One of things I find most annoying, is when I take on a new client and they tell me that their accountant has recommended that they use an excel sheet for their bookkeeping.

Don’t get me wrong I love spreadsheets. If I didn’t, they would probably throw me out of the institute of chartered accountants. It’s a bit like the calculator I carry with me everywhere; a pre-requisite of the job.

In fact I even have this mug, sitting proudly on my desk >>>>>>>>>>

Spreadsheets have their place, but not for bookkeeping.

Here’s Why…

“I Love Spreadsheets” by Craig Chew-MouldingCraig Chew-Moulding is licensed under CC BY 2.0

  • They are slow

    It takes an absolute age to do bookkeeping on a spreadsheet and time is our most precious commodity. With Xero you can automatically import bank information and set up rules to post items to the correct place. 80% of the work is done for you.

    With a spreadsheet you are repeating the same data entry each month.

  • They are inaccurate

    Don’t just take my work for it; JP Morgan once sufferred an estimated $5.8bn (£3.8bn) of trading losses because of ‘spreadsheet inaccuracies’.   > Read more

    Spreadsheets require 100% input from the user and humans make mistakes. Software contains checks and balances and eliminate mistakes.

  • They give you poor Management Information

    You should be able to get a profit and loss balance sheet and a list of debtors/creditors from your bookkeeping system in seconds. Never mind running a budget, tracking cash and producing a list of top customers. Spreadsheets could probably do this but I refer to points 1 & 2 above.

    You might get there eventually but you should be getting this info quickly and it should be accurate.

If your accountant has recommended a spreadsheet, then they are not thinking about what is best for your business. It may be time for you to re-think your accountant and it’s definitely time to rethink your bookkeeping package.

I am sorry to say that many accountants only think of themselves and the work they have to do to produce your accounts instead of thinking of you and what your business needs when making recommendations and giving advice.

So do yourself a favour; ditch the spreadsheet and give me a call.