As a self-proclaimed spreadsheet geek, this is not easy to write, but, using a spreadsheet to manage your rebates is a really bad idea. Yes they’re convenient and free, but did you know that using a spreadsheet to manage rebates can lead to errors, inefficiencies, and even security risks? Our blog explores these issues in detail and provides you with better ways to manage your rebates.
Using a spreadsheet to manage rebates may seem like a good idea at first, but it has several limitations that can cause more harm than good. For example, spreadsheets are not designed for rebate management and lack the necessary features to ensure accuracy and efficiency.
With multiple people using your rebate spreadsheet, there is no version control and that means that Andy in Accounts may just have made a copy to work on something at home and then forwarded a link to Lynn in Procurement and before you know it, you have no idea which spreadsheet is correct.
In addition, spreadsheets can be prone to errors and inconsistencies, especially when multiple people are working on them. This can lead to delays in processing rebates and even result in incorrect payments being made to customers. According to a recent study, 88% of all spreadsheets contain errors, which is a staggering number that highlights the risks of using these tools for rebate management! Imagine if your data was out by a single decimal point and how financially devastating that could be.
When it comes to managing rebates, relying on a spreadsheet can be a recipe for disaster. Human error is one of the biggest risks associated with this method, and it’s easy to see why. With so many numbers and formulas to keep track of, even the smallest mistake can have significant consequences.
For example, imagine that you’re manually calculating rebates for a large customer. You accidentally enter the wrong discount rate, resulting in an overpayment of $10,000. This mistake not only hurts your bottom line but also damages your relationship with the customer. They may lose trust in your ability to manage their account, leading them to take their business elsewhere. This is just one of many scenarios where human error can have serious repercussions.
Lack of Automation
One of the biggest limitations of using a spreadsheet to manage rebates is the lack of automation. Without automation, rebate management can be a time-consuming and error-prone process.
For example, imagine having to manually enter rebate data for hundreds or even thousands of transactions. This would not only take a significant amount of time, but it would also increase the risk of errors and inconsistencies in the data.
Using a spreadsheet to manage rebates can pose serious security risks. Since spreadsheets can be easily shared and edited by multiple individuals, it’s difficult to keep track of who has access to sensitive information. This can lead to unauthorised access and data breaches.
Additionally, spreadsheets are often saved on local computers or shared drives, which can make them vulnerable to malware and hacking attempts. Once a hacker gains access to a spreadsheet, they can easily steal confidential data and use it for malicious purposes.
In conclusion, it is clear that using a spreadsheet to manage rebates is a bad idea. The limitations of spreadsheets, the potential for human error, the lack of automation, and the security risks all make it an inefficient and risky method of managing rebates.
To ensure efficient and accurate rebate management, it is important to adopt better practices such as using software designed specifically for this purpose such as e-bate.
Using an intelligent rebate management solution to automate your rebate process immediately removes all the threats and pitfalls a spreadsheet poses. Not only this, it provides a platform to view live rebate data for quick decision making. By adopting this technology, companies can save time and money while also reducing the risk of errors and security breaches.
To see how e-bate works, book a demo here today.