Every small business needs to keep records of sales invoices and income received and purchase invoices in respect of expenses. It is not sufficient for accounting and taxation purposes for these receipts and payments to be left in the office or the back of a van in a carrier bag. At some stage these prime bookkeeping documents need to be processed. Processing the financial documents related to a business enterprise basically means they need to be listed. For taxation and financial control purposes the invoices also need to be added up and analyzed. The most basic method would be to simply make a list of the sales income and a second list of the purchase expenses. Using a manual method of listing the information falls short of the analysis required and is more time consuming that using a little technology to both ensure the summation is accurate and the analysis simplified. Listing the sales and expenses of a small business on spreadsheets is no more difficult then a manual paper system and has tremendous advantages in automating and ensuring accuracy.
If you are relatively new to using Excel, you will notice that learning to use all Excel formulas is no easy task. There are many different functions that can be accomplished by the use of these formulas such as mathematical calculations. This is not something you can accomplish by listing your data on a Word document. The simplest of all Excel formulas are those used to perform basic mathematical calculations such as addition, subtraction, division and multiplication. If you have never worked inside of an Excel spreadsheet, you are going to need to find a course that can teach you how to get started. These functions are among the most basic and are quickly learned by even the most inexperienced users.