Considering a Move from QuickBooks: Is Manual Bookkeeping via Excel a Viable Option for 2025?

I assist my dad with Bookkeeping for his small, two-person construction company. Together with my brother, he takes on side projects, crafting custom fences for a contractor, which thankfully supports a decent wage for both. We’ve been relying on QuickBooks, but the cost is becoming a concern.

Recently, I experimented with downloading statements into Excel, finding it more intuitive than QuickBooks for reconciling items. This has made me ponder whether managing the books manually through Excel is a feasible strategy. The transactions are fairly straightforward, involving cost of goods sold, rent, revenue, and wages, with no capital expenditures. There are minor sales taxes and a mileage deduction, but nothing too complex.

Would it be unreasonable to handle such uncomplicated transactions manually in Excel? Alternatively, is there a free or easier method available for managing very simple Bookkeeping needs?

Deciding whether to move away from QuickBooks to manual Bookkeeping using Excel, or another alternative, can be a challenging decision, especially when you want to maintain simplicity and accuracy. Here’s a detailed analysis to help you make an informed decision:

Benefits of Manual Bookkeeping via Excel

Cost Savings:
Affordable: Excel is much cheaper than QuickBooks, especially if you already have it or use Google Sheets, which is free.
Simplicity:
Customizable: You can create worksheets tailored to your specific needs, such as different sheets for revenues, expenses, COGS, etc.
Familiarity: If you’re already comfortable using Excel, it might be more intuitive than QuickBooks.
Control:
Direct Control: You have full control over the data, formatting, and calculations, which can be beneficial if you’ve found it easier to manage some tasks through Excel.

Challenges of Using Excel for Bookkeeping

Manual Errors:
Error-Prone: More prone to errors due to manual data entry, especially if transactions increase or become more complex over time.
Time-Consuming:
More Laborious: Manually entering all data can be time-consuming, especially during tax season or financial reporting periods.
Lacks Advanced Features:
Missing Features: Excel lacks accounting-specific features like double-entry Bookkeeping, automatic reconciliation, and error-correction mechanisms.

Exploring Free or Low-Cost Alternatives

If you decide against using Excel for manual bookkeeping, consider these alternatives:

Wave Accounting:
Free: Wave offers free Accounting Software tailored for small businesses. It includes features like invoicing, receipt scanning, and basic Accounting.
User-Friendly: Designed to be intuitive, and it integrates well with bank accounts for easy transaction management.
Zoho Books:
Affordable: Offers a free plan for small businesses with basic Accounting needs and affordable paid plans with more features.
Extensive Features: Includes automation for invoices and expenses, which could save time.
GnuCash:
Open Source: A free open-source Accounting Software that supports double-entry bookkeeping.
Advanced Features: Offers functionality for small businesses while remaining adaptable.

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One response

APAdmin

26 February 2025 at 2:24 PM
Deciding whether to move away from QuickBooks to manual Bookkeeping using Excel, or another alternative, can be a challenging decision, especially when you want to maintain simplicity and accuracy. Here’s a detailed analysis to help you make an informed decision:

Benefits of Manual Bookkeeping via Excel
1. Cost Savings:
2. Affordable: Excel is much cheaper than QuickBooks, especially if you already have it or use Google Sheets, which is free.
3. Simplicity:
4. Customizable: You can create worksheets tailored to your specific needs, such as different sheets for revenues, expenses, COGS, etc.
5. Familiarity: If you’re already comfortable using Excel, it might be more intuitive than QuickBooks.
6. Control:
7. Direct Control: You have full control over the data, formatting, and calculations, which can be beneficial if you’ve found it easier to manage some tasks through Excel.
Challenges of Using Excel for Bookkeeping
1. Manual Errors:
2. Error-Prone: More prone to errors due to manual data entry, especially if transactions increase or become more complex over time.
3. Time-Consuming:
4. More Laborious: Manually entering all data can be time-consuming, especially during tax season or financial reporting periods.
5. Lacks Advanced Features:
6. Missing Features: Excel lacks accounting-specific features like double-entry Bookkeeping, automatic reconciliation, and error-correction mechanisms.
Exploring Free or Low-Cost Alternatives

If you decide against using Excel for manual bookkeeping, consider these alternatives:
1. Wave Accounting:
2. Free: Wave offers free Accounting Software tailored for small businesses. It includes features like invoicing, receipt scanning, and basic Accounting.
3. User-Friendly: Designed to be intuitive, and it integrates well with bank accounts for easy transaction management.
4. Zoho Books:
5. Affordable: Offers a free plan for small businesses with basic Accounting needs and affordable paid plans with more features.
6. Extensive Features: Includes automation for invoices and expenses, which could save time.
7. GnuCash:
8. Open Source: A free open-source Accounting Software that supports double-entry bookkeeping.
9. Advanced Features: Offers functionality for small businesses while remaining adaptable.
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Want to get off QuickBooks for 2025, is manual bookkeeping a crazy idea?

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