Why you Should Move from Excel to Cloud Accounting Software
Small accounting businesses start using Excel as they probably find it easier to manage; however, that’s doable only up until a point. Just like every teenager becomes an adult, it’s a must for your business to evolve & grow.
In the current industry, some of the most successful accounting organizations are deploying Cloud accounting software. So, it’s better to follow the same path to be on the gaining end. In this blog post, we will find out how Cloud accounting software holds the edge over traditional Excel usage practices.
That’s True! Excel is NOT a Long-term Solution
No doubt, Excel can help businesses conduct a huge number of tasks. It’s quite easily available and may be that’s one of the prominent reasons behind it’s wide use in the world of business. However, there are some issues down the track these spreadsheets bring along.
Firstly, spreadsheets are riddled with mistakes very often. A spreadsheet that has been done badly brings adverse effect for almost any small business. In the year 2012, an error made in an Excel spreadsheet posed a $9 billion loss to JPMorgan bank.
As long as copy & paste techniques, manual data entry and formula errors remain a reality, such spreadsheet horror stories will continue to haunt many businesses in the coming time. Let’s dig deep to find out the biggest issues in using Excel as a substitute for accounting software –
Setting up a Proper Excel Spreadsheet Does Take Time
Suitably setting up the ideal Excel spreadsheet meeting all of your financial requirements demands a lot of thought & planning. Setting up things such as expense reports, invoice tracking etc requires time too. At times, you may have to constantly add or change information as required on your spreadsheet.
Making a Strategy Before Starting is Must
Before going to use Excel, you must know precisely how you would be using the data as there’s almost no flexibility to configure the same later. You must decide in advance what you want the reports to be named as besides ensuring that each report is correctly time stamped.
Audit Trail is Never a Possibility
No doubt, Excel spreadsheets are highly susceptible to unusual frauds because it’s fairly easy to change available information. Moreover, it’s much harder to track the person making the changes. Just imagine if your team member enters $1,000 rather than $100,000.
No Integration with Business Applications
It’s not unusual to run into performance issues while working with large pools of data and combining lots of worksheets. An Excel spreadsheet doesn’t integrate with small business applications that allow doing other tasks for your business. An accounting software on the other hand will integrate with apps that allow smooth inventory management & time sheeting.
What Makes Accounting Software a Better Option Compared to Excel
Get Clear Financial View
An accounting software comes with an easy-to-use dashboard that you don’t need to set up yourself. So, when you have a pretty clear financial view right from the very start, you need not worry about making any sort of uninformed business decisions.
Your Data is Always Accurate
Using an accounting software reduces the overall data entry mistakes that lead to better data accuracy. With accurate data, you can stay assured of making correct reports and better tracking.
Useful Reports in Quick Time
With a few clicks, you can get most of the crucial reports you need. You can forget waiting for month end to get a specific report. Additionally, complex tasks such as sales tax returns can be quickly completed in minutes rather than hours.
A Clean Audit Trail Assureds
Entire historical information that may be required by your investors is available right at their fingertips. A suitable audit trail ensures that your accounting data can never be compromised. It even records each & every business transaction. A complete audit trail would reassure your investors that your company meets the tax department’s requirements.
Cloud Based Accounting Software is Perfect for your Business
Modern accounting firms that keep pace with innovative technology have already embraced Cloud based accounting software rather than going for traditional Excel approach. Cloud accounting software is not just easy to use, but is also accurate.
Such software is intelligently designed to be extremely scalable, cost-effective and fully tailored to your small accounting business requirements.
You can not only have unlimited users but also can choose the specific level of access for each user. This, gives you the reassurance that your sensitive accounting data is safe. You’re guaranteed optimum uptime of the software. Backups too are done in extremely secure, offsite servers that further gives you peace of mind.
Moreover, there’s minimal chance of fraud as there’s a proper audit trail in the system. So, there is no room for doubt regarding who has done what, and exactly when.
Reporting becomes fairly easy, and requires far less time. Just with a single click, you can prepare profit and loss reports, balance sheets, sales tax returns, management reports, depreciation schedules, foreign currency gains and more.
You can give any of your team members access to your data and they can access it anytime, while being anywhere. Cloud accounting software enables you share your financial information as required with your accountant, bookkeeper, employees, or financial advisor. Using Cloud-based software also allows you to leverage other software and apps that sync seamlessly with your financial data.
Having known all the benefits Cloud accounting software bring along, you can definitely change your conventional practice of using Excel spreadsheets. The current figures suggest that a good percentage of accounting organizations have gained tremendously by going for QuickBooks Cloud hosting, Sage hosting etc.
It’s thus recommended that small businesses who have not embraced Cloud accounting yet should go for it. Considering the wide range of benefits Cloud accounting brings along, the decision to make a switch should not be that hard in fact for such businesses.