Why a Spreadsheet System is the Worst Way to Manage Your Bookkeeping

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May 06, 2016

We all know that being a dab hand at Microsoft Excel is standard practice for organising your business accounts. It’s accessible and easy to understand, so people tend to keep using it as their business grows and bookkeeping piles up.

Unfortunately, spreadsheets aren’t really equipped to handle large volumes of data that have to be properly analysed for your accounts to be kept in order. There are other ways of doing things, and we’ve identified some reasons why spreadsheet systems just don’t cut the mustard in the long run…

It’s Prone to Mistakes

One of the caveats of Excel’s user-friendliness is the danger of inputting the wrong information. A misplaced decimal point, or an extra zero, can throw an entire calculation off-track. There’s no way for simple programmes to monitor and correct mistakes, since they are a medium of data storage, and won’t hold your hand through double-checking all your figures.

It’s Inefficient

Spreadsheets are certainly better than scratching down figures on paper, but they have drawbacks too. Cash flow and late payments can’t be quantified on Excel, unlike Cloud software, which can generate an overarching view of your finances and projected income.

You might also think that keeping invoices on different spreadsheets is a welcome boon to your business; this is not the case. There’s plenty of software out there with invoice storage capabilities, meaning you don’t have to root through files and documents to see how your accounts shape up.

It’s Basic at Best

Excel can’t do much more than present the barebones of your business interests. Tasks such as VAT calculation, payroll maintenance and credit control are beyond it. Investing in a programme that can do all of these things is a smarter way to solve the issues that are tied to everything you do.

It’s Insecure

Your servers can crash, hard drives can be destroyed, there are viruses everywhere… you’ll already be aware of the perils facing physical data storage, and you shouldn’t have to work in the knowledge that all could be lost in an instant. Moving your accounts to the Cloud erases the possibility of mass corruption and data loss, insuring your diligent accounting for years to come.

It’s Isolated

Cloud computing doesn’t stop there. The major benefit of this software is the ability for permitted users to have access to whatever you upload. Our accountants, for example, can instantly assess the facts and figures of our clients, making our dialogue simple and transparent. Spreadsheets, on the other hand, are much less accessible to multiple stakeholders and users.

With these points in mind, it’s time to seriously consider whether basic spreadsheets are good enough for your grand plans. You’ll never look back once you open yourself to alternatives, and we at Bright Ideas Accountancy can help you get there. Call 0161 669 4221 or email Info@biaccountancy.com to have a chat with our team.

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