5 Ways to Use Excel for Tiny Company Accounting

Accountants are recognised for putting on pocket protectors and expending their times functioning in Microsoft Excel. I can vouch for the latter stereotype.

a person sitting at a desk in front of a laptop computer: Businesswoman analyzing spreadsheets on computer

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Businesswoman analyzing spreadsheets on laptop

Numerous smaller enterprises swear by Excel for all of their bookkeeping desires. Whilst accounting software has its put in each and every company, you can benefit from introducing Excel into your lifestyle.

3 positive aspects of working with Excel for accounting

Excel is a strong tool that can enable any one functioning with figures.

1. Streamlined info entry

I’m not getting anything at all absent from the ease of use that is become normal in compact organization accounting program, but you’d be difficult-pressed to uncover a program far better suited to mass information entry than Excel.

Excel energy users know that macros can churn out hours of a human’s do the job in times. Company homeowners can produce macros to automate responsibilities, these types of as formatting, filtering, and functioning essential evaluation.

You really don’t have to have to know how to set up macros to benefit from Excel’s functionality. As we’ll take a look at under, Excel continues to be a single of the finest means to import huge transaction datasets into your accounting software.

2. Visible financial analysis

Economic examination doesn’t have to be a listing of accounting ratios that evaluate your company’s profitability. If you’re a visible learner, use Excel to develop pie charts that demonstrate in which your business’s funds is going.

Nonprofit annual studies usually use visual aids to talk where by they spend their money. For-earnings firms may well put together equivalent studies when pitching buyers.

3. Uncomplicated sharing

Excel is the common forex of accounting. When you need to have to share financial knowledge with a loan company or investor, you will want to deliver them possibly a PDF or Excel file.

3 most beneficial attributes for Excel tiny organization accounting

I could go on for eons about the Excel attributes that tiny businesses can leverage for accounting. Here are my 3 favorites.

1. Templates

Microsoft has thousands of no cost Excel templates on its internet site. Rather than obtaining to style your have invoices and expense experiences from scratch, you can download and tweak anyone else’s generation.

Templates are useful for individuals who are not comfortable navigating Excel or have not yet aced Accounting 101. Building your own accounting templates necessitates 100% precision if one particular mobile isn’t performing appropriately, you may well wind up with glitches in your accounting documents. Templates are plug-and-enjoy with pre-loaded formulas.

2. Formulation

Excel formulas substantially speed up business enterprise price tracking and analysis.

Say you are on the lookout at the lender assertion below and want to know how a great deal the business used on inventory buys. Rather than incorporating up a list of the applicable fees utilizing a calculator, you can use the “SUMIF” system, instructing it only to incorporate costs marked as stock buys.

table: An Excel spreadsheet shows a SUMIF formula.

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An Excel spreadsheet reveals a SUMIF formula.

You can locate the significant library of Excel functions by clicking on the formula button at the prime of any Excel webpage. It will provide up a aspect panel where by you can look for and learn how to use the functionality.

graphical user interface, table: A Microsoft Excel window with the formula button boxed in red.

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A Microsoft Excel window with the formulation button boxed in red.

3. PivotTables

I have saved the very best for past. PivotTables, the most strong Excel characteristic, reorganizes details to present it much more logically. Accountants use the resource to course of action bank statements and other fiscal info.

For instance, bank statements normally record transactions chronologically, which doesn’t help you fully grasp the place your funds went that thirty day period.

I built a PivotTable down below to categorize earnings and costs on the adjacent financial institution statement. It collapsed the buy and inventory transactions into a person line to delineate how a great deal the corporation earned in profits and invested on stock buys. The total row reflects the company’s web revenue for the month.

graphical user interface, application, table, Excel: A PivotTable lists the categories in a bank statement.

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A PivotTable lists the groups in a lender assertion.

The illustration reveals just a month’s truly worth of transactions, but visualize your spreadsheet lists of transactions for an whole yr. You could use a PivotTable to individual your transactions by month to better understand your company’s funds flow. That would just take several hours by hand, but it’s only moments with PivotTables.

How to use Excel for your small organization accounting requirements

Excel can assist you with a great number of areas of your little small business accounting. Here’s how I have used Excel as an accountant.


Whilst numerous accounting software package platforms have budgeting capabilities, I’d select Excel each time.

