The Challenges of Traditional Service Charge Management
Many housing associations still use fragmented systems - primarily Excel spreadsheets - for managing service charges. While spreadsheets have been the go-to tool for decades, they introduce significant challenges, particularly for large and complex organisations.
Let's outline some of the challenges of this...
🟪 Data silos: Spreadsheets typically operate in isolation from other systems, such as asset management, repairs management and or finance tools. As a result, housing associations struggle with keeping data accurate and up to date across multiple systems, this also increases the risk of inaccuracies, non-compliance, and regulatory problems.
🟪 Inaccuracy and errors: Human error is a constant risk with manual data entry. Something as simple as a misplaced decimal point or incorrect formula can cause discrepancies, which can then spiral into larger financial issues over time.
🟪 Time-consuming: Spreadsheet-based service charge management is often slow and labour-intensive. It takes considerable time to compile, cross-check, and verify data, meaning adjustments or budget updates are delayed.
🟪 Lack of governance: Without automated workflows or approval processes, it is difficult to ensure proper oversight. There is often no formal process for managers to review calculations before they are sent to tenants, which can lead to costly mistakes.
🟪 Compliance risks: Disconnected spreadsheets and manual processes make it hard for housing associations to stay compliant with regulations, leading to increased risk of tenant complaints, referrals to the ombudsman, or scrutiny from regulatory bodies.
In the worst cases, these inefficiencies and errors result in financial shortfalls, where housing associations are unable to recover the full cost of services provided to tenants. For some organisations, this can amount to millions of pounds in lost revenue—money that could have been reinvested into the housing stock or community services.
Implementing modern service charge technology like the Propsys360 Service Charges Module provides significant improvements over traditional, spreadsheet-based methods. By automating processes, integrating key systems, and providing accurate real-time data, Propsys360 transforms service charge management into an efficient and transparent operation.
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