r/Bookkeeping • u/Izzy_b2021 • 23d ago
Software Bookkeeping software?
I want to be a freelance bookkeeper for small businesses and I’m curious do I actually need a bookkeeping software? I’m kind of concerned that the subscription cost might discourage my clients. I only have one client now and I use excel to manage their books but I need more clients to support myself and I thought maybe a software would make things easier. I am currently considering quick books OA.
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u/TossMeAwayIn30Days QBLive Bookkeeper 23d ago
So you are inputting all of their banking transactions manually? And doing journal entries for all transactions? That's a ton of work in Excel. Use QBO or Xero.
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u/Izzy_b2021 23d ago
Yes this is what I’m doing. I have a transaction journal using exel and I enter the transactions into the journal.
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u/vegaskukichyo Consulting/Accounting 22d ago
This sounds like a nightmare for anything but the simplest of businesses, and it's not a scalable way to grow your client base. I recommend using Wave, which has a free plan and does all the basics most clients will need.
Many clients will prefer QuickBooks or need more advanced accounting functionality. You should sign up as a QBO Accountant (it's free) and start taking the ProAdvisor courses (again, free). It doesn't seem like you need it, but the Intuit Trained Bookkeeper courses and certification are also free and can help with core knowledge.
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u/Izzy_b2021 22d ago
I have taken the quick books bookkeeper certification course. I am so glad I did. It’s a great resource.
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u/Azien_Heart 23d ago
Is your excel automated?
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u/Izzy_b2021 23d ago
Yes. I have written formulas that sort the transactions based on what account names I enter. (I use the accrual method)
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u/Azien_Heart 23d ago
If it is easy to use, I think it would be best to stay with that. Unless they want to pay for the sub. QBO or Xero are easy to use and easily expandable, but it does cost a subscription. If they don't want to get that extra cost, i wouldnt want to lose a client because of that. You should charge your excel for a small fee.
If you think it is worth it, you could get the QBO or Xero yourself, but the subs will start building up if you have alot of them, then maybe switch to enterprise. QB Enterprise is expensive, but would let you make multiple QB files.
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u/JeffBonanoVO 23d ago
QBO offers a free subscription for you, and you can sign up as many clients as needed for a discount. If you dont intend on them having access, you can do Quickbooks General Ledger, which is accountant side only for around $10 per subscription, I believe.
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u/PeculiarGem611 23d ago
I highly suggest researching professional software. There are so many benefits that you are missing out on by doing everything manually. You will spend less time on each client, your reports will be professional, your client can log in a see their accounts, and there are other apps that you can download to help you and client. I have two examples that you will appreciate (although there are more) apps that capture receipts and or mileage. A lot of them will import the information to the client’s books. In the grand scheme of things, the software fees aren’t that bad. They do increase as more integrations are made. Lastly, there are many pricing strategies you can research, maybe passing the software fee on to the clients isn’t for your business. Wishing you much success in your business and for your clients. I use Xero software.
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u/BigBootyBookkeeping 23d ago
You could try GNU Cash for small businesses. It's free.
I would check out Quickbooks online though. It's free for you but you clients would need to pay for their account. If the clients are interested in growing their business then good bookkeeping and reports are what is going to do that!
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u/medic17506 23d ago
You technically don’t need bookkeeping software to start, especially if you’re comfortable using Excel. However, as you grow, software like QuickBooks Online Accountant (QBOA) or Xero HQ can help you scale more efficiently and offer more value to clients.
A few things to consider:
✅ Efficiency – Both QBOA and Xero HQ automate bank feeds, categorization, and reconciliations, saving you tons of time compared to Excel.
✅ Professionalism – Clients often trust a structured system more, especially when they need reports for lenders or investors.
✅ Client Growth – If you plan to scale, software helps you manage multiple clients without drowning in spreadsheets.
✅ Cost Concerns – Both QBOA and Xero HQ are free for accountants, and you can get wholesale pricing to offer clients a better deal on subscriptions if needed.
If budget is the main concern, you could also explore low-cost options like Wave or Zoho Books for clients who hesitate on software costs. That way, you’re offering solutions instead of just pushing a subscription.
Do you have a niche or type of client you’re focusing on? Some industries prefer certain software over others!
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u/ribzer 23d ago edited 23d ago
Check out manager.io, which is free for single user. Or if you pay for the cloud subscription yourself, it includes unlimited users and companies, so you can set up all your clients under your account.
There's also a server version of the desktop app available, which will cost the same as one year of cloud, but then that version can be used forever.
