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.