Technology for Financial Planning

In this assessment, I will examine critically technology (SAP and EXCEL systems) that facilitates sturdy financial planning, budgeting, administration and reporting systems. Also, I will analyse financial monitoring, review, evaluation and auditing systems.

SAP

EXCEL

Financial Planning

SAP Cloud for Planning makes easier planning through simulations at various levels of details with today's interface, numerous professionals and anytime. Planning data is got into, edited and stored in a single place. It allows getting the look process in less time once it is not necessary to manage spreadsheets individually. Using cloud-based EPM system helps to keep the data basic safety, and spreadsheets are not distributed by email.

Financial planning is a common spreadsheet software. Many worksheets are created to gather just as much information as you possibly can to allow cross-sheet referencing. Any system has Individual entry error but this question has a huge effect on Excel spreadsheets and time-consuming is a drawback.

Budgeting

SAP Real Spending let the access to up to the minute budget and spending information. To manage to spend in real time, allow optimisation of budget utilisation

The information related to budgeting is not kept up to date in real time because the spreadsheets shouldn't be changed by any person preventing thus misinformation

Administration

SAP Personnel Administration aims to facilitate staff lifecycle management from employ the service of to retire, including exchanges and new placements within the company, leave of lack, and terminations

Excel usually is utilized as an auxiliary tool to manage human tool information

Reporting Systems

SAP Crystal Records can do information based on any virtual data source and delivery it in various platforms, in up 24 languages.

This function is not available in Excel Program

3. System Features

SAP

EXCEL

Financially Monitored

SAP has features to analyse plenty of data quickly; forecast and examines what-if situations, and to evaluate actual performance against goals

Excel does not have functions to analyse the vast amount of data quickly. Imagine if scenarios and examination of actual performance against goals are possible, yet, in a superficial way.

Reviewed

Intelligence tools enable employees to make faster and more informed decisions predicated on real-time data available 24/7. Dashboards, mobile applications and predictive analytics help users' performance

Moreover, also, dashboards and predictive analytics need to be produced by users

Evaluated

Using Financial Planning and Examination (FP&A) software from SAP, users can improve financial performance once it can help to raise the profits, align operations with business strategy and monitor and control costs

A better knowledge of data analysis must interpret the financial data. Also, users have to build up many reports predicated on worksheets to decision-making process

Audited

GRC (governance, risk and conformity) tool helps users take care of: venture and functional risk, access governance, regulatory and conformity, policy, global trade, fraudulence prevention and detection.

Excel doesn't have tools to audit any data

4. 1 SAP summary

SAP is an venture performance management (EPM) system that integrates and examines organisation's data from different options to boost its performance (Garther, n. d. ).

Cloud-based EPM system has many advantages, such as (Bright Point Consulting, 2016)

- data control: the permission to alter or change formulas can be set only for some users. This limited access reduces the probability of human errors and also it facilitates fixing errors by tracking changes and approvals;

- existing Excel spreadsheets can be utilized by EPM system, minimizing commitment once the company won't have to start out from scratch. It really is a cost-effective and fast solution;

- it is not necessary an enormous initial investment in certificate fees. Furthermore, unit installation, maintenance or update software will not be IT responsibility;

- EPM systems allow to get exact financial consolidation and close process quickly and in a security way (Web host Analytics, 2015);

- the reliability of the info increases when it is loaded immediately from EPM systems. "Spreadsheets, even after careful development, contain errors in 1% or more of all formulation skin cells. In large spreadsheets with thousands of formulas, you will see a large number of undetected errors. " (Panko, as cited in Host Analytics, 2015);

- all division has access to the same dataset (reliable and correct information) to do its reports;

- EPM systems are financially smart because they don't require human interference (to include formulas and customise spreadsheets, for example). They present a knowledge of finance, templates and built-in formulas.

SAP advice:

SAP is recommended when a platform (tactical, capital plans, operational and workforce in mere one system) is required.

