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The Growing Cost of Excel Errors

THE GROWING COST OF EXCEL ERRORS As a near ubiquitous business tool , Excel is used by companies of all sizes to store and analyse data , and often these analyses are the basis of crucial business decisions . As you might expect then , mistakes in Excel can lead to erroneous assumptions and poor decision - making , often costing significant sums of money . But just how big a problem are spreadsheet errors , and how can you avoid making them in your own projects ? 80 % of spreadsheets have errors in them 33 % of large businesses report spreadsheet problems affecting decisions BARCLAYS SOURCES : HOW BIG IS THE PROBLEM ? Fidelity , 1995 Fidelity's Magellen fund estimated they would make $ 4.32 / share distribution at the end of the year . However , it turned out that this estimation was based on a spreadsheet in which an accountant omitted a minus sign and the dividend estimate was off by $ 2.6 billion = X Double - check formulas and proof - read all spreadsheets 50 % of spreadsheets used by large companies have material defects Barclays , 2008 During their purchase of Lehman Brothers assets in 2008 , a cell mistake meant that Barclays bought 179 more contracts than they intended to . The cells were hidden , but when converted into a PDF the cells were made visible again , leading to the expensive purchasing mistake 71 % of large British firms use spreadsheets to make key financial decisions 4 TIMES AN EXCEL MISTAKE COST MILLIONS spreadsheets - could - lead - to - Britains - next - corporate - disaster.html He B HOW TO AVOID MAKING YOUR OWN SPREADSHEET ERRORS 926888 1 in 3 financial decision - makers using spreadsheets in large UK firms are given no formal training in the software Use comprehensive business - wide policies for spreadsheet development spreadsheets are used in the preparation of British accounts worth £ 1.9 trillion ( which might help to explain the high rate of errors ! ) Strib TransAlta , 2003 In 2003 , TransAlta made a cut and - paste error in an Excel spreadsheet that resulted in the company buying more power transmission hedging contracts at higher prices than it should have . The mistake is reported to have cost them an estimated $ 24 million MI5 , 2010 In 2010 , the British Secret Service made more than 1,000 bugging errors and tapped the wrong phones due to a formatting error in a spreadsheet . The error caused them to apply for data on the identity of numbers ending in 000 , instead of the real last three digits PRODUCED BY Invest in spreadsheet training for financial decision - makers STL

The Growing Cost of Excel Errors

shared by Designbysoap on Jul 01
Although spreadsheets date to 1960s and the very dawn of the computing age, they are one of the tools of business that have changed little over the years. The first digital spreadsheets organised info...


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