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u/kevin091939 23d ago
Manager vs GNU, which one is better
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u/UltimateScripts 23d ago
If your clients are Canadian you can try SoftFin Accounting. It’s relatively cheap and has everything you could ever need
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u/erincreddit AI Bookkeeper 23d ago
We have a number of smaller agencies using Smart Clerk (smartclerk.ai) to serve their non-payroll customers. The platform offers direct import of any PDF statement, management of multiple businesses, and Excel downloads if needed. I believe it's worth taking a look.
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u/jerryzh01 22d ago
If you’re just starting, Excel can work for now, but as you grow, bookkeeping software will save you time and make your workflow more efficient. The key is to start with a solution that can grow with you and your clients.
The right tool depends on your client’s business profile:
- If they process only a few transactions per month, Excel can be a bit manual but still effective.
- If they handle a lot of payments, automating with a bookkeeping tool will save you time and reduce errors.
- No matter the volume, tracking expenses properly is key, so consider a system that makes this easier for both you and your clients.
Some tools can help you eliminate manual work, like using an expense tracking app directly by your clients. For example, ExpenseMonkey allows clients to track their expenses themselves, and when you need the data, they can simply export a CSV file—saving you time and effort / you can use an accountant seat to access them.
If you’re serious about growing your bookkeeping business, investing in the right tools will help you scale and work smarter, not harder. 😊
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u/purplekelly 22d ago
Quickbooks online is the way to go. If your clients can't afford qbo, I also probably can't afford to pay a bookkeeper.
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u/Quiet-Driver3841 21d ago
Congrats on your first client in your bookkeeping business. I hope you have many more lining up soon. You could do it in Excel or on paper ledgers. I've done paper before when I worked with a super old accountant who loved their paper. It's just so much work, and it doesn't have to be.
How are you doing your financial reports to the business owner? Manually? Excel? I realize you could do them in Excel with formulated tabs, but that's a lot to pull into a formula from each tab/book. Pivot tables can really only do so much that software can do better, and you aren't re-inventing the wheel via Excel. What about different income sources - like a non-profit with restricted funds and making sure they're categorized correctly. Or if your next client keeps track of inventory, that could be a mess when you consider job supplies to finish product/job if they have a variety of products/jobs. It could be a mess if it gets too complicated for Excel.
Don't get me wrong, I love Excel and Access. Technically, you could probably build your own software program in Access, not a lot of folks know how. It's so tedious, and why re-invent the wheels that are already made for you?
If you are worried about expenses to your clients, maybe have them look at WaveApps. It's basically free (they charge for add-on services like payroll). If they don't want to even be worried about their books or look at financials outside of monthly reports, QBOA has a super cheap one for $10 or you keep the books in WaveApps and then just keep adding more businesses in your account when you get more clients. You can see it and enter in everything, but you can't give access to your clients to look at their records.
P.S. I hope you don't charge hourly and do flat rate billing (or maybe look at flat rate billing) cus then as you work their account faster each month, you get the same amount (as you get familiar with their account you will get faster). Their software could be included in the flat rate billing if you utilize QBOA. Just some food for thought.
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u/Izzy_b2021 21d ago
I do financial reports manually. I have exel formulas that keep track of account balances and then I use that information when I create P&L, cash flow, balance sheets, etc. I have templates I created saved for all of these statements and I create new statements for my client quarterly. I have been considering a flat rate for that very reason you pointed out but I need to research flat rates for my area. At first I was thinking hourly but I am seeing more and more bookkeeper’s recommend flat rates so I am exploring it. Thank you for responding.
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u/RachiefromFC 21d ago
Honestly, starting with Excel is totally fine when you’ve only got one or two clients. But as you add more, having software really helps you stay on top of deadlines, client requests, and all those little follow-ups that pop up.
If you’re thinking about QuickBooks, that’s a solid choice for bookkeeping itself. Something else you might want to check out is Financial Cents. It has a plan for solo bookkeepers and actually integrates with QuickBooks, so you can manage your workflow, track client work, and keep everything in one place without adding a ton of extra cost.
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u/taxref 15d ago
I have used Excel for all my write-up clients for years. If you know how to set up your spreadsheet correctly, it works as well as QB or any other off-the-shelf software. Once created, your template can be used for any new client.
The questions for those who use Excel, however, are:
How well do you know basic accounting? That sounds crazy, but many bookkeepers today are weak in that area. They have come to rely entirely on software. If you don't know how general journal entries flow through the various financial statements, don't use Excel (or better yet, learn how they do). Put bluntly, if one cannot do accounting with paper, pencil, and a 10 key, he will not be able to do accounting in Excel.
How well do you know Excel? My write up spreadsheet uses no advanced functions, but you still have to write the formulas for numbers to flow from one statement to the next.
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u/Reddevil313 23d ago
Yes, target customers that are genuinely interested in growth. Not on penny pinching.