Excel has been the go-to for finance professionals for as long as anyone can remember. It’s flexible, familiar, and seems to be able to handle just about anything you throw at it if you know the right formulas.
But here’s the catch: while spreadsheets no doubt have their place, they no longer measure up to the demands of modern financial reporting. As the role of the CFO continues to expand, so too does the need for sophisticated, yet easy-to-grasp insights when it comes to reporting.
There’s also a time element to consider; finance teams pushing for real strategic impact simply can’t afford to spend hours bogged down in manual inputs and hunting for error-prone workarounds.
It’s time to get out of the spreadsheet trap and level up to something smarter, faster, and more future-proof. Something to empower your team to reach their full potential.
The problem with business-as-usual
1. Excel's hold on finance
Excel has been a lynch pin of finance teams for decades. In fact, research shows that over 70% of companies still lean on spreadsheets quite heavily when it comes to budgeting, forecasting, and consolidation. Why? Its accessibility and user familiarity have helped it thrive across finance departments all over the world. But the software is not without its issues. As organisations scale, so do their data volumes, reporting needs, and compliance requirements; things Excel just isn’t designed to manage at the enterprise level.
2. The hidden costs of spreadsheet dependency
Every extra minute spent updating formulas, cross-checking figures, or manually consolidating data is time your team could spend on something more impactful. Productivity takes a hit. Errors tiptoe their way in. You don’t want your highly skilled finance professionals to be stuck doing tedious, repetitive work; your resources should be focused on mission-critical tasks and strategic initiatives.
And the cost attached to spreadsheet-related errors is just staggering. Businesses have suffered multimillion-pound losses as a result of simple copy-paste mistakes, or overlooked formula issues. Ouch.
3. Pain points you know all too well
If your team is wrestling with multiple spreadsheet versions, struggling with version control, and constantly having to root out inconsistent data, you’re not alone. Excel-based reporting is rife with a number of annoying issues, such as:
- Disjointed collaboration
- Difficult change tracking and poor audit trails
- Slow, cumbersome processes for handling large or complex datasets
The bigger picture: Risk and vulnerability
Snowballing errors
Even a tiny formula error can have huge knock-on effects, from distorted forecasts leading to shaky decision-making, to actual compliance failures.
And we’ve seen in the headlines how spreadsheet errors have led to stock misvaluations, reporting inaccuracies, and major regulatory fines. For example, in 2024, Thyssenkrupp Materials Ltd were hit with an unexpected £8 million tax bill after submitting incompatible "bills of discharge" to HMRC.
The source of the issue? Excel spreadsheets. An error in manually updating a spreadsheet led to the submission of incorrect data, resulting in significant financial repercussions.
Security and compliance concerns
Shared spreadsheets aren’t just inefficient—they’re not secure. Without the right access controls, audit trails, or encryption, sensitive financial data is very much at risk. With cyberthreats coming thick and fast, and AI-powered attackers looking for that kind of vulnerability, companies need their data locked down. And it’s not just about keeping your data safe; there’s GDPR, SOX, and other compliance frameworks to consider, too.
Risk management issues
Need to stress test your financial models? Plan for multiple scenarios? Excel just doesn’t cut it. It’s not built for systematic risk analysis, and attempting to force it into that role creates unreliable outputs and painful bottlenecks.
Better begins now: What modern reporting looks like
Modern finance teams are making the move to cloud-based financial consolidation tools and cloud-native financial planning and analysis (FP&A) software to overcome spreadsheet limitations. These tools don’t just replace Excel—they reimagine how finance works:
- Real-time data syncing
- Automated consolidation
- Rich visual dashboards
- Seamless collaboration across teams
This isn’t a ‘nice-to-have’ anymore, but a strategic upgrade that you need if you want to keep pace with the competition.
Features that pack a punch
Today’s advanced reporting tools offer:
- Automated data aggregation from multiple sources
- Real-time cloud reporting for finance teams, so decisions are based on the latest numbers
- Predictive forecasting and scenario modelling
- Interactive dashboards that make insights easy to share
With centralised data management, data governance frameworks, and built-in quality controls, these platforms provide the clarity and control that spreadsheets simply can’t.
Integrated finance ecosystems
The best solutions don’t exist in isolation. They integrate with your ERP, accounting software, payroll systems, and BI tools—creating an ecosystem where data flows freely, workflows are automated, and reporting is no longer a reactive scramble.
4 business benefits of smarter accounting software
1. Win your time back
Automating manual processes and ditching the repetitive spreadsheet tasks makes for faster period closes, less stress at month-end, and more time for high-impact work. It’s a no-brainer.
2. Faster, better decisions
With real-time insights, improved accuracy, and more granular analytics, finance becomes your strategic partner. You’re empowered to drive smarter business decisions, more accurate forecasts, and responsive planning.
3. Smoother collaboration
Cloud platforms allow multiple team members to collaborate in real-time. No more version conflicts. No more email chains with conflicting data. Just clean, up-to-date, accessible information—shared across finance, operations, and leadership.
4. Built to grow with you
Need to handle growing data volumes? Pivot to a changing business model? Modern platforms are designed to adapt. Whether you’re moving into new markets or restructuring, they can flex with you without breaking a sweat.
How to go beyond Excel: Step-by-step guide
Step 1: Assess your current state
Start by mapping your spreadsheet usage. Identify critical reporting processes and areas most prone to error or inefficiency. That’s where the business case builds itself.
Step 2: Find the right fit
Measure twice and cut once, as the saying goes, so do your due diligence before making the move. Remember, not all tools are created equal. Look for:
- Cloud-native architecture
- Real-time capabilities
- Integration readiness
- Strong support and training
And check out the total cost of ownership, not just license fees. Think about time saved, errors avoided, and agility gained.
Step 3: Transition strategically
Roll out your new platform in phases, starting with pilot reports. Run your systems in parallel, and upskill your team so they’re empowered to use that software and make the most of it. Oh, and embed change management best practices to ensure buy-in and adoption.
Step 4: Measure the impact
Set clear KPIs to measure success; be sure to include things like time savings, error reduction, report turnaround speed, and decision-making accuracy. Then, let the results do the talking.
The bottom line
Like a favourite pair of walking boots, Excel has served us well. But it’s no longer enough. For finance leaders looking to lead, not lag, now is the time to make the move. With cloud-based financial consolidation tools and real-time cloud reporting, you don’t just escape the spreadsheet trap, but unlock a whole new level of performance. Start your transformation today. We’re here to help you move from manual to modern seamlessly, securely, and strategically.
Find out more about how better begins now with AccountsIQ’s cloud solutions.
Kelly Dent is a writer and editor with over 10 years’ experience across a range of industries, from accounting and AI to cloud technology, entrepreneurship, and beyond.
