There’s no denying that some things naturally seem to fit together: cookies and cream, music and lyrics and, of course, accountants and spreadsheets. For decades, spreadsheets have been the staple tool and backbone of the finance and accounting industry.
Yes, a spreadsheet may seem like a good solution: it’s free, and the level of familiarity is high—but it’s important to note that we are already in the age of comprehensive and real-time reporting. Likewise, your role as an accountant for business owners and modern SME company firms has already transitioned from just being in charge of recording financial transactions to being a more valued advisor and strategic partner. That said, relying on outdated tools such as spreadsheets is not a good idea anymore as it poses a handful of challenges and drawbacks.
This blog post will discuss some of the common issues you face when using spreadsheets for accounting and why it is better to start using a fast, automated, and modern cash flow tool like Moolahmore to manage your workflow and serve your clients better. Let’s begin.
Downsides of Spreadsheets in Accounting and Financial Management
Spreadsheets are clumsy, very uncoordinated, and a hassle to utilise—you will still need to set up your own file hierarchy. Moreover, it’s also difficult to share data between various sheets and even more challenging to get the spreadsheet to consolidate with data stored in other applications.
No Automation = Time-Consuming & Highly Manual Process
Even with formulas—in spreadsheets, you must manually enter, re-enter, validate, correct and update your data. That takes a lot of time to process and a struggle to manage compared to a cash flow tool, where everything is automated, and you can easily view, analyse and update your financial data in real-time to ensure accuracy. Additionally, with spreadsheets, if you miss one correction or do not update a single formula, all your data will be flawed.
Likelihood of Errors is Greater
The likelihood of accounting errors being present in a spreadsheet is high. These errors can come from many areas – they could stem from incorrect input, formula entry, wrong format and non-functioning or broken links. Thus, besides the fact that correcting errors in spreadsheets takes a lot of time since you can only do it manually, spotting these errors beforehand is also challenging.
Remember that high levels of data inaccuracy in accounting can lead to serious financial repercussions. For instance, due to the excel copy-and-paste error, the banking and financial services holding company JP Morgan was hit with a $6 billion trading loss in 2012.
No Real-Time Process
Since spreadsheets do not provide the ability to track and check the whole transaction matching process in real-time nor handle it in one place – you won’t be able to pinpoint process inefficiencies and eradicate costly, congested and time-consuming audits.
One of the many headaches associated with spreadsheets is data load. When there are too many formulas, data and the like, spreadsheets can easily crash. And that’s why using a spreadsheet may not be enough if you’re a big company with large data sets.
Lack of Collaboration
Excel is not open to real-time collaborations and editing. This can lead to a situation where vital details go unchecked, or multiple versions of documents exist without any clear indication of which one is up-to-date and accurate. Hence, this can also hamper your efficiency and accuracy as an accountant when dealing with large data sets.
Mostly, if you use spreadsheets for accounting, you directly save the data to your computers. Unfortunately, that’s extremely outdated and unsecured and can cause multiple problems for you, your team and your clients. Firstly, if someone hacks into your computer, they can easily access the spreadsheet you’re working on since there are no user rules, internal controls and passwords. Then, all of your clients’ crucial accounting information and private financial details are at risk of being exposed.
5 Reasons Why Using Moolahmore App is Better Than Spreadsheets
1) Simple, Intuitive & User-Friendly Interface
Compared to a complicated spreadsheet, Moolahmore’s simple, intuitive and user-friendly interface provides you with a smooth accounting experience. This cash flow tool does the heavy lifting for you. That way, you can efficiently work on your tasks and confidently manage your client’s finances.
2) Richer Reporting and Analysis: See the Detail Behind the Numbers
A significant part of any client-accountant relationship is giving them accurate reports and valuable insights regarding their cash flows. Thankfully, Moolahmore can help you do that.
With Moolahmore, it’s super easy to monitor and analyse your clients’ ingoings, outgoings and cash positions in real-time. On top of that, you can also utilise Moolahmore’s comprehensive what-if scenario builders with a comparative analysis to explore and compare various opportunities and risks. With that information, you can generate the best strategies, approaches and recommendations for them.
After all, better visibility contributes to better reporting. And better reporting leads to better decision-making.
3) Fast & Automated Process: Helps You Save Time!
Accounting and business go hand in hand. That’s why you need a fast and automated cash flow management software, Moolahmore, to help you maximise your productivity levels without compromising the quality of your accounting outputs.
So aside from making data entry easier for you, Moolahmore also offers seamless data integration with other accounting software such as Xero, Quickbooks and MYOB. What’s more, it also renders the easiest way to produce detailed financial reports in a snap, which you can download in PDF or CSV formats.
4) Highly Secure
In contrast to spreadsheets, with Moolahmore, you’re sure to get the highest security level for all your accounts and data. This app comes with advanced encryption and industry-leading security protocols, helping to safeguard your clients’ financial information from prying eyes and unauthorised access such as theft and cyber-attack. Besides, Moolahmore’s databases and servers are hosted in the cloud.
5) Accessible & Convenient
Moolahmore can run on multiple devices: mobile, tablet, and desktop. Plus, it’s available for both iOS and Android operating systems – so no matter what type of device you’re using, you can get the same quality user experience. With this cash flow app, you’ll be able to collaborate effortlessly with your team and clients, keep track of your accounting reports and make necessary adjustments in a fraction of the time and on the go.
Moolahmore is a clear winner that makes accounting easier, faster, more secure, and more efficient. With this cash flow tool, you’ll be able to deliver excellent service, build trusting relationships with your clients and keep them coming back for more!
Leave the complicated spreadsheets behind! When it comes to streamlining your accounting operations and exceeding your clients’ expectations, nothing beats the Moolahmore cash flow app. Schedule a demo today!