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  • Leanne Sta Ana

Why Spreadsheets Are Harming Your Crypto Accounting

Updated: 6 days ago

Spreadsheets slow down the accounting process with manual entry and inevitable human error. Get started with automated accounting, the future of crypto accounting.

Many small businesses rely on spreadsheets to organise their accounting. What most small business owners don’t realise, however, is that spreadsheets can actually be detrimental to business accounting.

Tradition doesn’t always equal better. More often than not, conventional Excel spreadsheets are prone to numerical errors. Even the simplest mistakes can be costly, making data reconciliation a more time-consuming task than it really should be. This is a result of multiple inevitable factors, including human error, manual handling and inaccurate entry.

Once you start dabbling in cryptocurrency accounting while still using traditional spreadsheets, the accounting process can become unnecessarily complicated. While it may be satisfactory for most businesses to manage traditional finances with conventional accounting spreadsheets, cryptocurrency is far from traditional. With the volatile nature of crypto, it’s important to use accounting systems that have adapted to how the modern currency works.

Luckily, there is actually an easy and simple alternative to Excel spreadsheets that small businesses and accountants should leverage to increase productivity, particularly for the purpose of accounting for cryptocurrency.

Crypto accounting software are holistic fintech tools that enable you to efficiently track, manage and reconcile your crypto transaction data without the common disadvantages of spreadsheets that many businesses have settled for.

This emerging accounting software has revolutionised the accounting process for cryptocurrency by replacing manual management with automation and direct integrations with other accounting systems, such as Xero and QuickBooks.

In comparison to modern crypto accounting solutions, find out why spreadsheets are actually harming your business and crypto accounting:

Spreadsheets are slow and static

Spreadsheets require manual handling and humans aren’t robots - we can be slow, unproductive, and crypto accounting requires a trained skill set to be able to be done quickly and accurately, which most small business owners don’t have time for.

Excel spreadsheets also can’t be updated in real time. Unlike fiat currency, the value of crypto is constantly changing and it’s impossible to manually update your records every time the market goes up or down on a static spreadsheet. .

The solution? Automated accounting systems. Our crypto accounting software Journaler is embedded with a sophisticated automated accounting system that eliminates the manual processing of crypto data, making tracking easier and reconciliation faster.

Journaler features direct integration with Xero (QuickBooks integration coming soon!) so you can instantly sync your crypto transaction data straight into the accounting system without manual entry. Journaler gets rid of the need to have a middleman manually reconciling data, allowing you to focus on more important tasks.

Thanks to Journaler’s automated accounting system, your crypto wallets will always be up-to-date with live transaction feeds that means you’re never one step behind. With several supported blockchain wallets and 10,000+ exchange wallets on our software (that’s more than any other software on the market), you’ll automatically be more productive and more efficient than if you were relying on idle spreadsheets.

Spreadsheets aren’t accurate

With manual power comes inevitable human error. Due to manual entry, spreadsheets aren’t always 100% accurate. Excel doesn’t permit users to confidently validate their data, making spreadsheets vulnerable to human error.

Accounting errors as a result of an honest, yet destructive human mistake can be costly to your business and can negate all your hard work. You can easily avoid this with Journaler’s automated accounting system that ensures accuracy, compliance and your trust in our precise software.

Cut the reconciliation process in half with Journaler’s advanced accounting technology, built to help alleviate the complex workload of managing and reconciling digital assets. Unlike Excel spreadsheets, Journaler keeps track of your crypto data and transaction history, while eradicating any room for human error.

Prevent any accounting errors from affecting your business with crypto accounting software that does the hard work for you.

Spreadsheets are hard to keep track of

Basic accounting often leads you to managing several spreadsheets at a time. However, Excel doesn’t feature sophisticated tools that integrate crypto data feeds and reports when you need it to. If you’re an accountant or own several small businesses, the limitations of Excel force you to silo accounting data into separate spreadsheets - easily becoming convoluted and difficult to track.

With Journaler’s upcoming Multi-Company tool, you’ll soon be able to create separate company and/or client profiles that allow you to manage different accounting databases in one simple platform. The need for having copious spreadsheets is severely outdated, when it can be easily organised with smart accounting software such as Journaler.

Collaboration is restricted

With Excel spreadsheets as your main medium for crypto accounting and record keeping, collaboration often goes out of the window. With hybrid work conditions becoming more of the norm for business, spreadsheets are delaying the process of sharing accounting information.

Excel doesn’t update spreadsheets in real time, meaning you need to waste extra time sending files back and forth between clients. In order to address this widespread issue, Journaler will soon allow you to invite others to your account via a Multi-User tool that’s currently in development, giving viewing or editing access to selected users.

Collaborative accounting will be simplified with Journaler’s upcoming Multi-User tool, streamlining how you reconcile and review crypto transaction data with others.

Spreadsheets don’t scale

Every small business owner wants to see their business grow and reaching your goals shouldn’t be inhibited by substandard finance management. When your company grows, your finances change too – and so should your accounting practices. Spreadsheets can’t adapt to the growth of your business and your accounting needs may become more intricate. They may work in your favour for now, but it’s crucial to think ahead. Hence, using spreadsheets for your crypto accounting can create more challenges for your business, rather than solving them.

Journaler can customise its features no matter the size of your business. With our personalised crypto accounting software, we guarantee you’ll be able to achieve more in less time than you would with any manual spreadsheet.

If you need to do accounting for a large enterprise, it would undoubtedly be an accounting nightmare to insert volatile crypto data into spreadsheets without any innovative tools to help you out. On the other hand, Journaler provides high level data import and export capabilities. Journaler allows users to import and export 10,000+ transactions in one go, making data reconciliation faster than ever.

Why switch to crypto accounting software?

If you’re still not convinced of the advantages of crypto accounting software compared to traditional spreadsheet accounting, you can actually save both time and money by investing in an automated accounting system for cryptocurrency. Automated crypto accounting maximises business workflow, efficiency and productivity, while also preventing the possibility of human error that can be more costly than a subscription to an advanced software.

Crypto accounting software can lead to smarter business and financial decisions, as well as help you keep on top of your cryptocurrencies without any manual input.

With Journaler, you’ll benefit from a multitude of intuitive tools that automate the accounting process for simple reconciliation and reporting. Furthermore, as fintech continues to rapidly advance with powerful software capabilities, your crypto accounting will also reap the benefits.

If you’re worried about how much investing in a crypto accounting software may cost you, fear not. Journaler instantly transforms how you do crypto accounting, starting at just $9/month. With customisable plans and labour-saving reporting tools, Journaler is the perfect solution to help you leverage your crypto accounting. Start a 30-day free trial now.

Spreadsheets could be harming your business and crypto accounting right now - it’s worth upgrading your accounting practice to help your business grow.

Leanne Sta Ana

Leanne is a Marketing Assistant at AEM Algorithm. With a strong background in copywriting and content creation, Leanne combines her love for creativity and innovative marketing with strategic research and methodical thinking. Leanne graduated with High Distinction in the Bachelor of Communications (Professional Communication) at RMIT University with a specialisation in Media.



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