You may be wondering, why this is important. There are two major reasons why it’s important to create drop down menus in Google Sheets, when you’re using Google Sheets in Accounting for Startups.
You want to make sure certain things are consistent. A name for example. We don’t want typo’s creating different versions of the same name. That would result in information being incomplete when we try to report on the activity for a particular name.
The other reason, is it saves time on data entry. Rather than having to type the same thing, over, and over, you can choose it, in a click.
I’m also going to show you, how to use a lookup, to bring in additional information. In the previous segment, on Bootstrapping your Accounting with Google Sheets, I laid out the columns for you. Next to the “Name” column, we had “Name Type.” We’re going to create this, and then use a vlookup formula, so that when you choose a name, from the list, it’s type will be brought in, automatically. This will save time, and also minimize the chances of data entry errors.