Q: What is the benefit of moving from Excel to cloud accounting software

Small businesses often start out using Excel – but that’s only doable up until a point. Like every teenager eventually becomes an adult, your business needs to evolve and grow.

Why Excel isn’t a long term solution

Excel can do a large number of tasks, is easily available and is very widely used in the world of business. And it would be wrong not to not acknowledge this up front. However, while the application is sturdy, it’s the spreadsheets created while using it that aren’t – and this often causes issues down the track.

Some problems associated with Excel as an accounting software substitute

• Spreadsheets are often riddled with mistakes.
• As long as manual data entry, copy paste techniques, and formula errors are a reality.
• Setting up an Excel spreadsheet that meets all of your financial needs requires a lot of thought and planning. It takes a lot of time to set up reports and requires manual tracking. You may be constantly adding or changing information on your spreadsheet.
• In Excel, you need to know exactly how you are going to use the data before you start, as there’s no flexibility to configure it later.
• Many users run into performance issues when they work with large amounts of data or combine lots of worksheets. It’s system overload. It doesn’t integrate with other small business applications.

Why cloud accounting software is better for business

Cloud-based software is designed to be scalable, cost-effective and tailored to your business needs. You can have unlimited users, but can access certain information, giving you reassurance that sensitive data isn’t out in the wild. You’re guaranteed maximum up-time of the software, and backups are done automatically and are highly secure. The offsite servers will give you peace of mind. It also takes the pressure off your business to provide adequate storage, which can be costly.
There’s little chance of fraud using accounting software, as there is an audit trail in the system. It leaves no room for doubt about who has done what, and when. Reporting becomes easy, and takes far less time. Profit and loss, balance sheets, management reports, tax returns, depreciation schedules and foreign currency gains and losses are all prepared with a single click.

Reasons why accounting software is better than Excel

• Clear, simple dashboards: An easy-to-use dashboard which you don’t have to set up yourself, will give you confidence from the get-go. When you have a clear financial view from the start, you can make better business decisions.
• Everything in one place: Your company’s real-time financial data is kept in one central place – online, in the cloud. Bank statements can be fed and invoices can be scanned into your software. This reduces the amount of data entry and potential mistakes.
• No need to wait: Get the most out of the reports you will need for your business, with a few clicks, no need to wait for month end. Real-time reports and budgets are easy to view and share.
• More accurate financial information: Create the information any of your customers or stakeholders might need at a moment’s notice. Your business will be equipped to manage its finances more accurately. This is especially important around tax time when data will be shared with an accountant.
• Historical data always available: All of the historical information that you might need is available at your fingertips. A proper audit trail ensures your data cannot be compromised. It also records a document of every business transaction.
• Integrate with other apps: When you use cloud-based software, you will be able to take advantage of apps that sync with your financial data. Inventory management, invoicing and a whole lot more, saving you time and reducing costs.

While it can often be hard to alter the way you do business and embrace change, the potential rewards are huge. The truth is, Excel was simply not built to replace accounting software – so it’s time to give your business the room to grow and succeed, without restrictions.

Join our upcoming webinar to learn more!