The first reason to consider moving from spreadsheets to accounting software is an obvious one. You will probably save yourself some costs. This is because some basic bookkeeping packages will cost you less than paid spreadsheet applications. Another money saving reason to use accounting software over a spreadsheet is that you could be cutting down on costs with your accountant. Accountants often complain about the spreadsheets they receive from their clients. Unless you are an expert with a spreadsheet they can actually end up in a terrible mess. Accounting software on the other hand should provide you with a clear template for your transactions. This means that the end result is usually easier to read by accounting professionals, which means they can sign off your books more quickly. You are also likely to spend less time on the phone sorting out problems if you use a specially designed bookkeeping package.

The second reason to stop using spreadsheets is to save time. When you start with a spreadsheet you are presented with a blank canvas. Accounting software generally provides you with a laid out chart of accounts. You're told where to enter the data. Furthermore, anyone who uses a spreadsheet will know that they will often need to check that the formulas are correct. Accounting software normally calculates all the sums for you. You don't need to add in any basic formulas yourself. If you use a spreadsheet you will also need to create a new one at the end of the week, month or year. If you use an accounting package you should be able to start a new year with ease.

My third and final reason to think seriously about moving from a spreadsheet to accounting software is probably the most important one. Good accounts packages will help you to understand accounting. Therefore you will very likely gain more control over what is happening in the business. Often people who use spreadsheets will have a list of their sales and another list of expenses. These are single entries. We only have one side of the transaction. An accounting package should organise the data into double entry format.

In a nutshell we should be able to see at a glance both sides of a transaction. We should see where the money came from and where it went to. This means that you are able to assess how the sales and expenses are affecting your bank account, or your credit card account. Also when you use a spreadsheet you have no way of reconciling your data with the bank account. You should be able to do this with any standard accounting software. You need to know at all times what is happening in terms of the cash flow for your business and this is a great example of how accounting software is better than spreadsheets.

In conclusion, if you are still using a spreadsheet to do your bookkeeping maybe it's time to consider moving to accounting software. Save not only money and time, but also improve your accounting knowledge and therefore your control over the business.

For bookkeepers everywhere who are thinking of stopping using spreadsheets and moving towards accounting software that is as intuitive as a spreadsheet please click on the link.

Catherine Pain Accountz.com Ltd South Fens Business Centre PE16 6TT UK 00 44 1354 691 650