The Financial Damage Caused by Human Error and How to Prevent It

The Financial Damage Caused by Human Error and How to Prevent It

4 MIN. READ

No matter the size of your business, even the smallest accounting mistakes can be detrimental to your operations. In some cases, they can cost you a fortune in damage repair. At other times, they can place a massive hit on your reputation. Turning to spreadsheet management software can help you steer clear of these situations.

Designed to enhance visibility into spreadsheet usage, reduce errors and streamline operations, spreadsheet management software can mitigate regular risks and boost your productivity.

Here is why it matters.

Human error is the top contributor to financial errors

Armed with the results of a BlackLine study, a recent CFO Daily News article revealed the number one cause of financial mistakes is human error, representing 41% of all accounting mistakes.

That is correct. For once, that astounding figure is not a human error.

In many scenarios, an accounting error can result in a reporting mistake while in other situations it can cause discrepancies in crucial transactions. When it is neither of those, it can still result in inadvertent falsification of data. Even so, the consequences of such simple faux pas are not limited to these results. They can spread far and wide in their damage potential.

To steer clear of accounting errors, remember to identify their root cause as well as contributing factors.

Most businesses are unable to identify financial errors

The CFO Daily News article covered more than a few financial and business aspects. Apart from outlining the top cause for accounting errors, the BlackLine study also explains that 55% of businesses are unable to identify financial mistakes before executing tasks based on the generated data.

If you think that is worrisome, it will be even more disturbing to learn that 70% of financial experts are not sure of the authenticity of their crucial data. They know that their data is prone to massive mistakes. However, they have no choice but to make crucial decisions based on the information.

Why take the risk? Since most companies use spreadsheets for accounting and finance, it is challenging to gather the time and resources to check each detail twice or thrice before passing it as reliable information. Taking chances on inaccurate data may seem effective in the short run, but it can bring consequential risk in the long haul.

This also means that a seemingly unimportant typo, a deleted cell, or an added stroke of a key all carry the potential risk of damaging a company’s revenue and reputation.

Fortunately, there is a way to avoid accounting mistakes by using purpose-built solutions, like spreadsheet management software.

How spreadsheet management software helps you mitigate spreadsheet risk

Spreadsheet management software can improve the quality of your data. Through easy installation and an intuitive user interface, Incisive Software’s spreadsheet management software solutions ensure that you can trust your data to make critical business decisions. Instead of trusting fate with potentially inaccurate data, you can run frequent and real-time checks with the click of a button.

Built with the purpose of helping to identify and resolve spreadsheet errors and risk, such software does not require months of training, deployment or technical knowledge. With straightforward usability, robust agility and essential support, our spreadsheet management software provides the additional vigilance you need without requiring you to spend time identifying errors.

At Incisive Software, we specialize in building solutions to help you make business decisions based on data you can trust, giving you confidence in the accuracy and consistency of your spreadsheet data.

Spreadsheet management software opens the door to more accurate decision-making, reduced overhead and greater risk prevention. For more information about why companies that prioritize spreadsheet risk are better positioned to protect their client base, preserve top-line revenues and fortify their reputation, download our Forrester Opportunity Snapshot study. You will learn more about the importance of data accuracy in spreadsheet management and how it can improve your organization’s data culture.


About Diane Robinette

Diane RobinetteDiane Robinette is President and CEO at Incisive Software, a company helping risk executives reduce exposure in critical business and financial processes. Prior to Incisive, Diane served in executive and senior level positions at companies including BroadVision, Contivo (acquired by Liaison Technologies), Covigna (acquired by ProQuest/Snap-on), Perfect Commerce and Proximex (acquired by Tyco). She also held management positions at KPMG and EY. Diane believes that by taking a modern and automated approach, risk teams can move towards a risk resilient posture that allows them to anticipate and reduce exposure, no matter what is thrown their way.