| Spreadsheets are the accepoted global method of | | | | bookkeeping software. Bookkeeping software can |
| listing and analysing data. Used extensively | | | | be as simple as a home produced spreadsheet |
| throughout the business world bookkeeping | | | | but with additional facets that can have significant |
| spreadsheets and templates can provide the | | | | financial benefits to the business. |
| essential solution to a small business keeping | | | | Bookkeeping software produced on spreadsheets |
| accurate accounts. | | | | would normally be a series of spreadsheets with |
| Every business large and small needs to keep | | | | the columns preset and titled and formulae |
| records of sales income received and purchases | | | | written into the sheet to automatically add up |
| expenditure. It is not sufficient for accounting and | | | | each column. In addition the columns used would |
| taxation purposes for these receipts and | | | | normally be restricted to general headings to |
| payments to be left in the office or the back of a | | | | include a full analysis of all items. |
| van in a carrier bag. At some stage these prime | | | | Small businesses that might produce their own |
| bookkeeping documents need to be processed. | | | | spreadsheet would often do this on an annual |
| Processing the financial documents related to a | | | | basis. Bookkeeping software is much more likely |
| business enterprise basically means they need to | | | | to provide these bookkeeping spreadsheet |
| be listed. For tax calculation purposes and also | | | | templates on a monthly basis to enable a degree |
| accounting control over finances the invoices need | | | | of financial control to be exercised by the small |
| to be added and analsysed. The most basic | | | | business. |
| method would be to simply make a list of the | | | | That is the second real value of bookkeeping |
| sales income and a second list of the purchase | | | | spreadsheets, the ability to provide the business |
| expenses. | | | | with financial information and through that data |
| Using a manual method of listing the information | | | | financial control over the business activities. The |
| falls short of the analysis required and is more | | | | first value is of course the simplicity of listing with |
| time consuming that using a little technology to | | | | automated summation of the figures. |
| both ensure the summation is accurate and the | | | | Professionally produced spreadsheets by an |
| analysis simplified. Listing the sales and expenses | | | | accountant can benefit a small business if they |
| of a small business on spreadsheets is no more | | | | have been prepared on tried and tested |
| difficult then a manual paper system and has | | | | bookkeeping templates and the background |
| tremendous advantages in automating and | | | | software prepared in such a way to produce |
| ensuring accuracy. | | | | accounting information in the fomrat the small |
| Hence the use of bookkeeping spreadsheets to | | | | business requires it. There are two main |
| prepare the accounting information required. | | | | requirements of the way the financial records are |
| Instead of listing the items on a paper list the | | | | analysed being to produce a financial profit and |
| items can be just as easily listed on a | | | | loss account for the business on a periodic basis |
| spreadsheet which will add up the items as | | | | but also to provide the totals of the categories |
| required without the requirement to double check | | | | required for taxation purposes. |
| the adding up is accurate. Such a list has a history | | | | Buying a piece of bookkeeping software written |
| in accounting term as a sales daybook and a | | | | on spreadsheets can thus become an essential |
| purchase daybook | | | | tool for the business. The essential element being |
| To achieve the required analysis of sales and | | | | to both make the accounting simple and easy as |
| purchases all that is required is to write into the | | | | listing items, automated analysis and summation |
| top of each of the spreadsheet columns the titles | | | | assisting the financial control and improved financial |
| of the analysis headings required. Then repeat the | | | | performance while also producing the benefits of |
| value of each transaction in the total column into | | | | being analysed to make the completion of annual |
| the analysis columns. Use the spreadsheet | | | | tax return forms easier. |
| technology to add up each column and you have | | | | Everyone in business wants to make a profit |
| an effective bookkeeping spreadsheet. | | | | making financial control important. Everyone in |
| Preparing such a bookkeeping spreadsheet might | | | | business has to fill in tax forms and submit |
| and often does suffice the needs of the smallest | | | | accounts in the tax authority format. Bookkeeping |
| business enterprise and is a close step towards | | | | spreadsheets provide an essential accounting tool |
| achieving a valuable tool for this purpose, | | | | for every business to achieve these objectives. |