Many small business owners start off using an Excel spreadsheet to keep track of their company finances. While this method is fine early on, it can quickly create problems as the business grows and becomes more complex.
Excel requires manual data entry, copy and pasting, and users to enter formulas, all of which will inevitably lead to errors. Planning the layout of spreadsheets can be complicated and time consuming. And once the format is set, it’s almost impossible to alter it if data has been populated. Perhaps most alarming aspect is the fact that spreadsheets are easily susceptible to fraud. A number can easily be changed without recording who made it.
Cloud accounting software removes many of the complications of Excel recordkeeping. It is easy to use and automates much of the data entry, minimising the likelihood of user error. Cloud accounting software is easy to setup and scalable as your business grows. It also prevents fraud by allowing the administrator to set the level of access for each user and recording an audit trail for every change that is made.