Tips and Tricks for Bookkeeping With Excel Templates

Most business owners are likely to prefer using basic & free software. Like the Freshbooks over Excel for their day-to-day bookkeeping, despite Excel’s apparent ease of use and familiarity.

Every day, you’ll have to maintain track of the company’s revenue. Also, the expenses, reconcile transactions and make sure everything is recorded correctly. Businesses must keep track of their financial transactions through Balance sheet Free, which serves as the foundation for all other accounting procedures.

Using Microsoft Excel for basic bookkeeping is easy, so several templates are available to help you along the way. Hence, to help you get started, we’ll describe how to set up a small company accounting system in Excel. The system’s restrictions, and lastly, how to use Excel to manage your money.

What to Expect When Doing Small Business Bookkeeping in Excel

As you’re just starting and don’t have the money to spend on third-party software. An accounting professional uses Microsoft Excel for small businesses. Bookkeeping sounds like an easy approach to handling your books. Excel can be a useful tool for basic accounting and bookkeeping. But it has several drawbacks when compared to more advanced programs like Freshbooks or Wave.

You ought to be able to do the following while developing an Excel accounting system:

  • Keep track of your “accounts” (the kind of transactions you’ll conduct) in an orderly fashion.
  • Transactions should be entered and classified.
  • You can generate pay stubs (also known as profit and loss statements) by either data transfer from your list of transactions or by using formulas to instantly import them.
  • You can do this either manually or automatically.
  • Keep track of the bills you’ve sent to customers and cross-check them against your recorded transactions.

Read: How Microsoft Excel Helps To Create A Social Media Calendar

Automated accounting software can:

  • Automate the import and sorting of transactions from your business savings accounts or credit cards.
  • Use your bookkeeping data to automatically generate standard financial documents.
  • Notify you if you have entered any data incorrectly
  • Allow numerous people to work on the same project at the same time.

When it comes to accounting, Excel is a great tool

Here are some of the steps you’ll need to take to set up an Excel bookkeeping system for any small business now that we’ve spoken about what to expect.

Start with an accounting Excel sheet template

A bookkeeping template in Excel can save you time and frustration if you don’t already have Excel skills or just want to get up to speed quickly.

Customize your template’s chart of accounts

As a reminder, the chart of accounts for your firm doesn’t have to look precisely like this one—every organization generates and expends money differently.

A “Gas and Auto” account, for example, might exist if you frequently travel for work. On the other hand, if you work from home, you can have a “Monthly Internet” one.

In the end, though, each account must be classified as among the following in order to retain your records in Excel:

  • Tracking your business’s income can be done through a variety of different means.
  • Accounts always help to keep track of the money that leaves your business.
  • Cost of products SOLD (COGS): The amount you spend on the item you sell to customers or clients.

Modify the income statement sheet to meet your needs

To create your income statement sheet, you’ll first need to customize your accounting system. Here, you’ll enter all the data from the chart of accounts, taking care to include those accounts but keeping them segregated according to income, costs or COGS.


In other words, as we’ve demonstrated, any business owner may develop their own Excel accounting system by following a few basic steps. We recommend starting with an Excel template that includes a chart of accounts, transactions and an income statement and customizing it to fit your company’s specific needs if you plan to conduct your basic bookkeeping in Excel.

In spite of this, it is crucial to remember that Excel bookkeeping is a time-consuming and manual procedure. As a result, if you are searching for a better way to keep track of your company’s money and entire accounting updates, we recommend looking into several bookkeeping and accounting software options.

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