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TRANSCRIPT
Making best use of Excel
James WhymanChi YipStephen Hodgson
7 May 2015
What we will cover
• The role of Excel today
• The Tax technology roadmap
• Making best use of Excel
• How to get started
• Q&A
• Close
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Making best use of Excel
The role of Excel todayMaking the headlines
• 90% spreadsheets contain errors• Spreadsheets used in business decisions can be costly• One error can destroy reputation
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The role of Excel todayBefore you publish your #1 NYT bestseller
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The role of Excel todayStudent becomes the teacher
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He'd spotted a basic error in the spreadsheet. The Harvard professors had accidentally only included 15 of the 20 countries under analysis in their key calculation (of average GDP growth in countries with high public debt).
Australia, Austria, Belgium, Canada and Denmark were missing…
The role of Excel todayPulse survey results
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73%87%
53%
Percentage of those for which Excel is the most widely used software in the preparation of VAT returns
Percentage of those who believe increased automation
of VAT compliance is very important or critical
Percentage of those using Excel who think automation is limited
71%Percentage of those for which the business case for increased automation has not yet been made
The Tax technology roadmapManageable steps with an achievable timeframe
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Focus on controls and usability to mitigate risk
Process transformation
Robust spreadsheets
Increase automation to streamline the process
Redesign the process and prove the concept
Enshrine the process in fully automated systems
The Tax technology roadmapThe data value of challenge
8Source Reporting Consumer
Database & ERP output
Spread sheet manipulation
Paper based reporting
Interfaced data
Dat
a V
alu
e(q
ual
ity,
str
uct
ure
, acc
essi
bili
ty)
The Tax Challenge
The Tax technology roadmapWhere are spreadsheets used in indirect tax
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Making best use of ExcelDemos
Look at:
• Two anonymised VAT spreadsheets
• Case study
• Art of the possible
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Making best use of ExcelCommon themes
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Area Basic Advanced
Set the scene Welcome/Instructions sheet Queries sheetAudit trailMake it clear what are the key cellsReview summaryTraining
Contents sheet with hyperlinksConsistent cell styling across workbookAutomated audit trail
Formulae Keep formulae short and simple, and avoid hard coded numbersData validation
Detailed review of existing formulaeFind and explain all hard coded numbersRobust use of formulae
Standardisation Consistent structure across sheetsSeparation of inputs and outputs
Consistent use of formulaeStandardisation across workbooks
Protection Lock down the spreadsheetLimit input to specific cells will help protect the integrity of the spreadsheet
Lockdown based on user roleLockdown based on cell styling
Automation Roll forwardImport and exportUse of template to generate entities
Making best use of ExcelWhere?
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Improving individual spreadsheets
The highest risk spreadsheets could be improved. This might include making them simpler to operate, making the formulae and flow of information more transparent to the reviewer, and enhancing the controls present in them. Training would also ensure best practice designs are used in the future
Integration within wider process
Improving how the spreadsheet interacts with other processes helps validate its role, and gives greater confidence on the robustness of the wider process. For example: automating what information should and can come in; designing and automating key reports
Managing large numbers of spreadsheets
Large numbers of spreadsheets leads to requirements such as version control, knowing when and what changes are made and a need to identify and visualise links between workbooks.
Off-the-shelf or bespoke control environments help manage this
How to get startedReview report
• Review of structure, formulae, potential automation and risk management
• Priorities for each recommendation against the ease of implementation
• Provides specific actions that you can do – not just a “rating”
• Can be analysis as part of an end-to-end VAT review
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Q&A
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Recap: The Tax technology roadmapManageable steps with an achievable timeframe
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Focus on controls and usability to mitigate risk
Process transformation
Robust spreadsheets
Increase automation to streamline the process
Redesign the process and prove the concept
Enshrine the process in fully automated systems
Presenter contact details
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James WhymanDirectorTax Management Consulting
Direct: +44 (0) 20 7303 3438Direct Fax: +44 (0) 20 7303 4048 [email protected]
Deloitte LLPAthene Place66 Shoe LaneLondon EC4A 3BQTel: +44 (0)20 7936 3000Fax: +44 (0)20 7583 1198www.deloitte.co.uk
Member of Deloitte Touche Tohmatsu
Chi YipSenior ManagerTax Management Consulting
Direct: +44 (0) 20 7007 7643Direct Fax: +44 (0) 20 7303 4048 [email protected]
Deloitte LLPAthene Place66 Shoe LaneLondon EC4A 3BQTel: +44 (0)20 7936 3000Fax: +44 (0)20 7583 1198www.deloitte.co.uk
Member of Deloitte Touche Tohmatsu
Stephen HodgsonSenior ManagerIndirect Taxes Group
Direct: +44 (0) 11 5936 [email protected]
Deloitte LLP2 New Street SquareLondon EC4A 3BZTel: +44 (0)20 7936 3000Fax: +44 (0)20 7583 1198www.deloitte.co.uk
Member of Deloitte Touche Tohmatsu
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