Using excel spreadsheets for bookkeeping is still one of the most popular method for many small businesses. Microsoft Excel software cost less than £400, it is an one-off payment software and it is the cheapest option available compared to off the peg bookkeeping software like Sage or QuickBooks which require yearly subscriptions. The spreadsheet is usually suitable for simple businesses with low volume of business transactions.
With spreadsheet you can design your own templates and format of your bookkeeping reports. It is very flexible in terms of adding columns or deleting rows and simple arithmetic formulas can be incorporated into specific cell in the spreadsheets for quick calculation.
However, spreadsheet does not have automatic updates on latest changes to tax rates such as VAT rates and also no easy online filing facility. You may not required this facility if your accountant is doing the bookkeeping for you.
If you would like some help in design suitable excel spreadsheet templates for recording your VAT transactions. You are welcome to speak to Concise accountants. They will be able to provide you some advice.
Concise Accountancy – complete bookkeeping solutions for small businesses