Keeping books of accounts in excel has always been a debatable topic. Some people prefer to use MS-Excel for keeping books of accounts, while some others opt to use MS-Word for the same purpose. However, this blog post is written with an objective that it will help all those who are still confused between using Microsoft Excel or Microsoft Word for book keeping purposes.
Why Should I Keep My Books Of Accounts In Excel?
1) Easy To Use:
Using Excel for this purpose is a lot easier than using MS-Word. Microsoft Office comes with pre-defined formulas and formatting options, which makes it easier for an accountant or a financial analyst to prepare the reports of accounts quickly. In addition to that there are numerous add-ons available in both paid and free formats. Aron Govil suggested that using these add ons can also make your work easy while working in excel sheets, especially if you have to prepare professional looking documents with specific layouts etc…
2) Keeping Track Of Historical Data:
The best part about keeping books of accounts in Excel is that it helps you keep track of historical data more easily than MS-Office applications like Word or PowerPoint. Excel offers some great features like Pivot Tables and Charts that can be used to track the data trends over a period of time quite easily.
3) More Organized:
When you keep your books of accounts in MS-Excel, it becomes more organized and manageable as compared to MS-Word. The columns and rows in an Excel sheet make it easy for you to store data in a systematic way. This also makes it easier for you to find specific data when you need it.
4) Better Compatibility with Other Applications:
One of the main advantages of keeping your books of accounts in Excel is that it is more compatible with other software applications, especially financial analysis software. This allows you to quickly and easily import data from your Excel sheet into other software applications for further analysis.
The best thing about keeping books of accounts in Excel is that it makes the data portable. You can easily save and email an Excel file to anyone, anywhere in the world. This also helps you keep a backup of all your data quite easily.
So, these were some of the top reasons why you should keep your books of accounts in Excel. If you are still not sure whether to use Excel or Word for book keeping purposes, then we suggest you try out both applications and see which one works better for you. We are sure that after using both applications, you will find that using Excel for book keeping is a lot easier and convenient than using MS-Word.
1) How to Prepare an Income Statement Using Excel?
You can easily prepare an income statement using excel
2) How to Prepare a Balance Sheet Using Excel?
You can easily prepare a balance sheet using excel
3) How to Prepare a Cash Flow Statement Using Excel?
You can easily prepare a cash flow statement using excel
4) Do I Need Any Form Of Specialized Training For Preparing Income Statements Using Excel?
There is no need for any specialized training for preparing an income statement using excels. You can easily do it by following the steps mentioned in this blog post.
5) How Many Types Of Accounts Can I Maintain In Excel?
You can maintain as many types accounts in excel as you want. However, if you are maintaining your records manually then it would be better if you keep only those accounts that are related to your business and ignore the rest. This will help you save a lot of time and effort while doing book keeping tasks using MS-Excel or MS-Office applications like Word and PowerPoint.
6) If I Decide To Go Back To Pen And Paper Method, What Are The Challenges That I Will Face?
If you decide to go back to the pen and paper method, you will face a few challenges like the lack of portability and organization. In addition to that, it would also be difficult for you to track historical data using this method. So, if you are looking for an easier and more convenient way to do your book keeping tasks then we suggest you use MS-Excel or any other software application that is compatible with Excel.
Conclusion by Aron Govil:
Considering all the above mentioned points, we can safely conclude that people who own small and medium sized businesses should consider using MS Excel for their book keeping purposes. However, if you are still not sure whether to choose Excel or Word for your book keeping needs then we suggest you try out both applications and then decide which one is better suited for your business. We hope this blog post has been useful to you. If yes, do let us know by commenting below!