Spreadsheets in accounting – this is mainly for bookkeepers and accountants but CEOs and MDs might recognise some of the road blocks and I suspect the points raised might apply equally well to sales, marketing, operations and HR.
To be clear, I come to praise spreadsheets not to bury them – but you may not have the balance right. So let’s begin where bookkeepers and accountants should always begin.
Accounting software.
Your accounting software should be capable of generating the overwhelming majority of the reports your business needs.
Produce those reports, share them, make sure they are understood and used to improve business performance.
Listen to feedback – sunlight is the best disinfectant – and if improvements to the reports can be made then make them.
But!
Choose the right accounting software because some of the popular packages are simply rubbish at producing reports. You might need to change software.
Get proper training on your accounting software – particularly around reporting! (we can help you with QuickBooks, or Xero)
Produce your sales invoices in your accounting software or CRM software – but not in a spreadsheet!
Work backwards from the reports you need to make sure your data entry of transactions is going to feed nicely into your reports.
Build a chart of accounts that is right for your business and build it to last – see related links below.
Make sure your bookkeeping is complete, accurate and up-to-date.
=> The opposite of “Garbage In – Garbage Out”
Accounting software isn’t infinitely flexible and some reports will need to be created in a spreadsheet where tools such as pivot tables and lookup formulas can be brought into play.
Also, you may need to combine data from your finance system with data from other sources and from other areas of your business. In which case:
Make sure data that should be the same IS the same!
For example, if you have customer numbers make very sure that the sales and marketing teams have exactly the same customer numbers for each customer record as the finance team.
Pivot tables pivot around common data – there’s a clue in the title.
If you get your data cleaning right then you can generate very powerful and valuable insights by combining data from different data sources.
But inconsistent data will hold back your business in a very significant way.
There’s a time and place for spreadsheets but learn how to use them well.
A good first principle is to assume that other people will be the audience or users of your spreadsheet and that they will either print it or save it as a PDF. Straight away this means you have to build spreadsheets in a simple and well-structured way with a focus on clear outputs.
This is a blog and not a spreadsheet tutorial (you can find lots of them on YouTube) so I’m not going to go into depth on the tools and formulas you might utilise but here are my top ten tips to get you started:
There are many other hints, tips and online tutorials that will get you using spreadsheets better and don’t overlook getting someone in to do some training across your business.
To summarise:
I think these ideas can be applied across your business. Think of sales management software, CRM systems, HR and other applications.
Are you getting everything you need from the main system or are you over-reliant on spreadsheets?
We do a lot of work with businesses to help them improve the quality of financial information and this is one area we frequently take a look at.
Let’s have a free-of-charge chat about your business – call Michael Austin on 020 7125 0270 or email info@bluedotconsulting.co.uk
Michael – @bluedotmichael
Related links:
Build a useful Xero chart of accounts
Why don’t businesses make better use of accounting software?
Chartered Accountants – Bedford House, Fulham Green, London, SW6 3JW
We don’t believe in forms, we believe in talking to people, finding out your needs and tailor-making a solution just for you.
Give us a ring on 020 7125 0270 or email us at info@bluedotconsulting.co.uk
“Michael and the Blue Dot team have been an essential part of our journey from startup through to being an established company, and we look forward to continuing working together long into the future. They have always been on hand to offer support and sound advice whenever it is needed.”
“Blue Dot have been our accountants and bookkeepers since the very beginning of our business, and have been nothing short of outstanding throughout.”
“Blue Dot Consulting went above and beyond in helping us navigate not only the transition to cloud-based accounting but also in leading our accounts team through a broader period of transformation.
Their deep understanding of our unique needs and challenges was evident from the outset. They provided unwavering support to our team, ensuring they felt confident and well-prepared for the changes ahead.”
“Thank you again for your help and training so far – it’s honestly been invaluable.”
“I’m no expert but it has been transformative the help and advice I get from Michael and his team.
Michael was fantastic. He quizzed me on how my business worked financially and was super patient with me. Explaining everything in a non-accountancy manner. He then showed me how to utilise all the less obvious tools in the program, which he continues to do, so that I can see immediately what monies held belonged to my company and what is held for clients. I now do my own VAT returns and payroll because of his help and continued support.”
“I really enjoy working with Blue Dot Consulting — they’ve helped me take control of our financial situation in a practical, no-nonsense way.
They take a common-sense approach and, most importantly, they get things done. For example, we now have weekly planning and forecasting calls, along with monthly cash flow reviews using simple, easy-to-understand spreadsheets.
Their support has made a huge difference in how we manage and plan for the future.”
“As the business owner, it can get lonely making all the decisions. I feel I have a ‘silent FD’ that I can call, challenge and that any idea is OK to discuss, and to arrive at a sensible way forward.”
“Having someone in the room that is happy to (in a structured way) challenge the norm and not simply accept that, because things look good, we should stop looking to improve.”
“Blue Dot are uncompromisingly systematic and thorough so that you can get on with running your business.”
“Outstanding service and support. They get things done, just what you need. Recommended.”
“It was the genuine level of care and interest in what we do as a business.
The regular check-ins and the effort to ensure the systems they’ve implemented are working for everyone stood out.
It felt like more than just a service, it was a partnership.”
“I’ve been delighted with both the service and expert advice I’ve received from Michael and his team. They take the weight off my shoulders when it comes to my business’s financial requirements, allowing me to focus on building and managing the company.”
“We are a small organisation with no in-house financial expertise, so it’s a huge weight off my mind knowing that I can rely on Michael and his team to take care of everything.”
“I can wholeheartedly and highly recommend Michael and his team at Blue Dot as an exceptional accounting firm. They put my mind at rest knowing I am in excellent hands.”
“Michael and the team are my saviours. Always helpful, approachable and reliable. They show an interest in my business and give excellent advice and recommendations. Above all, they are highly likeable and fun to work with.”
“They went above and beyond in helping us navigate not only the transition to cloud-based accounting but also in leading our accounts team through a broader period of transformation.”
“You guys are brilliant. It’s been a challenging few weeks facing up to the issues but I do feel positive towards them now and I feel a weight has lifted from my shoulders. I am honestly so thankful!”
“I was a little apprehensive about working with a new accountant but I didn’t need to worry – I have found their approach to be friendly, genuine and they go above & beyond to help.”
“Michael’s straightforward, practical and tailor-made approach was perfect for me and our business.”
“Blue Dot have been our accountants and bookkeepers since the very beginning of our business, and have been nothing short of outstanding throughout.”
