5 Methods to Use Excel for Small Organization Accounting

Accountants are regarded for donning pocket protectors and paying their times performing 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 computer

Lots of modest companies swear by Excel for all of their bookkeeping requirements. While accounting software package has its place in every business, you can gain from introducing Excel into your life.

3 added benefits of making use of Excel for accounting

Excel is a highly effective tool that can aid anyone working with figures.

1. Streamlined information entry

I’m not using nearly anything away from the simplicity of use that is come to be conventional in modest business enterprise accounting computer software, but you’d be hard-pressed to find a program improved suited to mass details entry than Excel.

Excel electricity end users know that macros can churn out hours of a human’s function in moments. Company entrepreneurs can generate macros to automate jobs, this kind of as formatting, filtering, and operating primary evaluation.

You really do not have to have to know how to set up macros to advantage from Excel’s features. As we’ll check out beneath, Excel stays one particular of the ideal ways to import significant transaction datasets into your accounting computer software.

2. Visual monetary examination

Financial analysis doesn’t have to be a listing of accounting ratios that assess your company’s profitability. If you’re a visual learner, use Excel to make pie charts that clearly show in which your business’s funds is heading.

Nonprofit once-a-year reviews often use visual aids to communicate where they invest their revenue. For-revenue firms may possibly put together related reports when pitching buyers.

3. Easy sharing

Excel is the common forex of accounting. When you will need to share money facts with a loan company or investor, you will want to deliver them both a PDF or Excel file.

3 most useful options for Excel smaller organization accounting

I could go on for eons about the Excel characteristics that compact companies can leverage for accounting. Listed here are my three favorites.

1. Templates

Microsoft has 1000’s of cost-free Excel templates on its web page. Somewhat than acquiring to structure your possess invoices and price reviews from scratch, you can down load and tweak someone else’s development.

Templates are helpful for all those who aren’t at ease navigating Excel or haven’t nevertheless aced Accounting 101. Creating your very own accounting templates demands 100% precision if a single cell isn’t working accurately, you may wind up with glitches in your accounting documents. Templates are plug-and-participate in with pre-crammed formulas.

2. Formulation

Excel formulas drastically pace up business expense monitoring and evaluation.

Say you are looking at the bank assertion underneath and want to know how considerably the business enterprise put in on stock buys. Alternatively than including up a listing of the applicable bills making use of a calculator, you can use the “SUMIF” formulation, instructing it only to include fees marked as stock buys.

table: An Excel spreadsheet shows a SUMIF formula.

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An Excel spreadsheet shows a SUMIF formulation.

You can obtain the significant library of Excel capabilities by clicking on the method button at the leading of any Excel web page. It will carry up a facet panel exactly where you can lookup and find out how to use the purpose.

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 components button boxed in pink.

3. PivotTables

I’ve saved the ideal for past. PivotTables, the most potent Excel attribute, reorganizes facts to current it additional logically. Accountants use the device to process lender statements and other money info.

For illustration, lender statements generally checklist transactions chronologically, which doesn’t assistance you realize wherever your funds went that month.

I designed a PivotTable under to categorize income and fees on the adjacent financial institution assertion. It collapsed the purchase and inventory transactions into 1 line to delineate how significantly the enterprise attained in income and put in on inventory purchases. The complete row demonstrates the company’s net profits for the thirty day period.

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

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A PivotTable lists the classes in a lender assertion.

The example demonstrates just a month’s well worth of transactions, but picture your spreadsheet lists of transactions for an whole calendar year. You could use a PivotTable to independent your transactions by month to improved understand your company’s income movement. That would consider hrs by hand, but it’s only moments with PivotTables.

How to use Excel for your modest small business accounting requirements

Excel can support you with a great number of elements of your little company accounting. Here’s how I’ve applied Excel as an accountant.


While a lot of accounting software package platforms have budgeting attributes, I’d opt for Excel each and every time.

Begin your company budget by exporting an earnings statement from your accounting program to Excel. Clear out the numbers and incorporate columns for each individual month of the time period for which you are budgeting. Then start off moving into your budgeted numbers and voila! You have a budget.

