How to Choose What Bookkeeping Software to Use
Pre-S: Want to skip all this and just take the quiz I created to match you with your best-fit bookkeeping software? Click the link and in about 2 minutes you'll know which bookkeeping software is a good fit for you!
I get it, choosing a bookkeeping software can seem overwhelming (especially if money and finances aren’t your favorite thing to begin with!! So here’s a breakdown of what you should consider to find accounting software that works well for you.
#1. What are your current needs?
There are 3 main things to think about here.
Integrations (both software and banking/financial)
What other systems do you need your bookkeeping software to integrate with? Things like:
Etsy
Shopify
Square
Dubsado / HoneyBook / 17 Hats
Stripe
PayPal
Time tracking apps
Also, consider where you bank. The best part of bookkeeping software is that it (should hopefully!) sync automatically with your bank accounts, pulling in your transactions seamlessly. (This means no more data entry!!) So you want to be sure the bank you use integrates with the software you’re planning on using.
Complexity / User Experience requirements
Between the “big 3” accounting software (Quickbooks, Xero, and Wave), there’s a BIG difference in complexity, in how user-friendly they are for people who aren’t accountants or professional bookkeepers. So your willingness to dive into potentially complicated software will definitely impact your decision.
In general: Wave is easiest to learn, Xero is next, with Quickbooks being the most….shall we say… geared to the professional accountant.
Pricing
We all know pricing shouldn’t necessarily be the FIRST thing you look at when considering software (the saying of “you get what you pay for” does has some basis in reality, after all!), let’s be honest. If your business is brand new and you’re only bringing in a few hundred dollars a month (or even not bringing in anything AT ALL), even the lowest tier of Quickbooks – $30/month as of October 2023 – is pretty steep. So price is DEFINITELY a factor!!
In comparison, the lowest tier of Xero is $15/month as of October 2023, and Wave is, as always, free.
#2. What are your future needs?
So we’ve just laid out all your CURRENT needs. But what about your FUTURE needs?
I’m not talking 10 or even 5 years down the road - in my mind, planning that far out is, frankly, a waste of time! Instead, look down the road 1 - 2 years, max. Do you see your business changing in that time frame? Consider all three areas I mentioned above, SPECIFICALLY when it comes to systems you’ll be integrating with.
Because you sending an invoice or 5 each month is a WHOLE different ballgame than selling 3 or 4 digital courses along with a membership, in terms of what you’ll want your bookkeeping system to be able to handle. (In the BEST way possible, of course!)
So yeah, while it might be tempting to go with the free Wave software (I’m looking at MYSELF here, FOR SURE – I’m a notorious cheapskate!), if you know you’ll be branching out soon and need to integrate with Stripe, PayPal, or basically any other payment processor, you’ll be shooting yourself in the foot.
(While yes, it’s absolutely possible to switch bookkeeping systems, it’s best not to be penny-wise and pound-foolish.)
So how do you actually decide??!?!
Well, you’re in luck, because I created a free quiz to walk you through all this! You’ll answer some questions (all very straightforward) and in about 2 minutes you’ll be matched with your best-fit bookkeeping software. Easy as can be, and takes all the guesswork and overthinking out of the equation. So go ahead! Click the link below and get matched with your best-fit bookkeeping software!
