Simple Accounting Software In Excel

When you need to track your expenses, the last thing that you would want is for your data to be lost. Keeping track of all the data on a spreadsheet is never an easy task, but that’s where Simple Accounting Software in Excel comes in handy.

There’s a lot of accounting software out there that costs thousands, but you don’t need them. With Microsoft Excel, you can create your own simple accounting software to keep track of your business finances and use the data to help grow your business.

In the fast-paced world of business, there is always something that needs to be done faster. If you are one of the people that like to follow best practices and keep track of everything, then you have probably at least considered using a spreadsheet for doing your accounting. A lot has changed since doing things by hand in a ledger book, but we’re going to teach you a secret here — it wasn’t all that complicated when they did it with pencil and paper either. In fact, today it is easier than ever with accounting software in an Excel .xls file format, and you can find out exactly how to make your own simple accounting software below.

 Simple Accounting Software In Excel

How To Use Excel for Accounting in 2023 [+Free Templates]

Table of Contents

  1. 1Using Excel to Reconcile Bank Accounts
  2. 2Using Excel to Track Unpaid Invoices (A/R)
  3. 3Using Excel to Track Unpaid Bills (A/P)
  4. 4Using Excel to Track Cost of Goods Sold
  5. 5Using Excel to Create Amortization Schedules
  6. 6Importing Data from QuickBooks Online Into Excel
  7. 7When to Use Bookkeeping SKoftware
  8. 8FAQs
  9. 9Bottom Line

Microsoft Excel is an invaluable tool for accountants to perform complex mathematical calculations that traditional bookkeeping software doesn’t provide. We don’t recommend you use Excel as your primary bookkeeping system as there are several free accounting software to choose from.

However, it’s a fantastic tool to supplement your bookkeeping system by performing needed reconciliations and calculations. We discuss how you can use Excel to enhance your accounting and fill in the gaps left by many free software and provide templates to assist you.

Are you looking for alternatives? Check out our list of the best small business accounting software.

Using Excel to Reconcile Bank Accounts

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Free Bank Reconciliation Template

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Free Bank Reconciliation Template thumbnail

A bank reconciliation is essential to keep your bank and book balances on the same page. Due to timing differences, bank and book balances don’t always agree. Most accounting software has bank reconciliation features, but they always come with the paid or premium version.

We prepared our Excel bank reconciliation template in case you want to use free accounting software that lacks bank reconciliation features. With our file, you can reconcile the check register balance and bank statement balances by adjusting them for deposits in transit and outstanding checks.

How To Use Our Bank Reconciliation Template


The template matches the adjusted bank balance with the balance per check register. If it’s not equal, the template will show you the difference. Once reconciled, you’ll see the word “RECONCILED.”

Using Excel to Track Unpaid Invoices (A/R)

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Free Invoice Tracker Template

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Free Invoice Tracker Template thumbnail

An A/R aging report is used by many businesses that invoice their clients to keep track of what payments are due to them. It shows when payments are owed, the amount due, and from which customer. It serves as an effective way to forecast cash flow and know exactly how much you’re owed at any given time.

You can use Excel to generate your invoices, especially if you want unlimited customization options, such as adding your logo and changing fonts. However, you may want to consider using a free invoice generator, which automates the invoicing process. Check out our recommendations for the top free invoice generators, which includes Invoice Ninja.

How To Use Our Invoice & A/R Tracker Template


The Customer Name and Days Overdue columns cannot be replaced and deleted—these cells contain the formulas. After updating the sheet, go to the Customer Tracker or A/R Aging sheets. Right-click on the table and click Refresh to reflect your changes.

Using Excel to Track Unpaid Bills (A/P)

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Free Bills Tracker Template

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Free Bills Tracker Template thumbnail

The process of tracking how much money is owed to vendors, when the bills are due, and when they have been paid is known as A/P. If you aren’t diligent with paying your vendors on time, you can end up with bad credit and a lack of supplies, among other things. Creating an A/P aging file in Excel will help you monitor your payable accounts so that you know which bills you must pay first and how behind you’re on any past-due accounts.

How To Use Our Bill & A/P Tracker Template


The Due Date, Vendor Name, and Days Overdue cannot be replaced or deleted. These cells contain the formulas. After updating the sheet, go to the Vendor Tracker or A/P Aging sheets. Right-click on the table and click Refresh to reflect your changes.

