Spreadsheets are good accounting tools in a lot of aspects because of they are reasonably user friendly and can be made as complex or as simple as the user wants. When using them for bank reconciliations and to track cash inflows and outflows spreadsheets are extremely useful.
Performing a bank reconciliation is a process that is used to explain the difference between the bank balance that is shown in an organization's bank statement, as supplied by the bank, and the corresponding amount shown at a particular point in time in the organization's own accounting records. Any differences that do occur may be due to banking transactions that have not yet been recorded by the organization, cheques that have not yet cleared or errors made by the bank or organization. Spreadsheets allow these details to be updated and edited easily and labelled in a way that makes it simple to look back at the data should any confusion occur at a later date. Information that is inputted into a spreadsheet with all of the financial transaction details can be used to compare to a bank statement when it arrives. Any discrepancies in the total amount can be searched for quickly and pinpointed exactly. Providing that the spreadsheet has been kept up to date and accurate it will be obvious if the difference is an error or not.
Spreadsheets are also good accounting tools when used to track cash inflows and outflows. Money coming in and out of an organization can be kept in a big database so that any expenses or incomes that need to be checked or verified can be found in an instant. The complex equations that can be calculated with a spreadsheet allow companies to work out budgets, average spends and any taxes that need paying, to name but a few functions, with all of the data that is available in front of them.
Performing a bank reconciliation is a process that is used to explain the difference between the bank balance that is shown in an organization's bank statement, as supplied by the bank, and the corresponding amount shown at a particular point in time in the organization's own accounting records. Any differences that do occur may be due to banking transactions that have not yet been recorded by the organization, cheques that have not yet cleared or errors made by the bank or organization. Spreadsheets allow these details to be updated and edited easily and labelled in a way that makes it simple to look back at the data should any confusion occur at a later date. Information that is inputted into a spreadsheet with all of the financial transaction details can be used to compare to a bank statement when it arrives. Any discrepancies in the total amount can be searched for quickly and pinpointed exactly. Providing that the spreadsheet has been kept up to date and accurate it will be obvious if the difference is an error or not.
Spreadsheets are also good accounting tools when used to track cash inflows and outflows. Money coming in and out of an organization can be kept in a big database so that any expenses or incomes that need to be checked or verified can be found in an instant. The complex equations that can be calculated with a spreadsheet allow companies to work out budgets, average spends and any taxes that need paying, to name but a few functions, with all of the data that is available in front of them.
