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Bookkeeping software can be as simple as a home produced spreadsheet but with additional facets that can have significant financial benefits to the business. Bookkeeping software produced on spreadsheets would normally be a series of spreadsheets with the columns preset and titled and formulae written into the sheet to automatically add up each column. In addition the columns used would normally be restricted to general headings to include a full analysis of all items. Small businesses that might produce their own spreadsheet would often do this on an annual basis. Bookkeeping software is much more likely to provide these bookkeeping spreadsheet templates on a monthly basis to enable a degree of financial control to be exercised by the small business.
In other words there is no cookie cutter approach because each potential investment has different profit and loss drivers. One of the first things to consider is what kind of data you have to work with in your cash flow template Excel spreadsheet. Ideally you re looking for accurate monthly data including income statement items like revenue and operating expenses and balance sheet items like equipment purchases and cash from financing activities. If you have a longer time frame you can go with quarterly periods but annual tends to be too long. After all how can you predict what is going to happen beyond 5 years with any accuracy unless you re valuing an annuity? Next how much detail do you need in your cash flow template Excel spreadsheet at the individual line item level? Is cash from financing sufficient or do you need equity financing debt financing interest earned etc.
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The end result was that I just did not want to use this particular spreadsheet despite its useful calculations. So what could have been done to make it better? Here are 7 tips that will help you create more user-friendly spreadsheets. 1/ Consider the End User Who is going to use the spreadsheet? Are they knowledgeable about Excel? Are they knowledgeable about the contents of the spreadsheet? The answers to these questions will determine the layout security issues the amount of help provided and possibly the formatting. 2/ Get the Layout Right Often it helps to put pen to paper and sketch the rough layout of a spreadsheet beforehand.