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Spreadsheets vs. Accounting Software: Which Delivers a Faster Month‑End Close?

  • Writer: Agnes Lee
    Agnes Lee
  • Jun 30
  • 2 min read

Closing the books each month is the finance team’s recurring race against the calendar. Miss the deadline and you delay management reports, tax filings, and strategic decisions. Two common approaches dominate SME back offices: manual spreadsheets (Excel, Google Sheets) and dedicated accounting software (e.g., ABSS/MYOB, SQL Account). Which one helps you cross the finish line sooner—and with fewer headaches?


1. Comparing the Workflows

Close‑Task

Spreadsheets

Accounting Software

Data Collection

Export bank CSVs, copy‑paste sales & expenses, risk broken formulas

Bank CSV import wizard, live sales & purchase ledgers

Accrual Adjustments

Insert extra tabs, track links

Recurring journal templates streamline adjustments

Trial Balance

Build from scratch each period

Auto‑generated TB, always in balance

Management Reports

Re‑link charts, fix cell refs

Built‑in P&L, Balance Sheet, Cash Flow at any time

Audit Trail

Hidden cell history, easy to overwrite

Immutable logs, user‑stamped


2. How Long Does Each Method Take?

Finance teams in similar 20‑employee SMEs shared their average month‑end timings:

Activity

Spreadsheets (hrs)

Accounting Software (hrs)

Data import & cleaning

6

1

Bank & AR/AP reconciliations

4

1.5

Adjustments & journals

3

1

Report compilation

2

0.5

Total

15 hrs

4 hrs

Result: Dedicated software slashes the close time by ~70 %, freeing nearly 11 staff‑hours every month.

3. Hidden Costs of Spreadsheet Closes

  • Version Chaos – “Final v8_FINAL.xlsx” breeds confusion.

  • Formula Breakage – One mistaken delete can throw totals off.

  • Audit Risk – No iron‑clad trail; auditors spend extra hours recreating data.

  • Scalability Ceiling – More transactions = heavier files, slower workbooks.


4. Software Advantages Beyond Speed

  1. Built‑In Controls – User permissions, approval workflows, and audit logs reduce fraud risk.

  2. Real‑Time Visibility – Management dashboards update daily, not just at month‑end.

  3. InvoiceNow & GST Automation – Peppol e‑invoicing and auto‑GST coding save compliance hours.

  4. Easier Collaboration – Multiple users work simultaneously without version clashes.


5. When Spreadsheets Still Make Sense

  • Very Early‑Stage Start‑Ups with <20 transactions/month.

  • One‑Off Modelling (what‑ifs, forecasts) outside the GL.

  • Ad‑Hoc Dashboards that feed from the accounting platform but visualise in Excel/Sheets.

For everything else—recurring AP, AR and compliance spreadsheets show their limits quickly.


6. Transition Tips for a Faster Close

  1. Map Your Close Checklist – Identify manual steps ripe for automation.

  2. Leverage Recurring Journals – Automate depreciation, accruals, and payroll entries.

  3. Train the Team – A 2‑hour workshop can cut days off your timetable.

  4. Run Parallel for One Period – Prove accuracy before fully switching.


7. Bottom Line

Spreadsheets are familiar, flexible, and free—but they’re also time‑hungry, error‑prone, and audit‑shy. Accounting software turns the month‑end close from a scramble into a streamlined sequence, saving hours, reducing stress, and delivering fresher insights.


Ready to trim your close by 70 %?


Talk to us about ABSS or SQL  Account and watch next month’s deadline feel like just another day.


Close faster, decide sooner, grow smarter.





 
 
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