Spreadsheets For Bookkeeping In Logan City

Posted by beancounter in Categories Bookkeeping,MYOB,Quickbooks

Spreadsheets For Bookkeeping In Logan City

Should you use spreadsheets to do the bookkeeping for your Logan City business? There’s no right and wrong answer to this question.

There can be benefits of using spreadsheets to keep track of the bookkeeping in your Logan City business, but there are also some disadvantages. For instance, for a small business owner, using a simple spreadsheet can be a quick easy and economic solution to doing your bookkeeping. Though we’ve seen the mess that people can make when using spreadsheets instead of some of the simple accunting software programs that are available these days

If you don’t know what you are doing, you can quickly become unstuck when it comes to bookkeeping using a spreadsheet. The beauty about using spreadsheets is that you can create little formulas in the cells to give you the answers that you are needing.

Many small business owners do not know or understand the full potential of using spreadsheets to do their bookkeeping.

Unless you’ve set your spreadsheets up correctly, there may not be any checks in place to identify where errors may be occurring. This can be an advantage when using accounting software packages such as Quickbooks or MYOB where the reporting process has already been set up. At the push of a button you can run a number of reports that will quickly highlight where any errors may be in your data entry.

You may think that little can go wrong when using spreadsheets to do your bookkeeping. And that’s exactly what happened to the Columbia Housing Authority in the USA a few years ago.

When a Government audit was undertaken, the Columbia Housing Authority eneded up having to pay $216,352 to cover expenses incurred when the authority gave some tenants too much room and some landlords too much rent. They admitted to $118,387, the amount that resulted from a spreadsheet data-entry error that overpaid landlords.

The Nevada city budget spreadsheet apparently worked correctly until sometime in late December 2005 when it developed a problem, causing the 2006 budget to show a $5 million deficit in the water and sewer fund.

There’s so many examples of what can go wrong with using spreadsheets to do the bookkeeping for your Logan City business, and in so many instances the errors are not discovered until it’s too late and the damage has been done