Excel is very versatile tool and one that is used in many businesses of all sizes. Although it has proved to be a great tool, one must know that it will not be the preferred tool for all situations.
Since Excel is so versatile and open to many purposes, we are tempted to use it as a complete invoicing and accounting system. Although a spreadsheet might be easy to use, as you start invoicing more and more, it quickly become clear of the pitfalls of using this as the main invoicing tool for your business.
Excel prone to human error
Excel is prone to human error, from unintentionally replacing a previously stored invoice by trying to us it as a copy template, to sending that invoice with information belonging to a different client that was not changed from the previous copy.
Frustrating for bookkeeping and accounting tasks
Although this may be very frustrating when it happens, but it becomes a lot more frustrating to actually do other bookkeeping and accounting tasks like keeping track of all revenue, expenses, budgets, bills to pay, money to collect and bank reconciliation in different spreadsheet tabs or different files from month to month every year.
Even though you might think that your business is still in its diapers and feel tempted to use excel for your bookkeeping think again. Businesses are la buildings without a good foundation from the start might lead to catastrophe later down the road.
Online web based business finance solutions
There are many online solutions out there for small business accounting, from desktop applications, mobile apps to web based solutions. We recommend using a web or cloud based solution as you can manage your business finances anytime, anywhere and you don’t need to worry about your computer crashing, losing data or keeping up with backups.
Try Cashflow for Free, it only takes 60 seconds and start invoicing, expense tracking, budgeting, setting reminders and a whole lot more.