Do I Need Accounting Software?

JAN 8, 2021 / by Carrie Poppelaars

Accounting, Bookkeeping, Entrepreneurship, Learn Bookkeeping, Quickbooks Online, Small Business Accounting, Small Business Bookkeeping 

Do I need accounting software for my small business?

 

Absolutely not!  Did I just say that?  

 

My business is based on using Quickbooks Online (QBO) to maintain the bookkeeping for my monthly clients.  I love QBO, BUT not every business should spend the money on software until they are ready.

 

Why do I say this? 

 

  1. It is really important to keep costs low when you are just starting off and building your business.  

  2. Just paying for a software package doesn’t mean anything unless you know how to use it. These software packages do a lot of things for you but if you don’t understand what is happening, it can cause a lot of issues in your accounting.  We see it all the time, when we take on new clients.

 

It is important to note that these software packages didn’t come on the scene until the mid 1980’s, but businesses have obviously been doing their own bookkeeping for centuries in some form or another.  My grandfather was a CPA and he didn’t have computers at all.  He used green lined paper with the space for all the digits needed. If they could make the numbers work with paper and pencil, then you can manage your business numbers with a spreadsheet. You won’t even need a calculator.

 

Almost all businesses can record their expenses and income with a spreadsheet and produce fully functional financials that will help them make financial decisions as well as prepare for taxes. I am sure that you could find a good use for the $300-500 that you will be saving annually until you are ready for an accounting software program.

 

You can create a spreadsheet that sorts the expenses by date and expense category.  Subtract these expenses from the sales for each month to get your Profit for the year or month.

 

To simplify this step, we have created a digital spreadsheet that will allow you to create these financials  just by entering the transactions as they occur.  

 

Click on this link to get more information on this easy to use spreadsheet. 

 


5 Steps to Get Your 2020 Bookkeeping Up To Date Today

Free Action Plan to Take Your 2020 Business Finances from a Stressful To Do to a Powerful Done in 5 Easy Steps.

  • Quick Training Video
  • P&L Spreadsheet Template:by year/month
  • Additional Resources

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