When to upgrade from Excel to a dedicated accounting solution
Although not a dedicated accounting software, Microsoft Excel has been a staple in the business application suite for a long time and is still widely used. A lot of small businesses and self-employed workers initially turn to excel to keep on top of their accounting requirements.
Whilst Microsoft Excel has its benefits – it is fairly easy to use and readily accessible – it could actually be holding your business back instead of helping you move forwards.
What happens when your business outgrows Excel?
Excel is limiting once your business has outgrown its basic features, leaving you prone to mistakes and problems that can have disastrous effects on the rest of your business. This is because excel relies heavily on manual data input, copy & pasting techniques and formulas, all of which can result in errors. All of this manual data entry and configuration is also time consuming and laborious to say the least.
On the other hand, accounting software such as Sage 50 Accounts, is designed to automate most of your bookkeeping processes, therefore reducing the amount of time it takes whilst also minimising the potential for mistakes and human error.
A software solution that grows with your business
By nature, Excel spreadsheets are also difficult to edit once they have been initially set up. This results in an inflexible accounting process that cannot adapt as your business changes. Software packages designed for small and growing businesses however, are far more adaptable and will expand to meet the increasing demands of your business.
When accounting for a small business, you also need to ensure that your accounts can be properly audited. Accounting with excel makes it difficult to leave a comprehensive audit trail and as such can make your processes susceptible to fraud and misuse. Using an accounting software application such as Sage ensures that you always have a clear audit trail.
Entire business integration
Another benefit of using dedicated accounting software to manage your finances is the integration potential with other applications. Integration allows you to streamline other processes within your business and make important information available to those who need it. A good example of this is Sage 50cloud accounts working with Act! CRM – this integration allows vital accounting information to be pulled into the CRM software to give users an overall picture of a clients account.
With various HMRC changes already implemented or due to come into effect soon it may be time for you to reevaluate your small business accounting processes. For help and advice on migrating to a Sage 50 Accounts solution contact our support team.