Most startup businesses use spreadsheets for account management before migrating to the more advanced management programs. Spreadsheets are easy to use and accessible to anyone with a computer. There are even account management apps for mobile phones. Although spreadsheets are sufficient for bookkeeping at the start, it becomes necessary for the business to use an account manager app as it expands. A spreadsheet is simple and easy to use and are customizable to suit the needs of the business. Moreover, the system can automatically update itself upon data entry, provided the appropriate structure is developed first. Knowing how to start a spreadsheet for account management is important for small business owners. The guidelines outlined below can help in getting started.
The business owner has unlimited options in choosing an account manager app for their business. While some spreadsheet programs are free, others require the user to pay to access their premium features. Owners of small and medium-sized businesses might only need the features offered by the free spreadsheet options. These present a good opportunity to test and sample them before committing to a paid option so as to avoid paying for a program that may not work for the business. It might even be necessary to try out several of them before settling on the most suitable one. Free account manager apps, however may be limited in the scope and range of features they offer users. That is why it might be good to upgrade to a paid one as soon as the firm begins expanding.
The good thing about spreadsheets is that they can be customized to suit the needs of a particular business. With limitless customization options like the ability to change color and size of rows and columns, input the business logo and letterhead, spreadsheets are great tools for account management. Most account manager apps can create a spreadsheet template from a scratch or provide the option of downloading one from the internet. Most businesses organize their bookkeeping system templates into three separate sheets – the transactions sheet, chart of accounts sheet and an income statement sheet. Business transactions are recorded into the sheets, from which income statements are generated.
Financial data is entered into respective accounts. The income statement, the chart of accounts and the list of transactions are the three basic parts of the account management spreadsheet. These are described below:
The most common account types include income, expense and cost of goods sold. Upon creation and customization of the accounts, the owner needs to enter transaction data into relevant accounts and harmonize them for a summary of the business’s performance. Simple financial literacy skills should make it easy to accomplish this. It is advisable to save the spreadsheet in a secure location on the computer to prevent it falling into the wrong hands.