Deciding whether to use Excel or cloud accounting software for your small business is a big consideration. Many small business owners opt to use Excel spreadsheets to track their finances so they don’t need to pay for additional software, but is it really worth the money you save? Learn what makes cloud accounting software a better option for most small business owners.
Cloud Accounting Software Is Easier to Use
It isn’t exactly easy to use Excel spreadsheets for accounting purposes. To use it for financial reporting, you need to know how to use formulas properly and filter data. If you aren’t an Excel wiz, learning the skills you need to set up spreadsheets for your basic accounting needs can be tricky.
That isn’t the case with small business cloud accounting software. Many programs let you create necessary documents, such as invoice templates and retrieve transaction data directly from your business bank accounts. Even moving your accounting to the cloud is simple as most of the process is completely automated.
Less Risk of Errors
When you use Excel spreadsheets for accounting, you have to enter all of your data manually which increases the risk of errors. A simple typo in a formula could put a huge dent in your wallet. Using cloud accounting software minimises your risk because the software does most of the more complex stuff automatically. In fact, a quick glance at your software’s dashboard gives you a complete overview of your business’s financial situation.
Keep Your Info Current
Cloud accounting software keeps all of your information up-to-date. Regardless of the device you use, when you’re looking at your financial data or how many people enter your business’s financial information into the system, you always have the most recent data in front of you. Conversely, with an Excel spreadsheet, you need to double-check to make sure you have the most recent version of the spreadsheet open to see the right info.
Do More in Less Time
Small business owners who use Excel spreadsheets for accounting purposes often have multiple spreadsheets going at any given time. However, small business cloud accounting software keeps everything in one place and it handles more than tracking your payments. The software helps you keep track of your expenses and monthly bills, so keeping your vendors happy and paid on time is simple. Also, it tracks everything from your payroll and employee timesheets to budgets and cash flow statements.
Outsourcing Is Easier
When you have more than one person using your company’s accounting information regularly, it’s hard to use Excel spreadsheets for tracking purposes. They don’t keep track of who makes changes and when they were made, like cloud accounting software does, so reviewing changes is harder. Also, a spreadsheet that makes complete sense to you might not have all of the information your accountants need to complete their job.
Ultimately, cloud accounting software is a better option for most small businesses because it lets you keep all of your financial information in the same place and ensures everything is current at all times.