The spreadsheet : is it an asset in an accountants balance sheet?

Abstract

This project was undertaken with the following three objectives in mind: (1) to confirm authors' claims that Lotus is the most popular spreadsheet, (2) to confirm the extent to which spreadsheets are used in accounting work, and (3) to discover whether the usage of spreadsheet in accounting contributes to work efficiency. The methodology included a questionnaire survey targeted at local SMEs in both the service and manufacturing industries in Singapore. Survey findings indicate that the spreadsheet is used extensively to prepare accounting work (such as consolidation of financial statements) and that its usage has contributed to work efficiency. 70% of the survey respondents reported productivity increases of between 20% to 60% in terms of time saved. However, the survey findings also disclosed that Lotus is the second most popular spreadsheet, after Excel. This is in line with a Straits Times article (Nov 23, 93) reporting Lotus as the number 2 in world-wide market share. Common criticisms of Lotus included weak graphical and database facilities. It is viewed by users as more of a worksheet tool rather than as a 3-in-1 package. In view of the latest software market trend towards "suites", where weaknesses in one program IS compensated for by the strength of another program in the same suite, technological improvements alone may not be an adequate solution for Lotus. Also, as competition gets tougher, business strategy plays an important role. Hence, plans to increase/maintain market share should perhaps take into account strategic factors like: -building market share quickly, -enticing upgraders to switch, and -preventing existing customers from switching. To cap it all, this project has confirmed the role spreadsheets play in contributing to work performances within the accounting arena and dispelled the "myth" (belief) that Lotus is the leading spreadsheet.