Why the Spreadsheet Is the Best Companion for Those Just Starting Their Own Business

Posted on Finance   /   06 Dec 2017   /   No comments

If you’re looking at becoming self-employed, freelance or a small start-up, you’ll no doubt have been considering several options to keep track of and record your financial information.

For anybody thinking about taking this wonderful step, I can’t stress enough the importance of considering your basic accounts and bookkeeping in those very early stages. This means looking at how you will keep track of the ins and outs of your venture once you become established.

There’s no getting away from bookkeeping and finances, so the trick here is to make them a priority as soon as you know you will be venturing out into business for yourself and find a method that is simplistic but workable to get you started. The best way to begin here is to start with a simple spreadsheet.

What You Can Do with A Spreadsheet

I am a massive fan of spreadsheets, regardless of the number of accountancy packages on the market, because they require you to get involved. Therefore, as well as inputting your financial records every week, you’re more likely to have a good idea of your financial position each time you open your spreadsheet, which can only mean good things for your business.

If you are beginning small, a spreadsheet is the better option, rather than an expensive and complicated software package. This is because you will most likely only have a couple of transactions each week at this stage and will not, therefore, need all the extras that come with such software.

Using a Spreadsheet for Your Finances, You Can:

  • Input all sales and purchase invoices
  • Plan for the month ahead
  • Reconcile your bank statement on a regular basis
  • Keep tabs of your customers
  • Keep tabs of your suppliers
  • Keep an eye on your cash flow status

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