If you’re anything like the entrepreneurs I know, you did not get into business to do bookkeeping. But entrepreneurs end up wearing a lot of different hats in the early stages of growing their business and the bookkeeper hat is one of them.
It really doesn’t make sense for business owners who are in the initial stages of growth to hire a bookkeeper. But you still need a bookkeeping solution that is easy to learn, quick, and can be implemented throughout the year.
This is why a lot of people turn to spreadsheets. Spreadsheets aren’t as intimidating as Quickbooks Online, people can create them exactly as they want, and they do the trick…for the most part.
I love spreadsheets, so let me be clear, I’m not knocking them. BUT here is why I’m a proponent of Quickbooks Online over a financial spreadsheet any day…
1. Accuracy – Reconciliation is the process of comparing what’s in your accounting program with what’s on your bank statements. This process ensures, without a doubt, that you are accounting for ALL of your business transactions. Spreadsheets don’t have this fail safe, so oftentimes transactions fall through the cracks.
2. Mixing Personal & Business – Spreadsheets make it easier to mix business and personal income and expenses in your bank accounts. The IRS hates when business owners do this. Bookkeepers also hate it 😉 If you only take one thing away from this blog post, let it be this – separate your personal and business finances in different bank accounts and credit cards!
3. Time – When QBO is optimized for your specific business type and you have bank rules set up, you can automate 90% of your bookkeeping. In fact, I’ve created a system so you can complete accurate month-end bookkeeping in 20 minutes or less. Beat that spreadsheet.
4. Money – We all pay for a lot of subscriptions, I get it. QBO Simple Start (my recommended plan to start with) is $25/mo. So my question to you is – what is your hourly rate and do you spend $25 worth of your time each month on your spreadsheet? If you could automate 90% of your bookkeeping in QBO, would that be worth $25 per month?
5. Growth – You will grow out of your spreadsheet. I’ve seen some intense spreadsheets and despite all the formulas, they are not as efficient or effective as QBO. Not to mention, the IRS would much rather look at a QBO account than a spreadsheet. Growth in your business is amazing, but it often comes quickly and more often than not, it feels like a scramble to keep up. The people who grow gracefully took the time to set up their systems first.
Having clear & accurate financial data is essential for being able to make informed strategic decisions about your business. Check out my upcoming course Automatic Bookkeeping for all the QBO hacks.