Considering accountants on here usually recommend the free software such as VT Cash book, I don't think they could be accused of selling software!!
There are very few businesses which are so small and simple that a spreadsheet would be better than proper software. If there are time lags between invoice date and payment date, then that's another column/complication in a spreadsheet. If there are time lags between a cheque being written and it being cleared through the bank statement, that's another column/tick box and complication. For a purely "cash" business with no debtors, creditors or bank items in transit, then, yes indeed a spreadsheet is probably good enough IF done accurately with the right checks and balances.
Quite simply, a lot of people have an uncanny ability to screw up even the most simple spreadsheet. That's why accountants tend to steer people away from them - it's from years of experience of seeing the foul-ups first hand and knowing the business mistakes and wasted time that follow.
Just a few classic examples:-
1. "Hiding" a row or column so that the numbers are still included in the totals but aren't actually visible on the spreadsheet - most people do this thinking that it's deleting the transaction because they're frightened of the "delete" button so think hiding gets rid of it. Doh!
2. Putting in non-numeric values in a cell - so the number doesn't get added in the totals - such as a pound sign or a comma after the thousand, or a space in the number, etc - Spreadsheet looks right, but totals aren't.
3. Entering column or row totals manually because the user can't work out how to do an @sum formula, then, of course, forgetting to change the total when other figures change.
4. Adding a manual figure at the end of a formula to fudge it to balance and hope no-one notices, i.e. "@sum(A1:A20) +23.97"
5. Using colours to identify and analyse and then print it out in black & white or the accountant/tax inspector is colour blind so end user can't see!
6. Similarly, formatting to use red for negative numbers instead of () or - and prints out in b&w or no appreciation of user being colour blind, so negative numbers look like positive numbers.
7. Random use of italics, colours, bolds, different fonts that mean something to the person entering the data, but completely meaningless to any other user.
8. Random use of formulae that mean something to the user but have to be worked out and interpreted by other users.
9. Putting in "checks" but not actually checking the right things, meaning that there are mistakes but user is "happy" because his/her checks balance, and doesn't see the need to re-check etc.
10. Not including any narratives - just a sheet of numbers which no descriptions meaning accountant/tax inspector has to spend more time looking at supporting paperwork to find explanations for unusual transactions.
The only sensible approach for spreadsheet use is for them to be properly designed by a professional, and then heavily protected so that all the user can do is enter data in a prescribed manner in prescribed places, letting the system do all the calculations, checks, etc. Fair enough, but that sounds very much like proper accounting software to me, so why bother wasting time and money designing and protecting a robust spreadsheet when you can get proper software free or at low cost?
it's only adding up a list of numbers. A simple click on the cell will show you what's happening. If you can cross check and link this to your bank balance you are well on your way to keeping good records and limiting your accountants time and expense.
