By now, we understand the numerous advantages of automation and why it might be the right time for you to free yourself from manual business processes. We are well aware of how Tally accounting software and robust ERP software can benefit small businesses. It’s heartening to see that small businesses across the country are recognizing the benefits of digital business systems. When it comes to automation, two common approaches are often used: spreadsheets and software. While spreadsheets are a popular choice for many small businesses to initiate the transition to digital record-keeping, as a business grows and its operations become more complex, managing a multitude of spreadsheets can become increasingly challenging.
In this blog post, we aim to explain why you may need to move away from the complexity of spreadsheets and explore more efficient alternatives, such as Tally accounting software, to streamline your business operations:
A software application is better suited for organizational use than a spreadsheet.
Most bookkeeping software solutions have been developed by individuals who possess a comprehensive understanding of various business aspects, including accounting, inventory management, and compliance. As a result, these software products are ready-to-use solutions. For example, bookkeeping software does not require accounting expertise or additional programming; inventory software includes built-in inventory categorization features. In contrast, when using spreadsheets, you must create your own processes, which may or may not be optimal. While basic spreadsheet functions are common, mastering advanced features requires time, experience, and learning. Additionally, the manual data entry, management of multiple worksheets, and complex formula input can be cumbersome.
The software program generates automated reports faster than a spreadsheet.
Business management software efficiently produces comprehensive financial reports because it centralizes and manages financial transactions, eliminating the need for data scattered across various locations. Most importantly, financial accounting software provides real-time access to financial information, giving you insights into your organization’s financial health. In contrast, creating such reports with spreadsheets is challenging, as transaction data is spread across different worksheets, requiring time-consuming manual calculations.
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Accounting software ensures more precise data handling compared to spreadsheets.
One of the significant benefits of small business bookkeeping software, such as Tally accounting software, is that it maintains precise data handling, including automated entries in journals and ledgers, ensuring accurate business information. The system can incorporate checks and measures to simplify data input and reduce potential errors. In contrast, using spreadsheets poses a risk of data entry mistakes, formula errors, accidental changes, or deletions.
A software application streamlines business processes more effectively than a spreadsheet.
Many small business bookkeeping software solutions come with integrated inventory management capabilities. For instance, in a typical trading company, the accounting software serves as both an accounting and inventory management tool. This means that when you record an accounting transaction, you can also easily generate electronic invoices for customers, track payments, manage budgets, and integrate financial records, among other functions. However, if you rely on spreadsheets, you’ll need to maintain separate sheets or systems for various business processes such as invoicing, receiving payments, and resolving transactions.
Accounting software handles compliance more effectively than a spreadsheet.
While some small businesses in the UAE have in-house accountants, others outsource their accounting needs to professional bookkeepers. In terms of compliance, businesses often involve auditors. Auditors need access to financial data for VAT return filing. Using standard business software is more efficient than custom-made spreadsheets for external accountants or auditors. This approach is more convenient for businesses.
The debate between spreadsheets and software is ongoing. Businesses should distinguish between “automated business” and “business conducted on computers.” It’s essential to understand the advantages of digital systems and transition to computerized business management. The right system should align with the business owner’s approach. Given VAT compliance demands, businesses are shifting from spreadsheets to software. They embrace suitable technology for operations.
Cloud Accounting software
With cloud accounting software, you no longer need to rely on accounting professionals to file your VAT return. Modern bookkeeping software is tailored for VAT needs. It ensures that your invoices meet VAT regulations. This simplifies the VAT return filing. The software generates the return file automatically.
Transitions can be challenging. Embracing the latest trends and adopting automated accounting software may require business owners to learn how to use new software. However, this shift is essential for businesses looking to increase their profits, reduce unnecessary complications, and operate with greater efficiency.
We are confident that you must be eager to learn more about cloud accounting.
And, as always, we are here to address any questions you may have regarding cloud accounting or engage in discussions about the fusion of accounting and technology. Don’t hesitate to reach out to us today to discover more about cloud accounting.