Is your accounting spreadsheet up to scratch?
There’s nothing more satisfying than when your complicated spreadsheet tallies up, especially when you’re using it for your accounts. But what happens when it doesn’t, or more worryingly, if you were to make a mistake that isn’t picked up for while?
In this blog, Janna Beeching, Director of Accounting and Tax shares the top five reasons how your accounting spreadsheet is letting you down and why you should consider online alternatives.
1.Can you spot the the mistake?
It’s so easy to throw a spreadsheet off track, yet incredibly hard to know when and where it occurred. By using spreadsheet programmes such as Microsoft Excel, you are putting 100% of your trust in both yours and its accuracy; but one simple formatting flop, an extra figure, or even a dicey decimal point can push your entire spreadsheet off course.
2. Caveman accountancy
Using a spreadsheet is truly going back to basics, as it cannot do much more than show your account’s core foundations. Savvy contractors need to be able to calculate their VAT, credit control, dividend allocation, payroll maintenance, to name but a few functions.
Unless you have a sound understanding of accounting and can work all this out yourself, then you’re going to be missing out on some key areas and potential opportunities for maximising your take home pay.
3. Pennies in – pounds out
Following on from point two, spreadsheets also can’t display your real-time cash flow or any outstanding payments. Cloud software will show you a generated overarching view of your finances and the income you can expect.
4. Fragile, immobile and at risk
HMRC can demand to see your accounts for the previous six years, so what do you do if your system fails you? Servers can crash, hard drives can break and viruses can corrupt your files – so why take the chance?
Having your accounts accessible in the Cloud means you can access them wherever and whenever you wish, plus they’re backed up, so there’s no need to worry about losing your data.
5. Spread the love
Sharing spreadsheets is a pain. You’ll have to be comfortable with emailing your accountant the latest version, then wait until they are done with it before you can edit it. Plus, there’s the added danger of them finding a mistake and then charging you for their time to rectify it.
Cloud accounts mean your accountant can have access at any point and have a real-time snapshot of what’s going on. No sharing, no saving multiple versions and no danger of mistakes.
What can Intouch Accounting do?
So after reading these points, ask yourself if it’s worth your time, effort and possibly the costly repercussions from using your own spreadsheets. Why not explore what specialist, online software that’s designed for contractors can do for you?
With Intouch Accounting’s portal, our expert Personal Accountants are able to access your accounts whenever and provide you with specialist advice and guidance. Request your free portal demo today and see for yourself how it can work for you. Or spend 99 seconds watching our video to show how our portal will make your life easier.
This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.