The Importance of Best Practice

Precise, careful spreadsheet modelling is essential in the public sector. If data is not managed correctly, it can have serious consequences. Learning best practices and efficient methods will safeguard your handling of data without compromising your time. Here at Operis, we are experts in the field and provide industry-leading tools and courses on the topic, including specific training for the public sector.

The risks of bad spreadsheet modelling

In 2012, the nine billion-pound West Coast Main Line contract bidding was flawed, resulting in millions of pounds having to be refunded to bidders. Incorrect forecasted data was given to the potential groups, leading to First Group threatening to sue the government itself. Many put this collapse down to bad spreadsheet modelling.

The event led to the government reviewing and improving its spreadsheet modelling practices to prevent a similar situation from happening again.

What is best practice?

The Cambridge Dictionary defines best practice as being: ‘a working method or set of working methods that are officially accepted as being the best to use in a particular business or industry’. In the world of spreadsheet modelling, ICAEW (Institute of Chartered Accountants in England and Wales) leads the discussion on best practice spreadsheet modelling standards.

The ICAEW has produced twenty principles for good spreadsheet practice and a financial modelling code, which Operis was involved in creating. These comprehensive guides present the best spreadsheet modelling practices. Some of these include:

• Determining the role spreadsheets play in your business
• Choosing a standard and remaining consistent across your company
• Designing for longevity
• Building in checks and alerts to locate errors from the beginning
• Keeping formulas short and simple
• Avoiding advanced features where simpler ones can achieve the same goal

The benefits of using best practice

1. Efficiency

Using best practices will save you time and allow you to reach your goals accurately. Overall, the adoption of efficient spreadsheet modelling practices allows you to make informed financial decisions, mitigate risks, and ultimately achieve tangible cost savings while ensuring fiscal responsibility and accountability.

2. Cost savings

Saving time will also save you money in terms of both creating your spreadsheets using efficient best practices but also reduce time spent correcting errors caused by bad technique.

3. Compliance

Following best practices will often ensure that all your data is organised in a way that is compliant with the necessary legal standards. Working with this methodology will reduce the need to spend time going back through your work and making changes in retrospect.

4. Reliability

You can be confident that your spreadsheets are reliable both for yourself and those you share them with by standardising everything using best practices.

5. Decision making

Having reliable spreadsheets will also lead to better decision-making. Executives and management will be equipped with clear and trustworthy data to determine further strategy.

6. Risk mitigation

Ensuring every aspect of your spreadsheet modelling adheres to best practices will significantly reduce the risk of damaging errors.

Learn with Operis

Operis offers industry-leading spreadsheet modelling courses specially designed to benefit public sector employees. These courses were developed in partnership with government officials to create the best possible training. We are proud to have already delivered training to The Department of Transport, The Ministry of Defence, Ofgem, and Defra.

By participating in this course, you will benefit from:

• In-depth teaching on best practices
• Learning to write good code
• Confidence to inspect and review formulas
• How to write and record macros
• And much more

Discover more about our tailored Excel modelling training, see upcoming dates and request more information on our Spreadsheet Modelling for the Public Sector page.

Use OAK to streamline your work

Operis have released Operis Analysis Kit (OAK), their in-house Excel add-in to benefit financial professionals in both the public and private sectors. The software can automate audits and tedious tasks, streamlining your work and freeing your time to focus on important decisions. By using OAK, you can enjoy professional spreadsheet modelling assistance whenever you need it.

Sign up for a 30 day free trial to experience the benefits of OAK for yourself. Enjoy features that will enable you to detect errors in formulas and identify inconsistencies with ease.

Find out more

Get in touch with our expert team today to discuss how our public sector training solutions can equip your team to excel at best-practice spreadsheet modelling.

Call us today on +44 (0)20 7562 0400 or email oak@operis.com.