otherwise.
Allowing only certain types of data e.g. numbers, dates or text.

In fact, there is the “European Spreadsheet Risk Interest Group https://www.eusprig.org/ that specifically addresses the business risks of spreadsheet errors.

Here are links to some interesting and eye-opening reading:

https://eusprig.org/research-info/horror-stories/
https://www.researchgate.net/publication/1912352_Spreadsheet_Errors_What_We_Know_What_We_Think_We_Can_Do
https://www.marketwatch.com/story/88-of-spreadsheets-have-errors-2013-04-17
https://theconversation.com/spreadsheet-errors-can-have-disastrous-consequences-yet-we-keep-making-the-same-mistakes-219356

Contact me now and let me show you how I can eliminate errors in your spreadsheets.

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