Why You Should Move Your Accounting Away From Excel
Published: 29th Mar 18
Categories: Planning, Success
Why You Should Move Your Accounting Away From Excel
Improve your business functionality with a move from Excel to cloud accounting software
You often find that small businesses such as those in the retail and hospitality industry often start out using Excel – but that can only help you so far before it starts to hold your business back. As your business evolves and grows, you need to switch to online accounting software instead. Below we discuss some of the top reasons why this switch from Excel to cloud accounting software is vital to grow your business.
The problems with Excel
It’s not that Excel is a terrible system, rather it just doesn’t fit the needs of a growing retail business and its accounting needs.
Using Excel can be complicated
To use Excel successfully, you actually need to train yourself or obtain training in the system. It’s like having to know a programming language. Many businesses misjudge their level of expertise and the programme fails to deliver
It’s time-consuming
To actually set up a good Excel spreadsheet that meets all of your financial needs requires a lot of time, planning and thought. It is a timely process to set up things like invoice tracking, or expense reports and you may find yourself in a position where you constantly need to change or add information to your spreadsheet.
You need a strategy in place before you start
When you use Excel, you need to know exactly how you are going to use the data before you begin. You need to know what you want to name your various reports and the cells you wish to print and ensure each report is correctly time stamped.
There’s no audit trail
The use of Excel spreadsheets means a higher risk of fraud due to the fact it’s easy to alter information and difficult to track who it is making those changes.
It doesn’t integrate with other business applications
Many small businesses who use Excel often run into performance issues when they work with large amounts of data, include scripts or combine lots of worksheets. This is particularly true for retailers who deal with lots of information on a daily basis. The system basically overloads. You don’t have an option to alleviate this stress either because it doesn’t integrate with other small business applications that can help you run your business more efficiently. For example, if you use accounting software for your small business, it can integrate with apps that do time sheeting and inventory management.
What makes accounting software better than Excel?
Below we discuss seven main advantages cloud accounting software has over the use of Excel.
1. Feel confident with the system
Accounting software is a lot easier to use than Excel. With an easy-to-use dashboard in place, you’ll feel confident from the start. Armed with a clear financial view from the beginning, you won’t need to worry about making uninformed business decisions.
2. Your data is accurate
Your business’s real-time financial data is kept in one central place, in the cloud, online. Everything is ‘automatic’ in that bank statement information is directly sent into your software. This reduces the sheer amount of data being entered and the risk of human error.
3. Out-of-box reports
You won’t need to wait until the end of the month for your reports, you can obtain most of the reports you will ever need, with a few clicks. Budgets and reports in real-time are easy to share and view, making various tasks much easier, including the burden of the VAT return. You can complete the return in minutes instead of days!
4. Up-to-date information
Small businesses evolve each day, so you can be ready with all the necessary data any of your investors might require at any time. Your business can be equipped to manage its finances more accurately and efficiently.
5. You will have a clear and clean audit trail
If your investors (or potential investors) need any information about your business, it’s available at their fingertips. By having a proper audit trail in place, you can ensure that your data will not be compromised. It also records every business transaction, including payments to employees, sale contracts, and business expenses.
6. It syncs with other business applications
When you use accountancy software that is cloud-based, you can take advantage of the multitude of apps that sync with your business’s financial data. Invoicing and inventory management can take the hassle and time out of small business accounting, leaving you to focus on more important things, such as the growth of your business.
7. 24/7 Access to data
You can access your data wherever you need it, whenever you need and by whoever you wish. Cloud software allows you to share your financial information with your accountant, employees, and financial adviser.
The benefits of moving from Excel to cloud accounting software are clear for your business. It’s perfect for small retail businesses who have lots of financial information to deal with on a daily basis. If you’d like to know more or need a helping hand, get in touch!
What our clients say...
Very fast response times, flexible, easy to work with. They helped us sort out our financial management and take it forward to the level we need as we grow.
Phillip Oppenheim, Managing Director at Cubana Bar & Restaurants
The team is friendly, dynamic, efficient and works with you for the benefit of your business and a fraction of the cost of having full time in house finance staff.
Jamie Robb, Managing Director at Marlborough Tiles Ltd
I am highly satisfied with the professionalism and expertise demonstrated by VIRGATE. Their streamlined systems and proactive communication ensure efficient and accurate financial management. The team’s dedication to client-centricity is commendable, providing personalized attention and valuable insights. I confidently recommend their services to anyone seeking reliable accounting solutions.
Olivier Mention, Finance Operation Support Manager
Barworks is a London focused bar group with 18 sites. We decided to out-source our accounts function in order to reduce our central costs, improve the efficiency of our management accounts process.
Scott Chillery, Barworks FD
Now more than ever we must rely on a financial partner that we can both trust in and who will ultimately save us money with Sarah and her team exceeding all expectations.
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They have gone above and beyond, using the latest technology to combine various elements of the business, and providing expert advice on our finances.
Moe Hashimi, Managing Director at 42 Acres Ltd
As a business that has previously received quite basic bookkeeping and accountancy services, Virgate are in a different league. It’s a ‘proper’ bookkeeping and accounts service aligned to my needs.
Louise Palmer-Masterton, Founder at Stem + Glory
Their communication is excellent, and this is really important to us. They’re always there if we need them. They’re happy to explain things to us with patience and clarity.
Sidonie Warren, Founder at Papersmiths
In just a short time we have already seen a 10% increase in our gross profit. As well as other efficiencies such switching to National more cost effective suppliers.
Angelee Sidar, Founder at Soul Deli
Working with Virgate has been an exceptional experience. Their professionalism and personalised approach to our financial needs have truly streamlined our accounting processes, making day-to-day operations much smoother. What stands out is their dedication to client service—Virgate ensures that we always feel supported, even through complex financial scenarios. Their ability to tailor their services to the unique needs of our property has made a significant difference in how we manage and plan our finances. Virgate’s proactive and hands-on approach has allowed us to navigate challenges more efficiently, making them an invaluable partner. I would highly recommend Virgate for any organisation seeking reliable, client-focused financial management solutions.
Saira CIELOSZYK, General Manager Ibis & Adagio London Sutton Point
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