Spreadsheets vs. Software: When to Take the Leap
Bookkeeping is non-negotiable—we all know that. But how you do your bookkeeping? That's your business.
Maybe you use QuickBooks because your mom used QuickBooks (guilty 🙋♀️). Maybe you've tried one of the dozens of other software options out there. Or maybe, just maybe, you're a spreadsheet girly through and through.
And if you are? I get it. But here's the thing about being a spreadsheet girly: at some point, a formula will accidentally get deleted and your whole system will break. Then it's 10:30 PM on a Tuesday, you're frantically clicking through all seven tabs of your beautiful, organized system, and you have absolutely no idea where you went wrong.
Sound familiar? Yeah, I thought so. Ask me how I know.
Spreadsheets: You're Not Doing It Wrong
Let me be clear: spreadsheets are not the enemy. I love a good spreadsheet, they’re a perfect starting point for many businesses. They're free, straightforward to use, and honestly? Most successful businesses started exactly where you are right now.
After a while, your spreadsheet becomes comfortable and familiar. It fits your business like a glove. You know every cell, every formula, every quirky workaround you've ever created. There's something to be said for that level of intimacy with your numbers.
But here's the big question that keeps me up at night (okay, not really, but you get the point): Is your spreadsheet actually serving your business, or are you serving your spreadsheet?
Because while spreadsheets are great for storing information, they're not really great at giving you insights. They don't have built-in checks and balances to catch your mistakes. And they definitely don't warn you when you're about to delete that one crucial formula that holds everything together.
Signs It's Time to Consider an Upgrade
Time-Based Red Flags:
You're spending more than 2 hours each week just entering data
Monthly reconciliation either feels impossible or takes your entire Saturday
You dread opening your spreadsheet (hello, pit in stomach!)
Your system has become so complex that you're the only one who understands it. It’s undelegatable.
You're avoiding bookkeeping altogether because the thought of opening that spreadsheet feels impossibly overwhelming.
Error-Based Red Flags:
You've had formulas break and couldn't figure out how to fix them for hours, if ever
You've accidentally deleted important data… we've all been there
You've found discrepancies but can't trace where exactly they came from (is this a spreadsheet or a labyrinth?)
You're keeping multiple versions of the same file and aren't sure which one is current
You've spent hours looking for a mistake that turned out to be a small typo
Growth-Based Red Flags:
You have multiple income streams that don't fit neatly into your original setup
You need professional reports for loan applications, investor meetings, your accountant, or grant applications
Your business has grown, but your spreadsheet hasn't kept up
You're manually creating reports that feel like they should just exist somewhere with a single click
The "I Need Help" Red Flags:
You want your VA or team member to help with bookkeeping, but sharing your spreadsheet feels risky, one wrong click and everything falls apart
You're emailing files back and forth and losing track of versions
You need real-time access from your phone, but spreadsheets and mobile don’t mix well
Your accountant keeps asking for information you either can’t find or in formats your spreadsheet can't easily provide
What Software Actually Does Better (And What It Doesn't)
Let's be honest about this: software is not magic. It's not going to solve all of your bookkeeping problems. But here's what it can do:
The Real Benefits:
Automatic bank connections: Your transactions import themselves
Built-in error checking: It’ll tell you when something doesn't add up
Professional reports: Balance sheet, profit & loss, and cash flow reports at the click of a button (which are key for strategy & growth)
Time savings: What takes 3 hours in a spreadsheet might take 1 hour in software
Mobile access: Check your numbers while you're waiting for your latte
Automatic backups: No more "oh shit, I deleted everything" panic attacks
The Trade-offs (Because I'm Not Going to Lie to You):
Monthly cost: QuickBooks is expensive, y'all. It is genuinely expensive. Even with wholesale discounts, the good accounting softwares aren’t cheap. And if you’re spending the money, you may as well pick a good one.
Learning curve: It will feel overwhelming at first, like learning a whole new language
Less customization in some ways: You can't make it do exactly what your spreadsheet did. Those little notes and workarounds? Not always possible
Data migration: Getting your existing data in can be tedious, but it's a one-time pain. (Pro tip: you can also just finish out the year in your spreadsheet and start fresh in your next fiscal year)
Making the Decision
Ask yourself these questions:
Time: How many hours per week do I currently spend on bookkeeping?
Growth: Where do I want to see my business in the next year?
Stress: On a scale of 1-10, how much stress and anxiety does my current system create?
Focus: If my bookkeeping was more efficient, what could I accomplish with that extra time back in my week?
If most of your answers point toward "something needs to change," then it's probably time to upgrade your tools.
Real Talk
Your spreadsheet got you this far, and that's not nothing. But if you're reading this post, there's probably a part of you that knows it's time for something different. Something's gotta give.
Whether that's upgrading to software depends on your business, your budget, and your capacity. But whatever you choose, make sure it's serving your business goals, not the other way around.
The goal isn't to have the perfect system. The goal is to have a system that works for you, gives you the information you need to make good decisions, and doesn't make you want to hide under your desk every time you need to check your numbers.
If you're ready to move beyond spreadsheets, I'd love to help you figure out what actually makes sense for your business - or set you up with a custom system through my DIY Software Setup & Training.
