There’s a good chance that the spreadsheet you just created for your work will contain a serious error. We’re not saying this, but rather a recently published study warns that 94% of these documents could lead to serious problems in the company.

Check with your Excel sheetThe study, led by Professor Pak-Lok Poon and involving collaboration from several academic centres in Hong Kong, reveals that many of the spreadsheets used in business applications may contain errors that affect decision-making processes. For this researcher, this high rate of errors is “worrying”.

Financial losses. The results show that these errors can lead to poor operational and economic decisions, financial losses, errors in pricing, and risks in sensitive areas such as healthcare or the operation of nuclear power plants. According to Professor Poon, “these errors can cause serious problems in many sectors.”

Previous educationThe study found that more and more people were creating these spreadsheets without any special training in this area, meaning the number of incorrect documents was increasing.

Analyzing tablesDuring the research, Professor Poon’s team analyzed scientific studies published in journals in the field over the last 35 years and reports announced at conferences over the last 10 years. They focused on the quality of these spreadsheets and identified problems that led to erroneous results, such as the use of incorrect formulas.

Quality controlAccording to these researchers, many of these spreadsheets are reviewed after they are created and should also be reviewed while they are being designed and when they are being created. Professor Poon’s suggestion is to adopt a life cycle for the development of a spreadsheet, with quality control being a fundamental part of its creation.

Image | Konior21 with Midjourney

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