If you’re the owner of a small business, you may not need to hire an expensive CPA to do all your samll business accounting. Assuming you’re familiar with the basic concepts, you might be able to manage all your accounting with Excel spreadsheets.
However, in order for this option to be ideal for your business, your company will have to be one which does not have a complicated financial situation, and you’ll need to have some free time to devote to the practice. You should also be aware that this is a non-automated accounting process, which means you might easily make some data entry errors if you’re not careful.
Excel accounting templates
Excel provides access to a number of small business accounting features through its interface, and every time you open up a new Excel spreadsheet, you’ll have the option of choosing from a list of templates they provide. You can choose a template for general ledger, invoicing, bank reconciliation, and even personal-finance trackers. The more you start to use any of these templates, the more familiar you’ll become with them, and the greater value you will derive from using them.
Advantages of using Excel spreadsheets
One of the best things about using Excel spreadsheets is that you can generate some fantastic reports depicting your accounting data. You’ll also be able to generate comparisons across several months, so that you can find outliers in your daily cash outlays. Customers can be segregated into groups based on location, size, or purchase amounts, so that you can determine who’s actually spending the most with your company.
To make a long story short, you can arrange the date almost any way you want, in order to find the information you’re looking for. Once you’ve formatted the data the way you want, you can use a bunch of built-in Excel functions to give you greater insights into your business data. You can find out the rate of return on your cash flows, you can easily reference a chart of accounts, and you can use a whole catalog of graphing tools to create a visual depiction of all your small business accounting data.
Financing for small businesses
If your small business is in need of financing to help maintain a positive cash flow, or to grow your business, we may be able to provide financial assistance.
Contact us at Capital Connex, and let our financial specialists explore some options for funding with you.