5 Ways an Accounting Software is Better than Spreadsheets

Forget Spreadsheets: Here’s How Accounting Software Can Save Small Business
|Updated on: May 14, 2024

Keeping track of financial transactions is essential for every business. For a small business in its initial stages, it may be  easy to manage this manually and many choose to do it on spreadsheets. But as the business grows, it becomes increasingly cumbersome to maintain accounts manually.

Accounting software is the way forward for growing businesses. It is a simple and easy-to-use solution that can automatically maintain your end-to-end accounting operations. Accounting software helps to record financial transactions, generate reports and perform other essential accounting functions in a business.

Here are 5 ways an accounting software is better than spreadsheets:

1.  Automates accounts and saves time

When you start out, manual accounting may seem to be easy enough to implement. But as business volumes grow, a manual accounting system can become a bottleneck that slows down all the related tasks in the company. Volumes and the increasing complexity of the business may call for more manpower just to handle the extra accounting work.

A small business that invests in a good accounting system will be easily able to grow and handle additional volumes in the business without any compromise on speed or efficiency and at no extra cost.

Auditing annual accounts and tallying the balance sheet is an arduous task if your accounts are being managed on a spreadsheet. In computerized accounts any discrepancy is highlighted immediately, preventing an imbalanced balance sheet.

It helps the management monitor the business better without wasting any time on waiting for reports to be created. A nimble business that is quick to react will be able to respond to the competition better.

Why Small Business Needs an Accounting Software?

Best Practices to Evaluate, Purchase and Implement Accounting Software

2. Provides actionable reports

Cash flow is one of the most important aspects of a business. To strategize better you need to be able to clearly view your business income and expenses. Reports on cash flow are essential for informed decision making.

One of the greatest advantages of accounting software for small businesses is its ability to generate reports. A basic accounting software will be able to give you standard reports. An advanced accounting software will also analyze the data and give you insightful reports. You can even view historical data to analyze positive and negative trends.

3. Accurate ledger entries

Accounting software for small business use has made accounting errors a thing of the past. With manual accounting there is the possibility of human error creeping in, despite utmost care. Automation ensures that every entry is reflected accurately and completely in all the relevant books. While there may always be a data entry error, an error caused by not updating a certain ledger or writing incorrect numbers are avoided.

4. Remote access

Accounting software designed for small businesses allows easy remote access. Accounting software that allows you to access your books when you are on the go is invaluable when you are traveling or away from your desk. You can pull up all the information that you need when you have an important business call. If you have a great idea out of the blue, you can analyze your business records to see how the new idea could impact the business.

5. Improved security

In a competitive business environment keeping your business information out of the wrong hands is essential. Manual bookkeeping is not very secure. The security that a computerized system offers is safer than a ledger locked into an office cabinet. A software also offers you the option to authorize employees to access specific accounting files. The security algorithms keep your data safe from unauthorized people.

Make the switch to accounting software now

Convert your books of accounts from spreadsheets to the computerized system to keep up with today’s competition. It not only saves time and employee resources, but it can also smoothen the entire tax filing and audit process for your company.

If you have been managing your books of accounts in a spreadsheet, choosing an accounting software will mean entering all the data manually into the software. TallyPrime’s new excel import function allows users to import ledgers and transactions seamlessly.

The software offers a powerful dashboard where you can get a holistic view of your business performance and track your business's key financial aspects. With TallyPrime you can also share financial reports generated via WhatsApp.

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