Say goodbye to spreadsheets
In my last blog, I talked about the different types of information you need to know as a business owner. Now it’s time to have a frank discussion about how you’re recording this information… I hate to tell you, but it’s time to say goodbye to spreadsheets.
In all my years of accounting, I’ve never come across a set of business accounts that have been entirely accurate where the owners used a spreadsheet for their bookkeeping and financial administration.
For all of you shaking your head at the computer and saying “I’ve been doing it this way for years”, hear me out. Below are a few reasons spreadsheets for accountants are the work of the devil.
The cons of spreadsheets
Incomplete & inaccurate – One of the golden rules in accounting is that there is never just one transaction, always two! A spreadsheet will not only allow you to enter any figures you want but also leave blanks wherever you like. Leaving you with a complete set of wrong financial figures at the end of the year.
Just a summary – A bookkeeping spreadsheet in most cases provides business owners with a simple overview of their annual finances. You won’t see it integrated with other data sources to provide you with the bigger picture.
Not reliable – Ultimately inaccurate, and one-sided financial data is not reliable for business owners who want their business to survive and thrive in the future.
Setting up a full-proof accounting system
I’m not an accounting software salesman, but I am well-versed in their benefits and can confidently say that their advantages are endless.
Cloud-based options are the way forward! Allowing you to access your data anywhere in the world and on a mobile device whilst you’re on the go.
They also provide you with a unique opportunity to integrate a wide range of applications and data sources.
When you choose from one of the many cloud-based accounting systems available to business owners, you’re looking at achieving accurate finances at a speed you’ve only dreamt about before.
I hope that having read this, many more of you out there will soon say goodbye to spreadsheets because if you haven’t already guessed when it comes to accounting, I can’t stand them.
I’ve written about this subject in more detail in my book The Keys To The Safe. It’s also packed plenty of helpful examples to allow you to understand even further, the benefits of utilising a cloud-based accountancy system. To learn more for yourself, you can download it here.
Considering moving your business accounting to a cloud-based software system? Stay tuned for my next blog when I will be discussing what’s really involved in bookkeeping.
Antony Holdsworth BSc (Hons) FCMA CGMA