Budgeting Worksheet Templates vs. Software

Budgeting software has been around for a fairly short amount of time, but more and more people seem to be adopting it as their budgeting process standard. Although not a magic bullet, the software can provide tremendous benefits to those who understand its capabilities.

Worksheets and templates, on the other hand, have been the staple for quite a while now. It is preferred because of the ease of use it provides, as well as having a system that is nearly universally understood.

Storage

In terms of storage space, the volume of worksheets easily builds up over time. Although relatively easy to store, once you have accumulated the volume, then worksheets become rather bulky over a period of time.

Files generated by software on the other hand only occupy a very small space on a computer hard drive that is in itself already small. Unless you regularly print out a copy, the software files, even over time, will still fit inside the hard drive. If transferred to a CD ROM, a few years of electronic budgeting will fit on a single piece of disc.

Therefore, between the two, the latter will be the obvious winner in this category. But wait. The small storage advantage of the software files may also prove to be a very tangible disadvantage as well. It is so much easier to misplace a CD ROM than a worksheet. So, in the end, you will probably have to develop a system of backups for the software files.

Ease of use

The widespread availability of computers and the virtual links developed by LAN as well as the internet have allowed the feasibility of sharing files across great physical divides.

Gone are the days where the only way for two people to read a worksheet at the same time was for them to share a table with the worksheet between them. Now, electronic files may be sent across borders in a matter of seconds, and then viewed simultaneously on computers.

Worksheets, however, allow for the human touch factor. Financial data is somewhat more palatable, especially if written with red ink, when it is discussed with a thinking, feeling human.

Interpretation of data

Another inherent advantage of using software is that it can automatically tabulate data for you. All you have to do is identify which ones, and the software does the rest.

The software can also be programmed to provide you with more current feedback of the actual status of your financial situation. For those with online banking access, even your up to date balance can be factored in immediately towards your books thereby reducing your banking frequency.

Some popular budgeting software

Quicken is one of the more widely used programs. A favorite of the small business setting, as well as with people needing budgetary help, it remains as one of the more useful programs around.

MYOB, or Mind Your Own Business, is another popular choice mostly by those in business for themselves, or by those already in some form of entrepreneurship. Many websites offer budgeting templates and software built around the itemized envelope method which separates expense items through individualized category envelopes.

One thing is sure. Good software will be able to ease your documentary process, as it provides you access to the raw data as well as a host of possible interpretations from it.