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Your business revenue and losses are reported as part of your annual personal income tax. For this small business start-up you won t need to buy fancy accounting software like Quick Books or AccPac to track your business. Only as part of incorporating Bizfare Enterprise Inc in 2005 was it a requirement to engage an accountant. My accountant did insist on using Quick Books software for my business accounting. Up until then using a simple spreadsheet template served my business accounting needs for over ten years. This simple spreadsheet accounting stood the test of multiple audits by Revenue Canada (CRA and Revenue Canada Goods and Services Tax.
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.
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When confronted with a mountain of data that you need to sift through and organize nothing can make your job faster and easier to understand than an effective spreadsheet. When it comes time to share this information with others you will be able to quickly and succinctly offer your findings for their consideration in an easy-on-the-eyes-and-brain form. Without having to completely learn Excel you can create an idyllic spreadsheet template that you can use over and over again to present new information just by changing the data in your cells. With so many options available in spreadsheet programs like Excel you need to consider which ones will work best for your project.