Using Excel to Track Cost of Goods Sold

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Free Inventory & COGS Tracker Template

Download as Excel

Free Inventory & COGS Tracker Template thumbnail

The main challenge of inventory accounting is determining the cost of inventory on-hand at the end of the year versus the cost of inventory sold during the year, also known as cost of goods sold (COGS). Tracking COGS is crucial in determining net income. With our COGS tracker, you can compute the most recent COGS balance of a particular inventory item and determine individual inventory gross profits or cost per unit.

The computation of inventory ending balance and COGS depends if you’re using the average cost (AVCO) method or first in, first out (FIFO) method. For our free template, we use the AVCO method because implementing the FIFO method in Excel requires complex functions.

How To Use Our Inventory & COGS Tracker Template


Tracking inventory in a spreadsheet is extremely time-consuming, especially if you have a lot of different products to track. QuickBooks Online Plus will track inventory automatically and split costs between COGS and ending inventory.

Using Excel to Create Amortization Schedules

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Free Loan Amortization Template

Download as Excel

Free Loan Amortization Template thumbnail

A loan amortization schedule shows you the schedule of payments, the amount of interest you pay, and the amount that gets deducted from the principal balance. You can use the amortization table to record monthly interest expense and update loans payable in the books. Most accounting software doesn’t have an amortization schedule feature. Our Excel template can help you prepare journal entries to update account balances.

How To Use Our Loan Amortization Template


Importing Data From QuickBooks Online Into Excel

QuickBooks Online can export any of its reports to Excel, which is useful as you can pull sales data, banking data, and invoices from many sources into one central workbook to support your accounting activities. Exporting the report is simple and can be done with the following steps:

Screenshot of QuickBooks Online Exporting Reports to Excel

Exporting Reports to Excel in QuickBooks Online

Step 1: Select Reports in the left sidebar.
Step 2: Search for and select the report that you want to export.
Step 3: Scroll to the top of the report to adjust the time period, accounting method, and other preferences, if desired.
Step 4: Click the Export icon in the top right corner of the report, then select Export to Excel. You also have the option to save the report as a PDF.
Step 5: Save the report in a location that you’ll be able to find easily, such as your desktop.

Here’s a sample Profit and Loss report exported to Excel:

QuickBooks Online Sample Profit & Loss Statement Exported to Excel

Sample Profit and Loss (P&L) Statement exported to Excel from QuickBooks Online

If you’re missing data when you open the report in Excel, it’s likely that the file is in a protected view. Select Enable Editing in Excel to view the full report.

When To Use Bookkeeping Software

While there are many accounting uses for Excel, we don’t recommend using it as your primary bookkeeping software to track your cash flow and classify your income and expenses. While it can be done, it’s much simpler to use one of the many free accounting software that are available in both cloud and desktop formats.

Basic bookkeeping software makes it easy to maintain detailed and accurate books. In addition to automating bookkeeping tasks, such as sending invoices (A/R) and paying bills (A/P), many programs use double-entry accounting, enable you to generate financial reports, provide some form of technical support, integrate with business apps, and can scale with your business.

Unlike bookkeeping software, Excel won’t be able to:

  • Generate reports based on the data from your books automatically
  • Connect to your business bank accounts or credit cards and import and sort transactions automatically
  • Create workflows to simplify accounting tasks because you still have to input formula and functions

Frequently Asked Questions (FAQs)

Can I use Excel for bookkeeping?

Yes, but it’s not recommended. If you’re a very small business, using Excel is cost-effective. But for small businesses with complex processes, Excel can be counterproductive and difficult to use. We recommend getting dedicated accounting software instead.

How do accountants use Excel?

Accountants and bookkeeping professionals use Excel to perform complex calculations, like amortization tables and depreciation schedules. They also use it to compute product cost, allocate overhead, and perform budgeting and forecasting.

Is QuickBooks better than Excel?

Overall, QuickBooks is better than Excel for accounting. It’s also easier to use because you don’t need to create formulas to perform calculations and process data. Excel requires users to have in-depth knowledge of formulas and even a little bit of programming to create automations.

Bottom Line

While using Excel for accounting tasks can be beneficial and inexpensive, it can also be a time-consuming process with the potential for errors. If you’re looking for a simpler and much more efficient way to manage your accounting, we recommend exploring different accounting software solutions to identify the one that’ll work best for you. Check out our list of the best small business accounting software for guidance.