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Both the hardcopy columnar pad and an electronic spreadsheet version of my financial books were accepted by Revenue Canada. (BTW the audits disclosed more ways for me to claim back additional taxes for the previous three years! Now that s my type of audit!) In your new start-up business venture you likely will generate somewhere between 10 to 30 accounting transactions per month. These transactions would be items like Expense Revenue (sales) Liability (Loan) type transactions and Sales Tax (Federal + State/Provincial) Collection/Deductions. These transactions are further broken down into various Business Accounts.
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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This is where the right project management software tool shines and spreadsheets fade. A good project management tool will be database-oriented and should allow for different types of ad hoc reporting across multiple projects. This enables the mining of all kinds of data. You simply cannot do this in a spreadsheet at the same level. If you really really know what you are doing it is possible to tie spreadsheets together and generate some integrated data. But that is not the same thing. You simply cannot on a whim mine into the data represented in your multiple spreadsheets. And in today s environment this is critically important.