Start your organization spending budget by exporting an earnings assertion from your accounting computer software to Excel. Distinct out the figures and increase columns for just about every thirty day period of the period for which you’re budgeting. Then begin entering your budgeted figures and voila! You have a funds.

As your business’s finances get much more involved, you can create granular sub-budgets that roll up into your business’s master spending plan. Excel can take care of it.


If your accounting computer software doesn’t have an invoicing aspect, you can simply make experienced costs by way of Excel.

Microsoft Phrase also has bill templates, but I would not recommend using them because Phrase templates just cannot do any arithmetic for you. Excel invoice templates quickly sum invoice line items, reducing the hazard of human mistake. You wouldn’t want to be responsible for underbilling a client for the reason that of an arithmetic blunder.

Cost reviews

Each time you reimburse an personnel for mileage or an additional company price, you should inquire for receipts and an cost report that tallies all expenses in one doc. There are hundreds of expenditure report templates to opt for from on the net.

Accounts receivable and accounts payable

Lots of smaller organizations track who owes them and whom they owe with an Excel spreadsheet.

Corporations on the income accounting technique only file profits and expenses when dollars arrives in or out. Excel is the excellent repository for a record of fantastic shopper invoices and your business’s unpaid bills considering that they have no put in your accounting data until eventually dollars improvements fingers.

Accrual-foundation organizations file receivables and payables in their accounting program when they generate revenue and incur expenditures, respectively. They shouldn’t have to have to track their receivables and payables any where else.

Lender reconciliations

Financial institution reconciliations, one of the bookkeeping basics, look at your company’s accounting information with its bank statements. You can set the two facet by aspect in Excel and rapidly scrutinize any discrepancies.

Lots of accounting software package answers have bank reconciliation applications, but I desire to use Excel to perform month to month reconciliations simply because of its no-frills interface. Commence the financial institution reconciliation by downloading Excel versions of your company’s typical ledger and financial institution assertion. Then, duplicate and paste the information into one particular spreadsheet and begin reconciling.

3 most effective tactics when employing Excel accounting software program

Keep away from developing far more do the job for oneself by adhering to these very best methods.

1. Let formulation do the perform

The very best advice I’ve gained about applying Excel for accounting is to stay clear of “hardcoding” figures every time attainable.

Consider you’re making your company’s spending plan for future calendar year. You plan to pay back all staff the point out least wage of $12 per hour. You later find out that the minimal wage is going up to $15 upcoming 12 months. If you created the price range applying formulas the 1st time, this resolve ought to just take no a lot more than 30 seconds.

Hardcoding a number means getting into an genuine number, not a formulation, into a mobile. The only quantities I hardcoded below are the $12 least wage and the monthly several hours for every single worker. Formulas determine the employees’ every month gross pay out.

graphical user interface, application, table, Excel: A payroll budget shows an employee’s monthly hours multiplied by the minimum wage.

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A payroll funds exhibits an employee’s regular hours multiplied by the least wage.

Bridget’s month-to-month pay back is calculated by multiplying her every month several hours by the point out minimal wage. Experienced I independently multiplied 12 and 30 in every mobile, I would have to redo the entire payroll budget. Many thanks to the system, I can just modify the 12 to a 15, and all the monthly payroll quantities will quickly update.

A bonus suggestion: The greenback indications in the formula “lock” the row and column you’re referencing, so if you copy and paste the formula from a person cell to a further, it will proceed to reference the exact same place alternatively of altering for the new cell’s location.

2. Preserve Excel accounting documents securely

Any where you keep monetary information and facts must be secured by a password that only a privileged few know. Password-safeguard Excel data files with delicate data, this kind of as staff Social Safety figures.

Really don’t forget about to back up information that are not saved in a cloud storage system.

3. Create template files

Save your bill and price report templates as template documents. When you open a template file, it makes a new document that won’t overwrite the first template.

Soon after you obtain and tweak your expenditure report template, click on “Save As Template” and save it to an obtainable area for you and your staff. Any time somebody clicks on the template file, you can be guaranteed they will not inadvertently spoil all your difficult do the job in building it.

Excel with Excel

Excel can be scary at very first, but the emotion fades swiftly. It’s like conference your in-rules for the initially time (ideally).

Get started checking out Excel’s capabilities by downloading an cost report or invoice template and tweaking it to fit your small business. Soon enough, you will get the know-how to employ it far more broadly in your firm.

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