It is probably fair to say that 90% or more budgets are put together via a mish-mash of spreadsheets fired across the entire organisation. This is commonly know as Spreadsheet Budgeting.
Spreadsheet budgeting is where people in various Departments are asked to complete the figures that pertain to their segment of the business, in a spreadsheet of course. This spreadsheet is then handed upwards to the next level, where it will be consolidated, only to be further consolidated still when it reaches the higher levels. In principal it does not sound too bad, until we start cutting and pasting, overwriting formulas, using incorrect or outdated files and so forth, not to mention the hundreds of backups and outdated spreadsheets used in all the previous budgeting efforts.
Why does this happen?
Until recently it was not possible to effectively bind a spreadsheet to a unique source. If you want Dept. A´s budget, you will get Depts A´s budgeting spreadsheet, which you will then need to copy, paste or cell reference to the file you are using to consolidate the numbers. DANGEROUS! you can copy it in the wrong place, you can overwrite, you can indeed be using an outdated version of the Dept A´s budget. How long will it take you to realise? How long will it take you to fix? How many times has this mistake been made in the past?
Is there a solution?
YES! Inter-connect your spreadsheets in the CLOUD.
Using Google Sheets and the Import Sheet Add-on, you can bind your spreadsheets together in a logical and sensible way. You bind Dept. A´s spreadsheet to the consolidating one, and you basically create a flow bottoms-up, all connected, all identified, all of which will allow for cells to be referenced to each other, across spreadsheets, and in the CLOUD!
No matter where you are, the figures you put into your spreadsheet will filter through to the corresponding bound ones, WITHOUT cutting or pasting, WITHOUT sending files all over the place, WITHOUT the need to create a million backups of everything. Google Sheets will always allow you to go back to the historicals of the file without the need of creating a copy.
BIND THAT SPREADSHEET