How to Make Your Bookkeeping Easy with Excel -1
Everybody uses Excel and we feel it is so easy to add your income and expenses together by category. However, is that bookkeeping? Probably yes, if you only hold a sole proprietorship business and the only thing you need to do is adding up things line by line. However, it may not be efficient, as your bank statements and your receipts don't go that way. You may find yourself switching from worksheet to worksheet all the time and it takes time. Also, when you are required to provide supporting document to a specific transaction, you may totally lose your clue where to find it and how it was paid unless you organized all the receipts perfectly.
As for corporations, it will be in a totally different situation. Unlike sole proprietorship, you have to provide balance sheet information as well, so double entry system is required. I believe some of you can be very good at Excel, but that might just help you to make things more complicated instead of making things easier. Your bookkeeper or accountant will have to Make your balance sheet without a supporting General Ledger.
You then have two choices, go for an accounting software or continue with your Excel (normally with a template from your accountant, however I bet that template doesn't provide everything you need and you will have to maintain many many pages).
Now let's go back to my simple solutions for your small business.
Will continue tomorrow...