For years, many small and medium-sized businesses are using excel spreadsheets to track down the different records or payments they have made for the business. The quite obvious reason for using the same is the ease of access and they are free to use. It’s not bad if you are using the Excel, as being one of the versatile spreadsheets it also offers much functionality. But, what if you would offer with something better? Definitely, you would choose the better option. The best option here is an accounting tool and definitely, it comes with the specialties that make your efforts lessen and ends with more effective results.
Accounting Tools Vs. Google Spreadsheets for Bookkeeping
Better Back-Up and Restoring Abilities
One who is doing the task using spreadsheets might have issues with the backup and restoration of data. When you are typing the data in your spreadsheet, any sudden issue with your device may spoil your all efforts. On the other hand, using the accounting software for bookkeeping services keeps your data safe by immediately. Even when you would turn off your device then you would ask to save the transactions before leaving. Also, one or more copies of transactions are saved to the preferred device in advance. So, if any issue is done to the one, another one can be used.
Free of Cost
When you are using a free online version of spreadsheets, then you are wrong as actually, you are paying for the same. The free version of spreadsheets, you can use for the bookkeeping, but, you have to spend a lot of time creating different accounts and statements. On the other hand, when you are using the automated accounting software or program, then the entire work will make your own on its own as there are available different charts of accounts and accounting tables and other things may be required for bookkeeping services. This would save a lot of time and effort as well. Even, some of the accounting tools are also available for free.
Lacking The Historical Data And Real-Time
When you would use spreadsheets for the bookkeeping, then to keep track of real-time data and statics becomes hard to keep. Spreadsheets are actually not meant for historical data and so many times, this valuable information has vanished and so analyzing the trends for accounting information becomes hard to collect. Also, you have to make do entries in your account manually. So, this becomes even more problematic. On the other hand, using accounting tools have no issues in keeping track of the historical data. So, comparing them would become easy. Also, many charts and tables are available there so that you can choose one from them suitable for you and thus the entire work would remain sorted.
Absence Of Customization And Scalability For Accounting Process
Using spreadsheets for the accounting processes is a helpful idea to make development as required. If the proper coding is missing, then completion of work is impossible. On the other hand, when you use the accounting tool, then there is no requirement of making any changes to the bookkeeping activities as you can choose the software for customizability and scalability did for you.
Automatic Financial Reports Preparation
When you are manually entering transaction data in your spreadsheet, then making the calculations and preparing the financial reports would prove to be quite burdened work or maybe you may have some mess up in a spreadsheet layout because this work requires lots of skills. The task of Pivot tables, making graphs and charts and running macros needed professional skills to make the work error-free. But, when you are using the accounting software, then they have available with a financial statement and reports in line so that you can choose one from the matching to your needs and demands. This saves much of your efforts.
Easy to Use
This is the vital aspect that makes you think of a while you should use a spreadsheet for bookkeeping or not? The advantages of using the accounting tool are many (as mentioned above). This way you can give your accountant an opportunity to void the transaction which is actually not given to the rest of the members. On the other hand, when you are using spreadsheets, you have to try harder to keep your data safe from entire users as if any of them delete any of the transactions then your work would go in vain.
It’s true, adopting anything new comes with lots of confusion and hesitation, but, when the new things come with uncountable benefits then you should not hesitate to try the one. So, you have to invest your valuable time in accounting tools and software and be sorted.