4. 2 EXCEL Summary

Excel is a spreadsheet program that gets the capability to compute values using mathematical formulas. The data is established easily in skin cells (Computer Trust, 2016).

Excel is a simple system which requires a huge human disturbance to keep it working well without flaws. However, matching to MarketWatch (as cited in Bridge Point Consulting, 2016), 88% of spreadsheets have mistakes because Excel requires real human entry data, what does not happen with the new cloud-based financial tools, that happen to be programmed and can find invalid or lacking information more easily. Individuals make problems, they type over things accidentally or forget things. So it means that companies waste materials a lot of the time to enter into and fix the info. This manual process does not permit the transparency required by business environment nowadays (O'Rourke, 2015).

According to a recent review, Excel was chosen by 86% of the members as the tool to be utilized for planning and budgeting (Kasabian, 2014).

Although it is one of the cheapest systems, there a wide range of invisible costs once Excel is incredibly time-consuming. Staff spends time creating customised planning that will assist these to do planning and solution outcomes. To change this approach, it needs spending more time or even start over again. So, Excel looks the cheapest in the first point in time, nonetheless it becomes expensive as more complex financial applications are essential.

Besides that, Excel doesn't have reliable tools for a company doing its management properly. Some information such as financial and management reports aren't available possible for users once each section provides company's information separately and which consists of own template and method of developing its spreadsheets. As a result, accountants and auditors have to decipher this information later. All the data is not centralised and designed for everyone up to date at the same time. It is rather important all sectors in the business be linked each other to ensure that final results are relative to the business goals. Closing process is not fast in Excel. The overwhelmed majority of finance teams wait until all data have been refined to minimise the possibility to make changes and rework. This attitude becomes the process long and hard, which inefficient procedure is repeated once a month, quarterly and each year in the company. So, Excel will not help too much professionals and CEOs to start to see the "big picture". In modern organisations, they want data in real-time and reporting and analysis in near-real time to support their procedure for decision making.

Excel spreadsheets can be retrieved from computer systems and machines, even after removed, or can be utilized if laptops have been taken (O'Rourke, 2015).

When associated spreadsheets have to be distributed and edited by many people, the machine gets messy and presents many formula errors easily (Host Analytics, 2015).

Excel tips:

Nowadays, the Excel's use should be limited to domestic use since it is known as a great personal tool. In companies, Excel can be utilized as preliminary part of budget and planning solution once it is not hard to work with.

4. 3 System Recommended

After all concerns, SAP is more suited to submission to a company manager for most reasons. Reliable data, fast survey generation, designed system that allows all staff access information.

Nowadays, information on real time can be an important requirement and SAP helps a business director in cases like this. Besides that, studies can be made with focus on many aspects of the company. These reports allow the knowledge of the "big picture" and a better evaluation of company situation.

References

Bright Point Consulting. (2016). Five reasons to switch from EXCEL to a cloud centered EPM System. Retired from http://www. brightptc. com/5-reasons-to-switch-from-excel-to-a-cloud-based-epm-system/

Computer Anticipation. (2016). Spreadsheet. Retrieved from http://www. computerhope. com/jargon/s/spreadsh. htm

Garther. (n. d. ). IT Glossary. Retrieved on October 18, 2016 from http://www. gartner. com/it-glossary/epm-enterprise-performance-management/

Host Analytics. (2015). Five reasons to move off Excel for consolidation and close. Retrieved from http://www. brittenford. com/wp-content/uploads/2016/03/Five-Reasons-to-Move-off-Excel-for-Consolidation-and-Close. pdf

Kasabian, D. (2014) For better or worse, Excel continues to be the main tool for planning. Retrieved from http://www. tagetik. com/blog/authors/dave-kasabian/excel-planning#. WKk4gTt97IU

O'Rourke, J. (2015). Why giving Excel behind leads to improved EPM. Host Analytics Blog. Retrieved from http://blog. hostanalytics. com/why-leaving-excel-behind-leads-to-improved-enterprise-performance-management

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)