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Hello Sir this has been mentioned as one of the disadvantages of Spreadsheet. If possible can you please simplify it.
There can be audit trail problems.
It can be difficult to track different versions of the budget, and how the initial draft of the budget was changed over time with different assumptions and input values. There may
be too many different versions of the draft budget. Some system of version control should be enforced to make sure that the current budget draft can be recognised and used by managers who are still working on
it.The budgeting process takes quite a long time, and so what happens is that an initial budget is prepared. Then it will be reviewed and quite likely it will be changed (because they might, for example, decide to change their estimate of the future rate of inflation, or their estimate of future sales). There might be lots of changes before the budget becomes final.
The danger is that they could end up with several budget spreadsheets being worked on by different managers and then lose track of which is the latest budget. So they need to have strict control so that everyone knows that they are working on the latest version of the budget.
I hope that helps 🙂
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