As specialists in small business accounting software we often receive enquiries from growing SMEs who require an accounting system to cope with their sudden or progressive growth. One of the questions we ask upon initial discussion is “What are you currently using at the moment?” and nine times out of ten we hear the words “Microsoft Excel”.
This brings music to our ears, because although Excel is great for a large number of tasks, there is no way a business with ambition can survive using spreadsheet software for its accounting.
Although Excel might be sufficient at present, down the line as processes get more complex and the volume of invoices and transactions produced on a daily basis increase, companies will outgrow spreadsheets and be required to look for a more robust system.
The key to growing your business therefore is to think ahead and have a long-term strategy in place. Ask yourself:
If I continue doing what I’m currently doing, will I be able to reach the goals I want to achieve?
If the answer is yes and you already have an efficient system in place, you don’t need to read on. If the answer is no and you’re currently using Excel for accounting, continue reading…
5 reasons why you need to ditch the spreadsheets immediately!
1. Manual data entry
Excel spreadsheets require you to manually enter data rather than import it. If you process transactions and use Excel, you will be required to rekey information which is time consuming and can give you a headache. Rekeying information can also result in human error, whether you’re using formulas or not.By investing in an efficient accounts system you will benefit from fewer manual processes, eliminate human error and streamline your business accounting. You can choose to create fields and produce codes related to your business requirements so you don’t need to manually input data at all.
2. Time consuming
Using spreadsheets can be time consuming for a number of reasons. When you are originally setting them up they require a lot of thought and planning. When your business grows your contact list and number of transactions will grow and it will become difficult to drilldown and search for information. Spending time creating and updating spreadsheets can result in a back log of work which will hinder your growth.Accounting software increases productivity in the workplace by automating processes and procedures. It makes reporting quick, VAT returns easy and you’ll always be in the know about the financial position of your company, which in turn will allow you to make better informed decisions.
3. Poor reporting
When creating a spreadsheet for your accounting you need to think about the end result. Ask yourself what am I using this data for? It’s ideal to have a strategy in place before you start so you can create the reports you need down the line. Excel isn’t very flexible and won’t allow you to configure reports automatically as you would with accounting software.With a sufficient accounts system you will be able to quickly identify how money flows through your business. Dashboards and tools will allow you to view your company information in real time and give you a running total of your current accounts.
4. It’s not secure
Excel spreadsheets do not have an audit trail and don’t monitor who is making edits and changes to data, which makes them susceptible to fraud.Accounting software allows you to store important information securely, and with a cloud based solution you will benefit from daily backups. Users can be assigned different access levels so only people with authorisation can edit information, giving you peace of mind when it comes to security
5. Doesn’t integrate
Excel is unable to integrate with applications that are necessary to run a growing business. One of the benefits of an accounts system is that it integrates with other parts of your business, such as stock management, payroll, job costing, time sheets, etc. As your business grows you may require additional modules, such as a CRM system, which can be easily linked when using accounting software.
By saving time, giving you peace of mind and offering you flexibility as your business grows, accounting software is guaranteed to give you a return on your investment. It will allow you to focus on the important things and eliminate time consuming admin tasks.
If you’re ready to embrace change and let your business grow, contact Monpellier on 0191 500 8150 or email info@monpellier.co.uk. We’ll discuss your needs and find the best solution for you and your business.
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