Which Bookkeeping Software Should I Use?

As with many topics there is no one right answer to this question – it all depends on your specific business type, size, complexity, and of course personal preference.

There are two main options for new small businesses to manage bookkeeping:

1. Excel spreadsheet

   
   

It is absolutely possible to keep track of business income and expenses in excel. If you’re just starting out as a solopreneur in a service-based business (like nutritionists, coaches, and personal trainers), you likely don’t have many monthly transactions.

You’ll need to do a couple things to start your business off on the right financial foot (start an LLC and open a business bank account), but from there keeping a simple spreadsheet with one tab for expenses and another for income keeps it very simple.

For each expense list the date, amount, and vendor for each transaction, as well as a description of what it was for (marketing, office supplies, etc). That should do the trick until your business grows and you can pay for a more robust tool!

2. Accounting software

This is what many businesses (even solopreneurs) choose right out of the gates even when their business is tiny. The advantage of starting with accounting software right away is you don’t have to migrate to a new software when you are busier in your thriving business 😊

If your business is more complex – involving payroll, inventory, business loans, or sales tax, I would highly recommend using accounting software from the beginning.

There are endless options for accounting software. The ones I would definitively NOT recommend for small businesses are: QuickBooks Desktop (or anything server based), or software that is so small you can’t find YouTube videos about how to do the tasks you need to do like invoicing, receiving customer payments, etc.

So which accounting software do I recommend?

QuickBooks Online: QuickBooks online is my software of choice because it is the most used accounting software in the USA. That doesn’t necessarily make it the best but it does mean that there will always be a plethora of professionals trained on the software, constant software updates and improvements, and online resources like blogs, YouTube videos and even training courses to learn new features. It is quite user-friendly and the only software I will use for new clients.

What other options could a business owner check out?

FreshBooks: For folks with service-based businesses who do not ever intend to have inventory and who invoice clients directly out of their accounting software, you may want to explore FreshBooks! I do not work in FreshBooks, but I refer folks to Kate Johnson of Heritage Business Services – she’s quite the FreshBooks expert.

Xero: This is another popular choice. I honestly do not have much experience with Xero but may explore it further someday. I have heard the financial planning tools are preferable to some over QuickBooks.

Are you a nutritionist, coach, personal trainer, or outdoor industry small business owner who wants more guidance on which accounting software to choose? Let’s talk!