Question

Why would someone choose to use a prior month’s Excel file as a starting point rather than a template? What are some of the costs and benefits of using the prior month’s file instead of a template?

Answer 1

Answer:

Benefits of using prior month’s Excel file as a starting point rather than a template:

It will have better turnaround time to complete and lesser error due to:

• For example let us assume we have prior month file for sales budget which may have budget, actual and variances. If we use the prior month file we may use a formula to have input numbers from output numbers of previous month. If we use a template all input data may have to be keyed in. Usage of prior month's file saves time and it is prone to lesser errors
• The calculations may require some specific adjustments on top of formulas used in template. If the same adjustments (as done in prior month's excel file) are required to be done in this month also , it will involve lesser effort than effort required to build in those adjustments in the template.
• The prior month file may have built in links to other reports (MIS, master budgets, specific reporting requirements) , which a standard template may not be having.
• It may save time in formatting for reporting / interfacing, keying in/modifying headers which may be required in template.

Cost of of using prior month’s Excel file as a starting point rather than a template:

• If we use prior month's file, any existing error may get repeated.
• There are possibilities that some new formulas /adjustments required, get missed or some adjustments done previously but not required now, gets into calculations