Accountagility, a finance solutions firm, has warned that major problems could arise for firms who have an over-reliance on spreadsheets, especially those struggling to get a grip with Solvency II. Barely three months after the onset of Solvency II, the points of weakness are starting to show amongst those firms that are now just filing their introductory solvency returns. 73% of CFOs have raised concerns regarding their reliance on spreadsheets, this is as seen from research from Accountagility.
The research from Accountagility also indicated that a further 80% of CFOs communicated culpability with their processes of planning when using spreadsheets over the previous year. This also makes it very clear that these hefty procedures are not performing as productively as they should be.
Certain challenges occur for firms that are battling with Solvency II I reference to the abundant data collection, manipulation, the analysis and also the output needed. In the event tools like Excel or any other spreadsheet function is utilised for such operations, the level of productivity will be comprised and there will be an addition of an element of risk.
The Founder and CEO of Accountagility, Robert Gothan take-home points :
There are two principal impacts for relying on spreadsheets for Solvency II- process and errors inefficiency. Firms using spreadsheets don’t spend enough time reviewing the data they created, which leaves errors that can potentially go undiscovered for several months in future. Because the framework of Solvency II does not accommodate allowances for lack of efficiency or mechanical error, the review stage is very critical, especially for firms that need to file solvency returns in the EU.
The research from Accountagility indicates that in five CFOs, four adduce problems with the spreadsheets, which is a matter of grave concern. Businesses should take precaution when an over-reliance on spreadsheets while filing their solvency returns. At the same time, they should consider utilising automated solutions to smooth such processes in future.