Why You Should Not Do Bookkeeping on Excel?

Excel is a great tool to do maths, prepare tables and graphs for varying business needs. But Excel is not the best for bookkeeping. Bookkeeping is the daily recording of each transaction in the accounts to manage and prepare flawless reports at the end of each month. Therefore, the data need to be recorded in all books, accounts and needs to be checked for mistakes. 

Although, accountants were doing it manually years before. However, technology has changed the system now. Now, businesses are moving fast with the rapid introduction of new programs and software. Businesses are relying heavily on the latest cloud-based programs for ease of access. This means that if you want to beat the competition, you need to stay ahead of it. For that, you need to adapt the technological advancements.

Your Business Needs You:

Businesses require bookkeeping services all over the world. If your business is based in Toronto and is a small-scale business, you too will be requiring accounting assistance. If you are managing your books and accounts yourself, then you know how time taking it is. Therefore, businesses outsource or hire online accountants to save time, money and resources.

Managing all books, yourself on Excel is a waste of time and resources. Time is of the essence in the business world. Therefore, you should avail of it wisely. If you are spending hours on maintaining your books and balancing accounts, it means that you are focusing more on accounting tasks than planning for your business growth and catering to your customer’s needs. All business owners should actively participate in business marketing and management themselves, instead of locking themselves in accounting tasks. Accounting services can be outsourced but you are the owner and your business needs your time. 

Instead of recording transactions on Excel yourself, you should take help from an online bookkeeper in Toronto. Many accounting firms are providing online bookkeeping services in Toronto at affordable rates. This will save your time and you can get professional assistance at a reasonable rate with ease of access.

Chances of Error:

Excel was never developed for bookkeeping tasks. Although you can practice a lot on excel sheets on how to maintain accounts, in real-time, it is quite difficult. Excel lacks the advanced accounting options that you might be needing while balancing accounts. You need to enter each transaction on each account manually. This increases the chances of errors and mistakes. This also means that you have to deal with multiple accounts at a time, which is messy. 

To avoid such things, using an advanced accounting program with all basic accounting options should be your top priority. Accounting programs like QuickBooks, FreshBooks and Xero are generally used by all professional accountants. These programs are easy to use and have the all accounting options necessary for maintaining books online. Therefore, the chances of error are comparatively quite low compared to Excel accounts. You may export your data in another format if you want it to view it on Excel anytime. 

Stay Competitive:

While businesses are competing for online market share using digital marketing, you should not be wasting time on Excel sheets. You should be following the technological advancements in the accounting system to stay competitive in case of winning suppliers and customers. Online accounting and bookkeeping programs allow you to make timely payments, keep track of your inventories, stocks, account receivables and payables, along with generating online invoices, bills and payrolls. 

All these services are provided in QuickBooks and Xero software are not supported by Excel. Buying these programs to manage your business books instead of Excel will be a costly solution. Small businesses can not afford to buy accounting programs as they are subscription-based and each service costs a lot. It is a feasible idea to hire an accounting firm with a team of dedicated online bookkeepers to manage your books online in Toronto. Almost every accounting firm in Canada will be providing online bookkeeping services in Toronto. Online bookkeeping is a need of this time and every business requires it. 

Furthermore, bookkeeping is a regular task and so is accounting. If you hire an online bookkeeper to manage your books and business accounts professionally, then you will not have to worry about any accounting task. So, saving yourself from Excel stress you can enjoy and relax in your free time. Even if you still plan to proceed with your Excel accounts, it will become very complicated to audit it in future. To handle all audits professionally, you will be requiring professional accounting expertise. Therefore, hiring a professional accountant or an online accounting firm to fulfil all your accounting needs is important.