In general, your accounting software should be easy to use and effective so that you may concentrate on other elements of your life rather than doing the math.
Excel is a fundamental component of the Microsoft suite, so using it for bookkeeping may seem like a no-brainer because it is completely free and gives you the tools you need to manage your personal accounts and keep track of your income and expenses. But is manually entering your regular business transactions truly the wisest course of action? The most of the bookkeeping process is thankfully automated by a variety of accounting software solutions, allowing you to focus on more significant (and enjoyable) tasks.
Can I keep my books using Excel?
Spreadsheet in Excel. If you have a template that includes a transaction sheet, a chart of accounts, and an income statement page, you can utilize Excel spreadsheets for basic bookkeeping.
What are the pros and cons of using Excel for bookkeeping?
Pros of using Excel
Cons of using Excel
Pros of using accounting software
Cons of using Accounting software
Organise and categorise your information, accounts and transactions in a way that suits you
You can’t link your bank accounts and credit cards
Able to be synced and accessed across multiple devices
May not need everything that comes with your subscription
Some processes can be automated through built-in formulas and macros
You can’t automatically import and categorise transactions and data
Automated process which cut down manual input
Can be expensive if you need the top of the line
Generate graphical reports for your data, such as pie charts, line graphs and other diagrams
You have to self-check your data entry for errors
Able to specialise across multiple areas, such as payroll and inventory
May not be necessary for qualified accountants
Keep track of invoices and generate financial reports and statements via templates
Available templates may not suit your needs, and require significant time or alterations
Able to update subscription as your business grows
Generally have to be connected to the internet to operate it
Difficult for multiple users to work within a single file or spreadsheet
Analysis and reports available to help with business decisions
Customer service on hand to help with issues
Designed by, Dean Hecksher, 2021
Should I use Excel or accounting software? Accounting software usage: Excel spreadsheets may work nicely for you if you only need a solitary bookkeeping system to keep track of your personal money or simple small business bookkeeping, especially if you are comfortable using Excel. Excel, on the other hand, is typically regarded as being a little out of date in regards to accounting, given the plethora of web-based tools accessible. Cloud – based accounting software platforms like Zoho, Quickbooks, and Filly leverage AI technology to help you with your bookkeeping and accounting so you can concentrate on the aspects of your business. The majority of accounting software programs available, depending on the subscription type you’ve chosen, let you link bank accounts and credit cards so that transactions are imported automatically. They also, among other features, make sure that your bookkeeping is checked for errors and fraud, that employee payroll is set up, and that you can accept online payments from clients. Not to mention the information, statistics, and other resources at your disposal that can aid in your company’s next move.
In general, your accounting software should be easy to use and effective so that you may concentrate on other elements of your life rather than doing the math.
