Using Excel Spreadsheets For Accounts
Do you use spreadsheets to manage your accounts instead of an accounting software?
As many of you know, I am a big lover of Xero and talk about how amazing it can be for your business, but I just wanted to discuss why online accounting software’s are not a necessity for all business and that a simple Excel spreadsheet might do the trick.
Here are a few benefits of using Excel for your accounting if you are a small business:
Ease of use
Excel is a much simpler way of accounting, all you need is a template to follow and you are flying, all you have to do is simply input the relevant data.
While it is easy for you to customise templates, leading excel service providers like Microsoft provides you with an option to use invoice template from their vast library of an existing invoice, ledgers, reconciliation, budgeting, and other accounting trackers.
Helps compare financial datasets such as total accounts payable versus receivable to calculate cash flow volume within a given period.
For most businesses, spreadsheet software is readily available and often free. Whether your company uses Microsoft Office and can easily access Excel or runs on G-Suite where Google Sheets are readily available, most people with an internet connection can access a spreadsheet.
Located in Excel’s “Data” menu, what-if analysis helps you forecast results by changing datasets in a formula. In other words, this feature lets users test new results by changing data without removing or changing the primary dataset.
If you are a small business owner that is unsure about whether you should move to the cloud, I would love to have a chat with you and discuss if this will help your business or if spreadsheets might be the better option for you.