Move Your Accounting From Excel to an Automated Software Solution

Small businesses that do their own accounting usually start out using Microsoft Excel or paper forms, but they quickly find out that neither does an adequate job. excelThere can be no denying that Excel is widely used and performs a number of tasks admirably, but a poorly executed spreadsheet can have a ripple effect that hurts the business year over year. One prime example of this came in 2012, when JP Morgan had an Excel spreadsheet error that ended up costing them billions. While that is an extreme case, it’s not an isolated incident.

Accounting in Excel is Hard

There are a number of potential problems that can arise when you substitute professional accounting software with Excel. The most common mistake is underestimating how difficult it is to actually use. You’ll need to have at least one person who is proficient in Excel and able to create macros and pivot tables in addition to report configuration and data entry. Re-configuring reports after you start data entry can be a nightmare, so be sure to have a plan before you get started.

Keeping track of all your transactions in Excel can be a nightmare, as it simply doesn’t have the power to spot mistakes such as duplicate or missed entries. Spreadsheets can also be easily altered, which in turn can lead to fraud and trouble with the IRS.

Automation is Key

Accounting software that automates many manual entries is a better option for your small business. It removes data entry errors, reduces the opportunity for a disgruntled employee to commit fraud and generally has an easy to follow interface. Use it virtually by finding a cloud-based solution and you’ll have 24/7 access to your financial data without needing to worry about backing it up every 5 minutes.

With accounting software you can be sure that the data you are looking at is accurate, especially since it can be integrated with other small business software and linked directly to your bank accounts. The reports that you need can be accessed with the click of a mouse, while all the information included in the software is automatically kept up to date. This can be especially useful when it’s time to prepare your taxes.

Excel is what small businesses have been relying on for years and change doesn’t come that easy. What you have to ask yourself is whether you’re willing to accept the financial risks that come with using it. Be proactive and bring your business into the present by using cloud-based accounting software. Call me today so I can help you find the best solution.

How Technology Changed the Role of the Accounting Department

Technology has changed the way we do business across the board and the accounting department isn’t Although some aspects of accounting have been slow to change, the days of milling away on a calculator working through a stack of papers are long gone. Admittedly, there are still many accounting firms and departments that are still behind the times when it comes to adopting the latest technology, but that’s changing rapidly.

Technology helps improve the flow and efficiency of the accounting department. It facilitates better accounting practices and improved interactions between clients and business owners. Finding the right tool can be difficult, but with some guidance and focus you’ll find the benefits far exceed the cost.

Technology Eliminates Data Entry

The days of data entry personnel are fading quickly as new technology makes their job less relevant. Of course data can be entered in by the client or other staff, but more likely than not it’s transferred from one bank to another, submitted at point of sale or scanned automatically The simplicity of entering new information as it is being taken in means that the job of data entry is almost obsolete.

Technology Improves Time Management

Single systems with multi-user and remote access allows access to your businesses financial information whenever you need it. This means that you don’t have to wait for your accountant to gather the information and bring to your office. Instead, you can log into the system at any time, get the information you need immediately, and make educated decisions about your business.

Technology Facilitates the Separation of Roles

Because the information is so readily available, it’s easy to separate the roles and accountability of those who help process the information. Previously, your business would come to a halt if your accountant left without notification, became injured or ill and was out for weeks or months at a time. It was difficult to find a replacement who could step in and figure out the accounting system. Now, the different roles in the accounting process can be shared which means that you reduce the impact of one person leaving your company.

Cloud Accounting Platforms

Cloud computing is where everything is headed. Not only because it’s convenient, but also because if facilitates a more mobile world. Cloud-based systems provide access to your data when you need it, in an encrypted and safe environment. No time delays, no wasteful double entries and no difficulty in getting the information you need.

Today, technology is rapidly changing the way we do business and keep track of our accounting information. The simplicity and direct entry means that instant information is now readily available so you can make more informed decisions. If you’d like some help picking out the right solution for your business, I’d be happy to help you. Contact me today!