Originally posted on December 8, 2021 @ 12:27 pm
No matter what accounting software or other tools are employed There is a common consensus that you require a tool to manage the finances of small businesses. Based on the scope of your business or range of products and services, you might use Excel.
But, as we’ll discuss in the following section, there’s an opportunity to think about changing to a more complete bookkeeping program, such as QuickBooks. We’ll begin by with the beginning in spreadsheet programs. At first it were Lotus…
QuickBooks Overview
Intuit’s QuickBooks products are a complete accounting features, with built-in functions like billing, payroll and more. QuickBooks is constantly getting more advanced with new features being added.
It also has an easy-to-use interface, which means it doesn’t require you become an accountant to make use of the program and alter data inside it. Formulas are already integrated into QuickBooks, meaning you don’t need to come up with your own.
QuickBooks can also be customized. There are three distinct versions of QuickBooks and each one comes with its own specific subset of specific products for the industry or to meet particular needs. You’re bound to find an option that is specifically customized to your business’s needs.
Microsoft Excel Overview
The Microsoft Excel application is a spreadsheet program and an analysis tool that visualizes data that has been around since the 1980s.
Contrary to accounting software like QuickBooks, you’re in total control over your accounting system. You can create your own charts, reports, and queries and tools for data analysis. In this way, you can create a customized deep-dive analysis when you are familiar with the process. If not, it’s some time and trial before you can get the formulas you need right. Errors in calculation can also pop up during the process. There are, however, templates that can be downloaded so that you don’t need to begin with a blank slate.
Excel can be described as a self-service version of software. It is your responsibility as the accountant to figure out how to create Excel function for you. Excel may be a good choice for small-scale start-ups, however it’s not a good choice in the long run or for larger companies. Therefore, if your business isn’t large and you’re proficient in these areas, you can surely do the job using Excel.
QuickBooks & Excel: Similarities and Differences
- Flexible: QuickBooks has three different versions and specific features for industries. Excel provides you with total control over how you make your accounting ledger, and includes additional features to purchases.
- business size: Both are suitable for small businesses, however there are some limitations in this regard. QuickBooks is also suitable for small-sized companies, which means it can expand depending on the size of your company. Excel is ideal for small-sized start-up companies.
- Accessibility The two software applications can be accessed via phones, desktops tablet or mobile devices.
- Collaboration Based on the earlier point accessibility makes both products appropriate in remote collaborative. Both provide centralized working stations that collaborate via cloud-based functionality.
- Practice=Proficiency: Both QuickBooks and Excel require some learning and practice to become adequately proficient in the various functions and features that they offer.
Where QuickBooks excels over Excel Excel
QuickBooks can be more user-friendly, and performs much of the heavy lifting for accountants thanks to its numerous features built-in to it. The area where it excels over Excel but is its line of products that can meet a broad range of business requirements.
Its QuickBooks Desktop product has been in use since the 80s as an accounting tool that is trusted. It comes with basic functions like payroll, however it offers lesser functionality than QuickBooks Online products (see below). QuickBooks Desktop products may be cheaper if your business only requires basic accounting features, as they require a annual license fee, which is a lower amount than subscription costs for Online offerings. There are two kinds that are available for QuickBooks Desktop: Desktop Pro and Desktop Premier. Premier is a step higher than Pro since it permits the user to upgrade features as required depending on your specific industry.
The Intuit QuickBooks Onlineproduct is the most popular product in small and medium-sized enterprises. It is able to perform the fundamental tasks that all businesses require like invoicing as well as payroll (as an add-on option) as well as bookkeeping. Within this product class there are three subscription options, which are ranked in ascending order of their functionality and monthly price:
- Simple Start
- Essentials
- Online Plus
- Advanced
QuickBooks Enterprise is the most powerful of three due to the fact that it’s a cloud-based. Enterprise offers the best attributes that are available on Desktop and Online however, it can be accessed anytime any time, from any device with an authorized. Larger companies with multiple locations rely on Enterprise to manage their accounting requirements. Two additional add-ons are offered to Enterprise Advanced Inventory and Advanced Pricing.
Conclusion
Excel is a great tool when
- You’re knowledgeable about its many tasks
- You are familiar with manipulating the data by using formulas and formulas within Excel and
- You’re running a tiny firm, such as an online store from your basement.
However, it’s a generic type of product that’s not as customizable as the other products Intuit’s QuickBooks offers. QuickBooks is available to every person regardless of whether or not you’ve had a accounting background. QuickBooks can also manage the expansion that your business is expected to experience. And who does not think about growing their company? Excel is like a set of training wheels however, when your business expands it will be the training wheels that stop you from progressing and you’ll have to upgrade to more advanced program, like QuickBooks.
