Accounting Software: Moving Away from Spreadsheets

Posted by: admin
Category: Business in Asia
Accounting Software Moving Away from Spreadsheets

Since the first entries of debit and credit, accounting and other business processes have benefited the world’s economies in many ways. The accounting process has evolved immensely throughout the years. From ledgers upon ledgers of accounting books piled high in storage rooms to the gradual automation employing spreadsheets, and further to accounting software, the innovations seem to be endless!

Take a look at our previous article Automation of Business Accounting Processes

However, while the transition to accounting and management software has been beneficial to those who embraced the change, those who are still making use of spreadsheets may still be confused whether their businesses require a shift from spreadsheets to accounting (and/or management software).

Tell-tale signs that you need to shift to accounting software

Job progress visibility is blurred, at best.

Transparency of spreadsheet data input, transactions entry, and editing history is not as defined in using mere spreadsheets. In many instances, the management or other users may want to know which user was accountable for certain transactions, this is what we call an audit trail. To be considered as such, the record is supposed to be step-by-step data that traces the transaction to its source. Without such a verification and tracking system, it will be difficult to trace which user was responsible for certain entries.

Multiple versions of the same data are used by your team.

It is common practice for spreadsheet users to submit the soft copy to colleagues or immediate supervisors. However, when further editing is required, which copy would then have to be edited to reflect current changes? Usually, a company is left with multiple copies of the document, with different levels of editing and update or multiple versions. Version 1 maybe with the accountant but the supervisor might already be editing version 2 while the accountant may also be updating his or her copy and renaming it version 2 as well. Data loss is very common in these scenarios. Despite some spreadsheet programs’ features of multiple sharing or real-time collaboration, it usually renders the document slow in processing and inconvenient.

Decision-making cannot be made or is delayed because of the data available.

Accounting Data in spreadsheets is raw in terms of decision making. Further analysis is needed for useful information to be gleaned from them. Financial information such as ratios, budgets, forecasts, graphs, etc. is needed or preferred by decision-makers. Conversion of financial data to such information and further analysis takes time. However, one contributing factor to efficient business performance is the timeliness of the effects of its benefits. By making use of accounting software, this financial information is usually a click away since the software would extract the data entered and convert them to useful information automatically. Hence, decision-making time can be done immediately.

Several clerical errors come up every time.

In a survey, it was concluded that the majority of spreadsheets have errors. In other words, in large spreadsheets entered by users manually with thousands of formulas, several undetected errors may come up. By making use of accounting software, there will be almost no need to manually enter formulas. The company may save time, money, and stress on having less data error from human error.

Repetitive processes’ forms are not uniform.

Accounting and management software standardizes the business’ way to track time, tasks, costs, etc. In contrast to that, manual input in spreadsheets is a less standardized version of that. Employee leaves, expense reports, invoices, etc. may come up now and then and the approval of such may take time especially if managers still need to decipher changing formats and templates every time. By making use of accounting systems with functions applicable to your business processes, all these tasks can be accomplished easier.

There is a high labor requirement for less work.

Although the automation of business processes and other improvements are not meant to replace all of the workforces, some mundane tasks may be taken care of more efficiently. Accountants may then be left with tasks involving the deeper analysis and other higher-value duties.

The transition from spreadsheet to accounting software

During the transition, aside from migrating and merging all existing data, the spreadsheets previously used should not be immediately discarded. On the contrary, it should be continued to be simultaneously used together with the accounting system data entry for backup purposes and to ensure users are entering information to the new system correctly, at least only for the full accounting cycle/period. By doing so, management could see if the users can provide the same basic information to the new system when checked against an old system that the company has since been used to using. Moreover, users of the new accounting system should focus on learning basic functions that would enable them to confidently explore and learn the system on their own. In other words, advanced features should be adopted slowly to lessen user or manual errors in the data. With training and support from the system’s developers, frequent usage of the software may then be promoted frequently to the company and its users.

Kwikdroid – digital accounting software

Kwikdroid is accounting software that standardizes, automates, and optimizes all the daily accounting and business management operations of your company in China. With its dashboard, a user can have a real-time overview of the company including invoices, leaves, expenses, and purchases. The system is linked to an SJGrand Certified Accountant via the messaging and approval systems that can aid the user, especially during the transition period. Kwikdroid’s OCR and AI technologies will take care of the easier data entry process. By uploading a photo of a Fapiao or applicable source document from your phone, the system automatically picks up the appropriate data and stores it in the right place. All these and more may be made available at your convenience; since Kwikdroid is cloud-based, users can access all its functions from any device, anywhere, and anytime.

Conclusion

When processes are around for so long sometimes it is hard to let go of them. Spreadsheets have been around for quite some time and a lot of bookkeepers, accountants, auditors, and even decision-makers are still reluctant to make the change. However, numerous companies have been adopting accounting software for several reasons. Aside from it is an obvious move towards automation, development, and improvement, it is also the right thing to do. No business is too simple for accounting software. No matter if you are still manually filling up paper spreadsheets or using computer spreadsheet programs, there is an accounting software applicable to your business’ needs.

Contact us

S.J. Grand provides advisory on setting up a business in China. We put our competent team at your service to give you the most effective China market entry and tax optimization strategy.  Contact us to get you started.

Moreover, we have been at the forefront of promoting full automation of business operations, especially for startups and SMEs. We have introduced our Cloud-based advanced solution, Kwikdroid, to make business transactions easier with us, no matter what type or size of the company. Visit our Kwikdroid page to learn more about the services we offer.

 

kwikdroid

You may be interested to read about how to manage your company remotely using the advantages of Kwikdroid. Check it out!

Follow us on social media to receive the latest updates:

sj grand wecaht mini program

See how much salary you receive after tax and check your company value without leaving WeChat! Also, our Mini Program can estimate the salary in your industry, for your experience level and position. A huge help for salary negotiations!

Scan the QR code now to use our free calculators!

Author: admin

Leave a Reply