Accounting Spreadsheet: Advantages and Templates
You should be prepared if you are planning to delve into investment. It is a world full of number that you might not fully understand. Everyone would ask if you have accounting spreadsheet on hand when you are planning to invest. What is the use of such spreadsheet? What are the advantages of having it for your business activities? You will learn the answer to that as well as examples of template that you can use.
How important is the Spreadsheet?
Being prepared with the accounting aspect of your finance is important if you are going to do serious business like investment. It aids you in keeping accurate information about your financial situation. You are dwelling with significant amount of money so you always want to be kept on the right track. Thus having a fully functioning spreadsheet is really crucial.
Advantages of Having a Spreadsheet for Accounting Purpose
- Knowing the Account Balance
Some small business owners will provide a bizarre answer to you when they are asked about their business’ account balance. It is because they do not have accounting spreadsheet that is reliable. Thus, if you are having the spreadsheet, you will be able to decide whether you are making money or instead facing loss in your business.
- Tracking Income and Outcome
As an investor, whether to a business or capital, you will need to be able to track the income and outcome of your investment. You need to know how much you make at a certain time and where do your incomes come from. You also need to know what the expenses that you pay. It is done so that the business can be developed.
- Accurate Calculation
Accounting spreadsheet also provides accurate calculation for the financial side of your investment. You can use various data processing programs to ensure that you are not making any calculation mistake. Accurate calculation will help you knowing the actual running of your business better. If your calculation is not accurate, you will face various issues such as taxes.
- Easy to be Updated and Customized
When you have a spreadsheet for accounting, you can easily update your financial data. The updating process can be done regularly. In addition to that, you should also find template that can easily be customized in order to fit the need of your business.
Samples of Template
An example of template is for farming business. In this template, you are calculating the expenses that go into the farming. It includes fertilizer, seeds, labors, etc. After that, you are counting your yields per certain area size. Then, you will need to calculate how much you are selling the crop based on your spending and estimated distribution cost. You can then calculate how much you are making from selling the crop.
Another accounting spreadsheet example is the one where you list all expenses and incomes that happen in a year. You will deduct the expenses from incomes and at the end of the year, you will be able to see your balance.