One of the most critical aspects of business is knowing your current business financial health. If you don’t know how your business stands financially, you could be leaving money on the table. This is why businesses have opted to begin using accounting software, such as QuickBooks, to improve their understanding of their business finances. Which method is better for your business? There always seems to be an eternal battle between QuickBooks vs. Excel in your business.
The Breakdown Of QuickBooks vs. Excel
In the past, using spreadsheets affectively was an extremely useful talent. Spreadsheet Wizards could help you calculate any equation or mathematical situation that you desired. The only issue is that these Wizards are the only ones who understand how the spreadsheet works. With modern accounting software, this is no longer the case. Anyone can be taught to use QuickBooks. The tools and reports that are available with QuickBooks far outstrip its predecessors. What are the real benefits of QuickBooks vs. Excel?
In the battle of QuickBooks vs. Excel, here are a few reasons to move away from Excel for managing your financial health:
- QuickBooks is developed for the sole purpose of managing financial health. With an Excel document, you have to create your own process, which may not be scalable.
- Modern accounting software is designed to utilize high impact trends, reporting an analysis that enables you to accelerate your business planning. By using Excel, you must develop and maintain these processes yourself.
- In the current climate, it can be pertinent to have an audit trail for your business. Modern accounting software performs this as part of its core functions. With Excel, you would need to maintain multiple versions and histories of your Excel files in order to guarantee your audit trail.
- Not all business is done from the office. With modern accounting software, you can access your books and financial records from anywhere in the world at any time. All you need is a simple login. If the only copy of your financial system is on Annette’s computer back in the office, you will have to wait till you get in on Monday morning to check your statements.
- By using Excel, you must be the expert. You have to craft, create and maintain your own formula that could be incorrect. With QuickBooks, the formula is prebuilt and checked by a robust team of experts.
- Should you ever decide to outsource your accounting or bookkeeping, it is much easier for your new bookkeeper to work with QuickBooks versus understanding and transferring your existing Excel document into their ledger.
None of this is to say that you shouldn’t ever use an Excel document to manage your finances. Having a ledger is the most important part of financial health responsibility. However, utilizing the modern tool sets that QuickBooks (and software like it) bring to the accounting table can potentially accelerate your business. In regard QuickBooks vs. Excel and which nourishes and will grow your business, we’d recommend QuickBooks. This software can help you to find the dollars you didn’t know you had. In addition, it can protect your assets, your business and your employees by providing trend analysis with an easy to understand interface.
If you are currently on an Excel document for your financial tracking, reach out to Steph’s Books today. Let us do an evaluation and help you move to a modern accounting system. It’s an honor to help our clients with their finances, and we love watching their business grow. Call us today!