Want to get off QuickBooks for 2025, is manual bookkeeping a crazy idea?

Considering Moving Away from QuickBooks for 2025: Is Manual Bookkeeping an Option?

I assist my dad with Bookkeeping for his small, two-person construction business. Together with my brother, they take on side projects welding custom fences for a contractor, enabling them to earn a decent income. Currently, I’ve been using QuickBooks, but the cost is quite steep. Recently, I downloaded his statements into Excel to simplify the reconciliation process, which I found easier than using QuickBooks.

Given his straightforward transactions—comprising cost of goods sold (COGS), rent, revenue, and wages, with no capital expenditures, a bit of sales tax, and occasional mileage deductions—would it be unreasonable to manage the books manually with Excel? Are there simpler, cost-free, or easy-to-use alternatives for handling such straightforward financial transactions?

Switching from QuickBooks to manual Bookkeeping using Excel for a small and simple operation like your dad’s construction business isn’t necessarily a crazy idea, especially if the financial transactions are straightforward. Here are some considerations and suggestions to help you decide:

Advantages of Using Excel for Bookkeeping:

Cost Savings:
Excel is typically less expensive than QuickBooks, especially if you already have access to it through Microsoft Office or an alternative like Google Sheets, which is free.
Simplicity:
For businesses with simple financial processes and few transactions, Excel can be a more straightforward tool compared to the complexity of QuickBooks.
Customization:
Excel allows you a high degree of customization. You can set up your spreadsheets to suit the specific needs of the business without unnecessary features.
Control:
With Excel, you have full control over your data and how it’s organized and presented.

Challenges of Using Excel:

Time-Consuming:
Manual data entry and reconciliation can be time-consuming, especially if the volume of transactions increases.
Prone to Errors:
Manual entry increases the risk of errors in data recording, which can lead to issues with financial reporting or compliance.
Lack of Automation:
Excel lacks the automation features of QuickBooks, such as automatic bank feeds, invoicing, and report generation.
Limited Reporting:
While possible, creating detailed financial reports in Excel can be less efficient and more complex than using Accounting Software designed for that purpose.

Steps to Manual Bookkeeping with Excel:

Set Up Your Spreadsheets:
Create separate worksheets for different aspects of the business: income, expenses, sales tax, wages, and mileage deductions.
Use Templates:
Start with bookkeeping templates available online. These templates can increase efficiency and reduce the potential for errors.
Regular Updates:
Update your spreadsheets regularly to keep track of cash flow and expenses.
Reconciliation:
Reconcile accounts monthly with bank statements to ensure accuracy.
Backup Data:
Regularly back up Excel files to prevent data loss.

Alternative Solutions:

Free Accounting Software:
Consider free or less expensive software like Wave, which offers basic Accounting features for

One response

APAdmin

25 February 2025 at 7:46 PM
Switching from QuickBooks to manual Bookkeeping using Excel for a small and simple operation like your dad’s construction business isn’t necessarily a crazy idea, especially if the financial transactions are straightforward. Here are some considerations and suggestions to help you decide:

Advantages of Using Excel for Bookkeeping:
1. Cost Savings:
2. Excel is typically less expensive than QuickBooks, especially if you already have access to it through Microsoft Office or an alternative like Google Sheets, which is free.
3. Simplicity:
4. For businesses with simple financial processes and few transactions, Excel can be a more straightforward tool compared to the complexity of QuickBooks.
5. Customization:
6. Excel allows you a high degree of customization. You can set up your spreadsheets to suit the specific needs of the business without unnecessary features.
7. Control:
8. With Excel, you have full control over your data and how it’s organized and presented.
Challenges of Using Excel:
1. Time-Consuming:
2. Manual data entry and reconciliation can be time-consuming, especially if the volume of transactions increases.
3. Prone to Errors:
4. Manual entry increases the risk of errors in data recording, which can lead to issues with financial reporting or compliance.
5. Lack of Automation:
6. Excel lacks the automation features of QuickBooks, such as automatic bank feeds, invoicing, and report generation.
7. Limited Reporting:
8. While possible, creating detailed financial reports in Excel can be less efficient and more complex than using Accounting Software designed for that purpose.
Steps to Manual Bookkeeping with Excel:
1. Set Up Your Spreadsheets:
2. Create separate worksheets for different aspects of the business: income, expenses, sales tax, wages, and mileage deductions.
3. Use Templates:
4. Start with bookkeeping templates available online. These templates can increase efficiency and reduce the potential for errors.
5. Regular Updates:
6. Update your spreadsheets regularly to keep track of cash flow and expenses.
7. Reconciliation:
8. Reconcile accounts monthly with bank statements to ensure accuracy.
9. Backup Data:
10. Regularly back up Excel files to prevent data loss.
Alternative Solutions:
1. Free Accounting Software:
2. Consider free or less expensive software like Wave, which offers basic Accounting features for
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