Spreadsheets have been used for accounting by many businesses for years. Excel spreadsheets may seem like a convenient and cost-effective way to manage your accounts, but improvements in cloud accounting software mean your organisation might benefit from upgrading. We look at why you should consider cloud accounting software over spreadsheets and how you can make the switch seamlessly.
1. Data Entry
Cloud-based accounting software, however, allows you to upload receipts and invoices directly and maintain accurate records, eliminating double entry and reducing errors.
The problem with manual data entry is that it’s not only tedious, but it’s also prone to mistakes. Typos can lead to big mistakes, including errors on your tax return that can lead to missed deductions or penalties.
2. Lost Data
The larger a spreadsheet gets, the more likely it is to crash or corrupt, resulting in loss of data.
Maintaining records for audits and tracking the company’s progress is important. However, your data is vulnerable if it is left in a spreadsheet. Cloud accounting software provides multiple layers of protection, keeping your data safe and secure.
A cloud accounting package can instantly sync your data between different systems and is designed to integrate well with other applications, enabling seamless data sharing and collaboration.
Manual spreadsheets are clunky and don’t migrate well across platforms, which can lead to lost files and a lot of stress and wasted time.
4. Audit Trail
Our job as bookkeepers is to keep accurate records. Accounting software allows you to easily keep track of all changes made to your files. A spreadsheet won’t provide a clear audit trail in the same seamless manner as a database.
Spreadsheets tend to be more time-consuming than cloud accounting software, especially if you need to manage large amounts of data. When using spreadsheets, you spend a lot of time entering data, creating reports, and reviewing information. This is a lot of work and not an effective use of your time! With cloud accounting software, processes are streamlined and efficient.
The sharing feature of traditional spreadsheets is typically slow and can be confusing when multiple people want to work on a document at the same time. Cloud accounting software is designed for collaboration and, as mentioned earlier, automatically syncs to all devices for seamless sharing and creates an accurate audit trail.
Cloud-based accounting management platforms encourage better communication supported by tools which allow collaboration across teams, meaning better control over shared data which can prevent project delays caused by inaccuracies.
If your small business is still using outdated spreadsheets, now is the time to consider a more unified approach.
Digitising documents enables easy access to information that is beneficial, as it provides users with instant information that is accurate, efficient and safe. For a small investment, it offers a big return, saving you both time and money.
Considering these points will help you choose the best accounting software for your numbers.
Alternatively, to find out more about what accounting solutions we use or how Venice Virtual can help you manage your bookkeeping call us today.