There are so many bookkeeping software programs to choose from.
If there’s one thing we can all agree on it’s that technology has made our lives easier.
There was a time when doing your books was done with color-coded pens and tons of paper.
Then we moved to Excel, which to this day, many are still using that wonderful Microsoft program to handle their books.
If you are doing your own books, choosing the right bookkeeping software is very important especially if your business requires a lot of upkeep.
Bookkeepers also have a choice to make: Choosing the right bookkeeping software to handle their client’s books.
Many will agree today that QuickBooks and Xero are the most talked about and most used bookkeeping software applications today.
There’s no denying it, they’ve been around for a while and they’ve done a pretty good job at marketing these programs as DIY tools.
With that said, how do we make sure we’re choosing the right bookkeeping software?
We’re going to review 3 ways a bookkeeping software can make or break your business.
Excel
There is no doubt about it, Excel is one fascinating program created by Microsoft. Excel is still widely used for different purposes.
One of these purposes is bookkeeping. Even though many are using this program for bookkeeping and they love it, we have to admit that there are limitations.
You see, Excel only does what you tell it to do, it doesn’t know that you are doing your books, all it knows is that you’re crunching numbers and it’ll obey your commands.
Let’s review some pros and cons
So, no doubt about it, you can get away with handling your books with a bookkeeping software like Excel but keep in mind that this program will have its limitations.
We’re going to say that this method will break your business, why?
It’s hard to imagine small businesses today relying on excel to manage their books.
Take a small retail store for example. How will this small business owner track income, expenses, vendor payments, inventory efficiently?
Sure, one can argue that it is possible, but the one thing Excel cannot do is catching human errors. It’ll catch grammar mistakes, or it’ll return errors if your formulas are wrong, but it won’t catch bookkeeping mistakes.
Bookkeeping software applications
In today’s day and age, many are relying on do-it-yourself tools to manage their books. With programs like QuickBooks and Xero, it’s easy to see why so many have used or are continuing to use these applications.
Will using this method Make or Break your business?
Well, it depends on how you look at it. If you’re a savvy small business owner and you know your way around technology, this method is definitely for you.
Over the years, we’ve seen these applications introduce many wonderful updates to make managing your books seamless.
Some features have gone as far as linking your bank accounts, so you won’t have to wait for your bank statements at the end of the month.
Downloading reports are definitely useful especially when you’re trying to get information regarding your business or to provide information to your accountant when it’s time to file for your taxes.
So why is an online bookkeeping company like miplly talking about the competition? Well, you see, we don’t see them as our competitors.
We were created for the entrepreneurs who didn’t want to deal with their books and pay a lot of money to hire a bookkeeper. We’re essentially virtual bookkeepers, an extension of your finance team.
But back to the subject, will this method break or make your business? We say it’ll make your business.
There are so many wonderful features, and you can visit their sites for more information.
But it must be reiterated that this method will only make your business if you actually know what you’re doing.
If you have some knowledge about bookkeeping or principles of accounting, using bookkeeping software programs like QuickBooks or Xero won’t be a big deal.
Where it’ll start becoming a problem is when you have no idea what you’re doing and when you’re not updating your books as often as you should, then you’ll run into issues.
Where things get even worse is, there are monthly fees associated with using these applications. So, if:
a) you’re not using the applications on a regular basis
b) you are not sure about what you’re doing
c) you’re always behind on your books
Then this method will break your business, 100%!
Online Bookkeeping Services
This is by far the easiest way to handle your books, how so?
Well, using online bookkeeping services pretty much means you don’t have to do a thing, all you have to do is focus on running your business and let someone else handle your books?
Wouldn’t it be the same as hiring a bookkeeper? Well no, because hiring a bookkeeper on staff means you have to add someone on the payroll.
So how will this method make or break your business?
It’s hard to see how this method will break your business, honestly! Let’s take a look at how?
Since you don’t have to handle your books, someone else will take care of that for you as we mentioned previously.
Now, how will you be able to keep track of your books?
As we saw, QuickBooks and Xero are great tools, but they were mainly built for you to be able to handle your own books, whereas an online bookkeeping service, will not only handle your books, but you’ll also have the opportunity view and review the progress of your virtual bookkeeper.
Let’s take miplly for example. We provide a simple bookkeeping software for our customers to track and review the work of their assigned bookkeepers.
You won’t have or will need to enter anything in terms of transactions. Once you log in, all you have to do is link up your bank accounts and we’ll do the rest.
Now, if you have one of these plans where you need us to be a little more involved, like creating invoices or sending them on your behalf, all we will need you to do is tell us who to invoice, and we’ll do the rest.
You can even handle your employees. Simply give us the information and we’ll take care of the rest for you.
Our software was built for the customers looking for a clear, simple and easy way to navigate through this complicated thing they call bookkeeping.
So, will this method make or break your business? We say it’ll make your business.
There are many advantages to having someone else handle your books but more importantly, you’ll have access to a bookkeeping software that you don’t have to maintain.
What other bookkeeping software applications or methods you think will make or break your business? Please let us know in the comment section.
