5 reasons you should not use excel for accounting

5 reasons you should not use excel for accounting

Finance/Accounting Blogs

by Nikhil J 1858 Views 0

1. Spreadsheets can’t precisely predict money stream

Greater than 80% of companies that don’t survive cite poor cash-flow administration as a main purpose (supply). It’s not that these companies aren’t earning profits, it’s that it will get more and more more durable to forecast and finances as the corporate grows.

2. Excel isn’t Truly that Straightforward (or Intuitive)

It doesn’t matter whether or not you’re numerically illiterate or not, Excel requires programming experience particularly for those who want it for monetary reporting. Formulation, filters, knowledge connections, and so on. make establishing a spreadsheet to cowl your primary accounting wants a nightmare! You might also discover that you simply’re continuously tweaking your template to get the result you want – getting it proper is downright time-consuming and irritating. Or you possibly can use accounting software program that has all of the studies and monetary group instruments you want built-in.

three. In the event you use Excel, it begs the query: who owns the Grasp Spreadsheet?

How have you learnt which model of the doc is up-to-date? What if multiple individual in your enterprise wants to make use of it at one time? Whereas Excel requires you to e mail the newest model forwards and backwards, Pi.TEAM lets you simply check in on-line between units. It additionally lets you already know the numbers you’re taking a look at are present.

four. Safety Points Not all knowledge is appropriate for everybody in your enterprise to see.

As an example, HR info corresponding to compensation charges, social safety numbers, and residential addresses shouldn’t be accessible to only any worker. Not solely does defective safety put your staff in danger, it additionally places your small business in peril of a lawsuit or penalty. So what’s Excel’s reply to spreadsheet safety? Entry password safety. In different phrases, individuals can both see the whole spreadsheet, or they’re blocked solely. For sure, this isn’t splendid in conditions the place customers require totally different levels of entry that fall in between being aware about all the things and nothing.

5. Excel Spreadsheets are Error-Susceptible

Guide knowledge entry, human-error and components errors can critically mess together with your monetary monitoring and planning. Cloud-based accounting software program instruments comparable to Pi.TEAM, Xero, or Intuit QuickBooks restrict knowledge entry and record-keeping errors as a result of they do a lot of the exhausting stuff for you – routinely. You’ll additionally get a dashboard view of all of your monetary knowledge, from expense reviews to timesheets, budgets to money circulate statements – a lot simpler than managing a folder filled with Excel spreadsheets.

With on-line software program, all the things is automated – knowledge feeds, back-ups to the cloud, syncs with different enterprise apps. Excel doesn’t even come shut. You additionally profit from new options and updates from the software program supplier (at no cost) and with out interruption to enterprise processes. All of it occurs within the cloud, no new licenses or improve charges required. Have to entry your accounting knowledge on the go? Put away your laptop computer, cloud-based accounting software program providers are additionally accessible out of your telephone or pill. You may as well give your accountant or bookkeeper entry privileges – a superb means to make sure that everyone seems to be utilizing the identical knowledge whereas sharing an Excel spreadsheet shortly opens the doorways to model management hell. Fearful about Worth? Don’t be. Starter packages start at lower than $1 per thirty days whereas extra strong agreements are priced at round $20 per thirty days and most suppliers supply a free 30-day trial. Are you able to make the transfer from Excel? Simply click on right here to proceed signup.