QuickBooks vs. the Spreadsheet: Why Your Startup Needs Real Accounting Software

It's hard to start a new firm, and a lot of entrepreneurs make the same mistake when it comes to money: they use simple spreadsheets like Excel or Google Sheets to keep track of their money.

A spreadsheet is cheap and easy to use, but it's actually costing your new business time, peace of mind, and most crucially, money. Here are some basic reasons why serious startups need dedicated accounting software like QuickBooks Online:

1. Stop keeping track and start seeing
A spreadsheet is like a manual ledger; it simply keeps track of the information you enter. But QuickBooks is a real-time financial hub. It connects to your bank accounts and credit cards on its own and downloads and sorts your transactions for you.

Spreadsheet Reality: You spend hours entering in data by hand, which is easy to make mistakes and is out of date as soon as you complete.

QuickBooks Advantage: You can monitor your cash flow and expenses straight away and with 100% accuracy, so you can tell if you're making money right now, not weeks ago.

2. Get ready for tax season (without freaking out)
Tax season is the most annoying period for new business owners. You or your accountant have to spend hours (which you pay for!) going through messy data in a spreadsheet to locate deductions.

Table of contents The truth is that you can't make regular reports, which makes paying taxes every three months and reporting at the end of the year tedious and costly.

QuickBooks Advantage: With just one click, the program makes professional, IRS-ready reports like Profit & Loss (P&L) statements and Balance Sheets. This saves your accountant time and money by lowering the cost of preparing your taxes.

3. Build trust so you may grow
As your firm grows, you'll need loans, investors, or credit terms. None of these professional groups will accept a personalized spreadsheet as proof of financial wellness.

Spreadsheet Reality: Investors and lenders can't trust data that hasn't been checked and can be readily changed.

The good thing about QuickBooks is that Industry-standard accounting software makes reports that are professional and can be verified, which gives bankers, investors, and potential partners trust. It shows that you're running a real business.

The Bottom Line: A hobby can be managed with a basic spreadsheet, but a serious firm needs a strong financial base. The first step to getting out of the "startup phase" and making sure your business keeps growing is to get professional software like QuickBooks.

Want to improve your money skills? Plaza's Accounting Services is a qualified QuickBooks ProAdvisor. They can take care of the whole setup, migration, and training process for you. Get in touch with us today to make sure your startup is based on solid numbers.