As your business’s funds get more involved, you can make granular sub-budgets that roll up into your business’s grasp spending budget. Excel can manage it.


If your accounting computer software does not have an invoicing attribute, you can effortlessly produce qualified expenditures by means of Excel.

Microsoft Phrase also has invoice templates, but I would not propose working with them for the reason that Phrase templates simply cannot do any arithmetic for you. Excel invoice templates instantly sum bill line things, lessening the threat of human error. You wouldn’t want to be responsible for underbilling a shopper due to the fact of an arithmetic blunder.

Cost experiences

Every time you reimburse an staff for mileage or another organization cost, you should really inquire for receipts and an expenditure report that tallies all charges in a person doc. There are hundreds of price report templates to decide on from online.

Accounts receivable and accounts payable

A lot of tiny enterprises monitor who owes them and whom they owe with an Excel spreadsheet.

Corporations on the funds accounting system only report profits and charges when revenue arrives in or out. Excel is the perfect repository for a checklist of superb client invoices and your business’s unpaid payments because they have no spot in your accounting data right until income variations palms.

Accrual-basis organizations report receivables and payables in their accounting software package when they make earnings and incur bills, respectively. They shouldn’t need to have to monitor their receivables and payables any place else.

Lender reconciliations

Bank reconciliations, one particular of the bookkeeping fundamental principles, compare your company’s accounting documents with its financial institution statements. You can place both equally aspect by aspect in Excel and immediately scrutinize any discrepancies.

Quite a few accounting software package solutions have lender reconciliation tools, but I like to use Excel to conduct month-to-month reconciliations mainly because of its no-frills interface. Get started the bank reconciliation by downloading Excel versions of your company’s general ledger and bank statement. Then, copy and paste the details into one spreadsheet and commence reconciling.

3 finest methods when employing Excel accounting program

Stay away from producing far more do the job for you by adhering to these finest techniques.

1. Allow formulas do the get the job done

The greatest assistance I have obtained about utilizing Excel for accounting is to prevent “hardcoding” quantities each time doable.

Think about you’re developing your company’s funds for following year. You plan to pay back all workers the state bare minimum wage of $12 for every hour. You later on understand that the minimal wage is heading up to $15 upcoming calendar year. If you made the spending plan making use of formulation the first time, this take care of need to get no additional than 30 seconds.

Hardcoding a quantity implies coming into an true number, not a components, into a mobile. The only figures I hardcoded under are the $12 minimal wage and the every month hours for each worker. Formulation compute 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 budget reveals an employee’s regular monthly hrs multiplied by the bare minimum wage.

Bridget’s month to month pay out is calculated by multiplying her monthly several hours by the state bare minimum wage. Had I individually multiplied 12 and 30 in every single cell, I would have to redo the entire payroll budget. Many thanks to the method, I can simply change the 12 to a 15, and all the every month payroll quantities will instantly update.

A bonus suggestion: The dollar signals in the system “lock” the row and column you’re referencing, so if you duplicate and paste the components from a single mobile to a further, it will carry on to reference the identical location rather of altering for the new cell’s site.

2. Help save Excel accounting files securely

Any where you retail store financial details ought to be secured by a password that only a privileged several know. Password-shield Excel files with delicate information and facts, these as employee Social Protection numbers.

Really do not neglect to back again up information that aren’t stored in a cloud storage program.

3. Produce template information

Save your invoice and price report templates as template files. When you open a template file, it produces a new document that won’t overwrite the unique template.

Following you download and tweak your price report template, click on “Save As Template” and help save it to an accessible place for you and your staff. Any time someone clicks on the template file, you can be positive they won’t inadvertently damage all your really hard operate in producing it.

Excel with Excel

Excel can be overwhelming at initially, but the sensation fades swiftly. It’s like assembly your in-legislation for the initially time (ideally).

Start exploring Excel’s capabilities by downloading an cost report or invoice template and tweaking it to suit your business. Before long plenty of, you are going to achieve the know-how to carry out it a lot more extensively in your enterprise.

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