Why You Should Consider Using an Excel Bookkeeping Spreadsheet
Excel is an excellent business software program and has an extensive feature set that you can use to keep track of your finances. However, if you want to take advantage of the numerous options it offers in your budgeting toolkit, you should also consider an Excel bookkeeping spreadsheet.
Basic bookkeeping requires that you make a spreadsheet of your sales revenue and expenses. You must update this sheet at least every month. This can quickly become tiresome and costly as you have to go back to the spreadsheet each time you need to see how much you’ve made or what you owe.
In addition, you have to know the date and time of the transaction. If the transaction took place before 2am and you left for work in the morning, you’ll have to go back to your spreadsheet and add the transaction to it. It’s a lot of time wasted and you won’t do anything that is necessary to keep your records up to date.
An Excel bookkeeping spreadsheet can cut out this hassle and provide a faster way to track your records. It will automatically track your sales revenue and expenses and update them on a monthly basis. It can even take into account tax returns or sales tax so that you don’t miss any days.
Basic bookkeeping can be done with a simple formula in your spreadsheet. You can add items such as: sales tax, employees wages, employment taxes, advertising costs, insurance payments, and many others. Add up all these amounts, subtract the applicable tax, add in the aforementioned figures and presto!
The options are endless when it comes to how to create a bookkeeping spreadsheet in Excel. You can create separate sheets for each department, which could be used to track budgets for individual departments. Each department can have its own sheets with its own name. This can create a user friendly and efficient dashboard that will allow you to view your profits and expenses.
However, if you need to track all your accounts in a monthly basis, then a bookkeeping spreadsheet is essential. You should keep all your transactions in a spreadsheet so that you have a chronological record of what you’re doing. Keep track of everything from sales to payrolls to accounting expenses.
It is recommended that you have two spreadsheets in your basic bookkeeping program. You should choose the one that provides you with the best functions for your needs. Of course, the greater the number of transactions you have, the more accurate and streamlined the results will be.
Once you have both spreadsheets made up, it is time to format the sheets so that they can be entered into your excel. You can use Microsoft Word to create the appropriate formatted text.
Once the sheet is ready, you’ll have a bookkeeping spreadsheet for your company. Excel is flexible enough to let you make the required changes and format the text so that it looks good on the sheet. The number of columns can be changed to suit your needs and you can even add additional rows to the spreadsheet.
Simple bookkeeping with an excel bookkeeping spreadsheet can save you time and money. You’ll also be able to keep track of your finances more easily. READ ALSO : simple bookkeeping spreadsheet