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Making best use of Excel James Whyman Chi Yip Stephen Hodgson 7 May 2015

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Page 1: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

Making best use of Excel

James WhymanChi YipStephen Hodgson

7 May 2015

Page 2: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

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

Page 3: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

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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Page 4: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

The role of Excel todayBefore you publish your #1 NYT bestseller

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Page 5: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

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…

Page 6: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

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

Page 7: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

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

Page 8: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

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

Page 9: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

The Tax technology roadmapWhere are spreadsheets used in indirect tax

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Page 10: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

Making best use of ExcelDemos

Look at:

• Two anonymised VAT spreadsheets

• Case study

• Art of the possible

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Page 11: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

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

Page 12: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

Making best use of ExcelWhere?

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1

2

3

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

Page 13: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

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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Page 15: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

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

Page 16: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

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

Page 17: Making best use of Excel - FINAL - Deloitte US · Making best use of Excel Where? 12 1 2 3 Improving individual spreadsheets The highest risk spreadsheets could be improved. ... Making

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte LLP is the United Kingdom member firm of DTTL.

This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.

© 2015 Deloitte LLP. All rights reserved.

Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198.