Out with the Old Spreadsheets and in with ARO Software!
Complexity around managing Asset Retirement Obligation can be a troublesome task without the assistance of ARO Software. Asset Retirement Obligation is the general accounting rule that all public entities are legally required to follow when accounting for the future costs associated with the eventual retirement of any tangible asset. In order to calculate these costs, companies continue to lean on complicated Excel models or piece together extensive spreadsheets out of comfort and familiarity. However, as is often the case, the limitations and constraints of this approach quickly become apparent. There is a solution to simplify this process to get a company out of the spreadsheet nightmare. ARO Software solutions provide companies the ability to streamline Asset Retirement Obligation procedures while reducing the cost and effort associated with managing, maintaining, and updating cumbersome spreadsheets.
Below are three common challenges of managing asset retirement obligation and the solutions ARO Software can provide:
1) Version Control and Auditability – Trying to maintain and track the latest version of a spreadsheet is not much different than the telephone game you played as a child. As the document is passed from person to person, expecting quality results can become difficult. Trying to keep track of who has the latest version, which version has all the changes, who made these changes, why changes were made, and the timing of the changes, is nearly impossible. It becomes tough to trust that you are using the most accurate or updated information. Unlike a standard spreadsheet, ARO software allows companies to track all changes to the user preforming the action in one centralized location.
2) Risk Management –By building the correct logic and calculations directly into the program, ARO software greatly reduces the risk of human error and complex formulas. You can now focus on accuracy and completeness rather than the computational integrity of your spreadsheet.
3) Reporting – Although certain spreadsheets can be great for compiling and calculating data, preparing data in spreadsheets for reporting purposes can be tedious and time consuming. Changes in data that may not be tracked or saved correctly can cause reports to get out of line. The standardized reports included in ARO software allow streamlined information. Data can be updated with one click of the mouse and results can be easily distributed to key stakeholders as required. With ARO software, more time can be spent analyzing reports rather than formatting them.