Do you use a spreadsheet to manage your bookkeeping and accounting? If so, it’s likely that you’re not alone – as it’s very easy to knock a quick spreadsheet together and use it to do things like tracking your customers or your stock on hand.
1. Spreadsheets rely on you for everything
The fundamental risk to your business if you’re using spreadsheets to manage your bookkeeping is that you have to do everything. Because you’re building a bookkeeping system from scratch, you have to put everything in place to make sure they’re suitable, accurate, and maintained. Even if you’re not starting from scratch and using one of the many spreadsheet templates out there, you still need to put in the time to find a suitable one and adapt it for your own needs.
- Spreadsheets can’t create invoices for you (and can’t email them either)
If you’re managing your books with spreadsheets, almost all the information that you need to create an invoice is (hopefully) held somewhere in those spreadsheets. Unfortunately, spreadsheets aren’t designed to quickly produce professional-looking invoices and send them to your clients.
For a lot of people, creating invoices means taking the time to copy and paste data from spreadsheets into a Word template, or maybe even creating an invoice template inside Excel that may not look great, but at least saves the copying and pasting. Either way, your business may be losing out – on the time that you could have spent elsewhere, or on the image of professionalism that your invoice sends to your clients.
- Spreadsheets can’t talk to your bank and incredibly hard to get any meaningful report in a short time.
Banks often want the current management accounts to be able to reach a decision. This means looking through different workbooks, double checking them with the bank statements to ensure they agree and this could take hours if not days to hammer out a meaning report.
With a proper accounting system this information would be readily available in real time and you could even have graphs and pictures to tell the story!
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Categories: Bookkeeping & VAT