Many small business owners struggle in the beginning with how to manage their finances. If you are trying to manage your business yourself, your first idea might be to use the top-rated and easy-to-use program, Excel. While it is a great program, it might not be the best option for a small business owner or accountant to manage a business’s accounting. Find out if cloud-based accounting might be a good change for your business.  

What is cloud accounting?

Cloud-based accounting is accounting information that is stored in and accessed through an Internet or intranet connection. This means that you can easily access your business’ financial information from anywhere in the world, and easily share that information in real-time with anyone else with the appropriate permissions. 

What are the pros and cons of using Excel? 

Excel is a trusted program among many accountants and business owners. It is helpful software for business functions but is not the best option for managing your business’s accounting. Many online resources are available to help you learn some of the more advanced features of Excel.

Some pros of using Excel

  • The program is inexpensive. Many businesses use Microsoft, which means you automatically have Excel on your computer. It is cheap and doesn’t require any upgrades.  
  • It is easily accessible. Because Excel is so popular as part of the Microsoft Suite, it is accessible to many business owners.


  • You can share spreadsheets with multiple people. Excel makes it easy for multiple users to share and use spreadsheets.

Some cons:

While there are benefits to using Excel for your business, this program has some disadvantages, especially when compared to cloud-based accounting:

  • There’s a higher chance of human error. It is easy to make one copy and paste error, affecting the entire spreadsheet. 
  • Creating a spreadsheet with formulas takes a lot of time. It can be difficult for the average Exel user to create a spreadsheet that accurately displays the necessary information. A lot of time must go into making the proper Excel spreadsheet. 
  • It’s a highly complex program. Sure, Excel is easy to use at a beginner level, but as your business grows, you’ll realize how complicated the formulas can get. Creating a spreadsheet to manage all your business accounting would require lots of Excel training. 
  • It can’t categorize expenses or auto-fills. Cloud-based accounting quickly categorizes expenses and auto-fills data, while Excel requires lots of manual data entry. Human data entry leads to a greater level of error. 
  • Not compatible with other business applications. Excel doesn’t have options to merge with other applications you might need to use for your business. 


What are the benefits of switching to cloud-based accounting?

Excel might have been a great program to start your business with, but you could benefit significantly from switching to a cloud-based accounting platform. Let’s look at just a few of the many benefits.

1. Your data is secure. 

You don’t have to worry about computed crashes, viruses, and power outages deleting all of your financial data. Cloud accounting keeps all your data secure because you can always access it without having software downloaded. It also keeps you informed about who is logged in and viewing or editing your data.  

Additionally, your data will remain safe from loss or physical damage. Storing your data in the cloud means that you will never lose it. It will be secure and accessible from anywhere in the world. Having your financial reports and information on the go is always helpful.

2. Smaller chance of human error. 

If you choose to use Excel for your accounting needs, you should understand the risks of human error. All the copying and pasting of information could make way for big mistakes. But when all your data is on the cloud, there are auto-fill features and fewer chances of error.  

3. Double-enrty accounting method access 

Cloud-based accounting programs utilize the double-entry accounting method. This means that each bit of financial information entered into your software is stored in two different places – the journal, which has a list of all entries, and the ledger, which has the entries organized by account. This double-entry method helps protect your financial data and prevents human error. Excel is a single ledger software.

4. Data backup and recovery 

You don’t have to worry about constantly backing up your data with cloud accounting. Since it is on the server, it is continuously updating itself and backing up your data. Another nice perk is that you don’t have to upgrade software. The program developers can update whatever they need to overnight. That way, you don’t have to worry to do it yourself.  


Why is Automa8e the best option for your small business? 


Automa8e is a cloud-based accounting program for small business owners, accountants, and freelancers. We offer a variety of functional tools that help you manage bookkeeping, generate reports, and more. The benefits that Automa8e offers are extensive.

1. It will save you time. 

Using Automa8e can save you valuable business time because it has so many features. You can track sales and purchases, manage invoices and suppliers, perform accounts receivable and payable, and so much more. You won’t be running the risk of mistakes by manually entering large batches of data. 

2. Automa8e is an affordable software option. 

Besides being reasonably priced, Automa8e also saves you money in other ways. Human errors can cause you to lose money. With Automa8e taking the manual work out of your bookkeeping, your business is at far less risk of making mistakes, saving you money. 

3. It provides real-time data to manage your business better.

Automa8e is your go-to accounting system for your business’s needs. It provides your personalized dashboard where you can keep an eye on all your data at a glance. Once you have entered your data, Automa8e generates all reports automatically. There is no need for you to manually create your financial statements – they are created for you. This feature allows you always to be aware of your cash flow and your business’ exact financial position at any moment in time.  



Not only do you have your day-to-day and monthly accounting automated for you, Automa8e can also help you calculate your taxes. Whether you pay your taxes quarterly or yearly, Automa8e can keep track of your deductions, your income statement for tax purposes, and help calculate your overall tax liability. Cloud technology is what makes all these features possible.  

If you are stuck using Excel to manage your business’s accounting functions, maybe it’s time to ditch it. Now that you know the essential details about cloud accounting, you can make an informed decision for your business. Check out Automa8e today.