Skip to main content How to help your clients move from spreadsheets to accounting software
As an accountant or bookkeeper, you’ll be well aware of the efficiencies that accounting software can bring about, especially when it’s embraced by your clients. With a whopping 88% of spreadsheets containing some kind of error, it pays to get clients off spreadsheets and on to software.
So how do you convince your more sceptical clients to make the switch? Here are some of the most compelling reasons you can share when discussing the transition with your clients.
1. Ease of use
You may find you have clients who are sceptical - or even scared - of moving on to accounting software. Some small business clients may not be digitally savvy and could feel out of their depth at the prospect of using complex platforms.
The good news is that FreeAgent is easy to use. Designed specifically for small businesses, it has simple but powerful features and an intuitive interface that’s easy for clients to get to grips with.
When something goes wrong in a spreadsheet, you’re on your own, but with accounting software, it’s a different story. FreeAgent has a comprehensive online Knowledge Base and our UK-based support team are on hand if you or your clients ever need help.
2. Time savings
As well as being easy to use, accounting software can save you and your clients countless hours that you would otherwise spend inputting information. Spreadsheets need to be manually updated whereas software like FreeAgent allows clients to keep track of their daily business admin with just a few clicks.
Our award-winning mobile app automatically extracts key information from receipts, helping clients keep on top of their expenses wherever they are. And invoices and estimates can be created within FreeAgent, with pre-built templates that help to streamline the process.
By using spreadsheets alone, clients miss out on many of the automated features offered by accounting software that can save them time and effort in keeping their accounts up to date.
Using accounting software can also reduce time and stress for both accountants and clients when Self Assessment submissions are due. With the relevant information already stored in the cloud, you can file a tax return directly from FreeAgent with just a few clicks.
3. Accuracy
Even the most carefully crafted spreadsheet can be prone to inaccuracies. A copy and paste error or a misplaced mouse click can derail an entire workbook, resulting in inaccurate or misleading data.
JP Morgan famously lost £6 billion back in 2012 due to a spreadsheet error, and the London Olympic Games oversold 10,000 tickets to a synchronised swimming event after an employee mistyped ‘20,000’ remaining tickets into a spreadsheet instead of the correct figure of 10,000.
The moral of these spreadsheet horror stories? Mistakes are easy to make but not always easy to catch or rectify. FreeAgent helps minimise the risk of mistyped digits with its bank feeds, which import the transaction data from your clients’ bank accounts automatically.
4. Security
In this digital age, cyber security is more important than ever. Spreadsheets often lack advanced encryption features for safeguarding sensitive data and, with hacking on the rise, data stored on spreadsheets could be at risk of theft.
FreeAgent has a variety of stringent processes and measures in place to help protect both Practice Partners and their clients’ data. From data encryption to two-factor authentication, find out more about the ways FreeAgent keeps data under a very secure virtual lock and key.
5. Visibility
FreeAgent is full of useful features, one of them being the Tax Timeline. Not only does this alert your clients to upcoming dates and submission deadlines, but it also gives them a live projection of what they owe HMRC, so they’ll know how much cash to set aside for tax bills.
Of course, this information could be calculated in a spreadsheet, but it would require accurate data to be entered manually, not to mention complex formulas which are prone to human error.
6. Growth
Accounting software allows your clients to handle many basic bookkeeping tasks themselves, meaning you can spend less time chasing information and instead focus on adding value to their businesses by offering advice, insight and guidance.
Martin Brooks, founder of Gold Stag Accounts, recently told us why he encourages clients to do their own day-to-day admin in FreeAgent, freeing up his time to work on their tax planning and business growth strategies.
7. MTD for ITSA is coming
Last but by no means least, the way businesses and landlords are required to store financial data and submit returns is changing. Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will bring with it an inevitable shift in the way many of your clients will need to work day to day.
While spreadsheets can be compliant with parts of the new legislation, this is only if they’re combined with specialist bridging software that enables the relevant data to be submitted to HMRC. One way or another, if your clients are still using spreadsheets for bookkeeping and accounting, it’s likely that they’ll have to overhaul their systems at some point.
A simpler solution is to switch them to tried and tested accounting software, like FreeAgent. FreeAgent supports MTD for VAT submissions and is on HMRC's list of compatible software for MTD for ITSA for businesses and agents. This means that you will be able to use FreeAgent with your small business clients to help them follow the rules of MTD for ITSA, and make the required tax submissions on their behalf, before the legislation comes into effect.
For more tips on moving clients to accounting software, check out our recent webinar where FreeAgent’s Kris Sawford discusses how to get your clients started with digital record keeping.
Last updated 8 September 2022.