75% of college financial executives feel that they do not have confidence in their long-term financial planning, as schools face increased challenges on meeting expenses and generating revenue, according to a new study conducted by PFM Solutions at a recent WACUBO conference.
There’s a continuum associated with analyzing and projecting financial performance. It begins with your financial statements. Financial statements are collections of data – credits and debits. These transactions eventually roll up into a story about what happened over a certain time period – last quarter or last year for example.
Back in 2010, economists Carmen Reinhart and Ken Rogoff published a report that stated countries with a debt-to-GDP (gross domestic product) ratio greater than 90 percent would find it significantly more difficult to grow their economy. Their work was widely cited, and was used as a major part of Paul Ryan's "Path to Prosperity" budget, but a new study shows that its data is flawed thanks to a mistake many office-workers are familiar with — an incorrect Excel formula. The study from three University of Massachusetts researchers claims a number of flaws in Reinhart and Rogoff's earlier work, one of which is an Excel coding error that omits data from five countries in the analysis (Next New Deal shows an example of the mistake in its analysis of the UMass study).
Spreadsheets used to be actual sheets of paper. Sometimes, a bunch of sheets of paper taped together.
Any calculation made on a spreadsheet was done by hand, and these could take days to complete for an accountant or bookkeeper. It was tedious. One little adjustment to these calculations meant a whole day of erasing and filling the same boxes out again.
The term financial modeling software is often used to describe a broad suite of use cases, from accounting software (capturing and organizing the results of historical transactions), to business intelligence software (slicing, dicing, and pivoting historical data to extract information), to budgeting software (rolling-up distributed current-year detailed estimates to create the essentially static document known as the budget), to forecasting software (projecting the detailed budget using relatively simple projection logic).