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In this day and age of Cloud computing, mobile apps and so on the old and trusted spreadsheet really has had its day when it comes to your accounting system.
Whilst it may seem like a very cheap, or in fact free option, using an accounting spreadsheet can be very limiting for you business.
There are a few danger signs to be aware and in fact it is not something that we often recommend clients to do at all – especially given the many free or cheap Cloud accounting solutions out there that offer so much more than a simple spreadsheet can ever do.
Here are our top five reasons for kicking your spreadsheet into touch and updating your accounting system ….
Why reinvent the wheel
There are so many professional accounting systems out there, why spend time inventing your own then having to update it as your business grows and you need more functionality.
If I had a pound for every spreads sheet that I had been sent that didn’t add up ….
Yes it can happen – someone changes a formula, adds a cell, overrides a calculation etc
Even when the sheet has been designed and provided by an accountant it doesn’t make it exempt for error.
Are you in control of all aspects of your finances through your accounting spreadsheet? Does it tell you how much your turnover is, what profit you have made, what does your cash flow look like, how much tax will you need to pay at the end of the year and so on.
Room for growth
As your business grows and you need more from your accounting system, will your spreadsheet be able to provide it without additional effort, set up, formulae etc? Will the accounting spreadsheet hold you back and result in more of your valuable time being spent on bookkeeping and basic accounting tasks just at the time when you need to focus on your business growth?
How often do you back up your PC? What if your PC gets stolen or breaks? Is your PC the only place that you can access your accounting records from?
Food for thought when keeping your accounting spreadsheet on your local machine.
And finally ….
We offer all of our client’s use of our FREE Cloud accounting system as part of their accounting services from us – so don’t rely on a spread sheet.
Make sure your accounting system is a 21st century, fit for purpose solution for your business.
About the author
The copyright of these blogs belongs to Elaine Clark of CheapAccounting.co.uk and MUST NOT be reproduced without her express permission.
I am seeing numerous copies of my blogs appearing on the web sites and blogs of other firms of accountants. I’m afraid that it is now time for me to take a tough stance on breaches of my copyright!