Authors
Terence F. Cuff
Abstract
A high-quality well-designed, well-executed, well-documented major financial or tax analysis spreadsheet typically is slow and expensive to design and to compose. Preparing spreadsheets on an urgent basis increases the risk of error. Compromising spreadsheet structure, documentation, testing, and verification to meet budget constraints can lead to spreadsheet errors.
The discussion below addresses the design and documentation of spreadsheets, using Microsoft's Excel software, for real estate practice and real estate tax practice. The thrust of the article is to encourage improving spreadsheet design, documentation, clarity, validation, and accountability.
The discussion approaches real estate tax and financial analysis spreadsheet design and documentation from the standpoint of what the consumer needs, what the spreadsheet reviewer needs, and what the professional's firm should preserve for its records to ensure long-term accountability.
Sample
Design and documentation of spreadsheets.
This article encourages improving spreadsheet design, documentation, clarity, validation, and accountability.
Methodologies examined include:
- Designing the spreadsheet to meet user needs.
- Forming a sound basis for decision making.
- Designing a spreadsheet that others can easily understand.
- Designing a spreadsheet that others can verify easily.
- Avoiding spreadsheet errors.
- Avoiding being sued.
- Explaining methodology and assumptions in plain English.
- Using variables described in plain English.
- Documenting data sources.
- Establishing who prepared, reviewed, and approved the spreadsheet.
- Using cell protection to avoid inadvertent changes.
Publication
2012, Real Estate Taxation, Volume 38, Number 4, Third quarter, pages 166-188
Full article
Not available
