Using Excel As Accounting Software

In the property management community there are many Excel users, and that fact is not a secret. Excel is an excellent spreadsheet program that often plugs up the common gaps found in other programs for accounting. However, some property managers may rely a little too much on Excel.

Recently, aficionados of Excel who were dissatisfied with other software accounting products and their intricacies began using Excel as their main software for accounting purposes. There are always success stories around that tell of those who exchanged their "non-functional" software accounting programs in favor of using Excel. The facts are, though, that when Excel is your main software accounting product, it may actually cause more future problems than it eliminates.
Following are features lacking in Excel when it is compared to a property management dedicated software accounting system.

Data Integrity

For those who use Excel exclusively as an accounting program, its flexibility can become a detriment instead of an asset. Flexibility in spreadsheet programs enables the user to change formulas when necessary and customize data. This very feature becomes a downside when using Excel as your primary accounting program. Even a rudimentary accounting program should offer some control to ensure the integrity of the data.

User Error Protection

Excel does not offer a double entry system for accounting. The equation for Equity is Assets minus Liabilities. There is a good reason this system has been in use for centuries, because it keeps the books balanced. The accuracy of any information entered in a computer depends on the person who enters it. Even so, an accounting program that is integrated provides a kind of protection not available with Excel.

Ease of Use

Anyone using Excel as a software accounting substitute must be very skilled. It may be easier when using a template, but the user must still know his or her way around Excel in order to keep business transactions organized. Other systems are far easier than Excel for setting up a solid system with minimum maintenance for financial purposes.

Efficiency

Traditional accounting programs make it easier to balance bank accounts, track transactions and create accurate financial statements. While Excel can be used for these purposes, it is better for a smaller property management business to use standard software for its accounting needs.

Rather than trying to make Excel into an accounting program, it is wiser to just use it as a spreadsheet program, for which it was designed.