Valuation software has been around a long time, ValuSource has been developing valuation software for 35 years! But there are still many valuators who use Excel to do valuations. Part of the reason some valuators still use Excel is that there are a number of misconceptions (“myths”) about using valuation software. We want to clear up those myths!
- Professional valuators don’t need to use software
Business valuation software is designed to support the valuation process and eliminate the heavy lifting associated with doing valuations manually. This means the user can apply their expertise to areas that really count. Software does not replace expertise, it just provides a smarter, faster and easier way to perform a valuation. How many CPA’s still do taxes manually? Zero!
- It is easier to use Excel
Excel is obviously comprehensive and has tons of capabilities and functionality. The power of Excel is extraordinary, but it takes a great deal of time to develop and maintain complex Excel spreadsheets. And since business valuation analysis is complex it requires sophisticated Excel spreadsheets. Since ValuSource software works on top of Excel, it leverages all the benefits of Excel and delivers a turnkey, comprehensive valuation application. All the analysis, data and report writing is integrated within the valuation application, but the underlying tools are still Excel and Word.
- Software is a black box
Since the software is built on top of Excel it’s both transparent and customizable. Transparent because you can view all the formulas and see exactly how things are calculated. Customizable because the valuation analysis is editable directly in Excel, so you can make whatever changes you feel are necessary.
- Lack of flexibility
There is a learning curve to using valuation software, but since ValuSource’s software is built on top of Excel and Word, it’s extremely flexible. You can add worksheets to your projects and even bring in your own workbooks to link to the reports.
- I Cannot use my own data
Since the valuation software is built in Excel, it’s easy to bring in any data that you may have. If you happen to subscribe to ValuSource data, it’s even easier because there is one-click data integration which automatically populates your analysis with data from our twelve valuation databases.
- Software is for beginners
The software is great for new valuators because it provides a step-by-step approach for performing a valuation. However, expert valuators can benefit from the standardized and automated approach. Having the mundane Excel tasks automated gives the expert valuator more time to focus on the important aspects of the valuation, rather than spend time developing and maintaining Excel spreadsheets and Word documents.
- It will take too long to learn how to use the software
It will take a little time to learn the software, but less than you may think. And if you know how to use Excel and Word, then you will have no problem using the software.
- I am an expert, I do not need software
Valuation software is designed to make your job easier and more productive. Its like an electric bicycle, sure you can still use an old-fashioned pedal bicycle but why not cover more ground and go more places? Business valuation software helps you work smarter, not harder so you can do more valuations in less time.
Whether you are a seasoned valuator with hundreds of valuations under your belt, just starting out or doing only a handful of valuations per year, using software has advantages for everyone. To learn more about how business valuation software can work for you visit www.valusource.com/casestudies