If you're a small business owner or freelancer trying to figure out how to manage your finances, one of the first decisions you'll face is which tool to use. QuickBooks is the name most people recognize, but a spreadsheet is something almost everyone already has. So which one is actually right for you?
The Case for QuickBooks
QuickBooks is purpose-built accounting software designed to handle everything a growing business needs — invoicing, expense tracking, bank feeds, payroll integration, and financial reporting. Once set up, a lot of the day-to-day recording happens automatically through bank connections.
QuickBooks is the right choice if you:
- Have consistent monthly revenue and a significant number of transactions
- Invoice clients regularly and need to track payments
- Have employees or contractors to pay
- Work with a bookkeeper or accountant (most use QuickBooks)
- Need detailed financial reports for business decisions or lenders
The tradeoff is cost. QuickBooks Online runs between $35–$99/month depending on the plan.
The Case for Spreadsheets (Excel or Google Sheets)
Excel is flexible, familiar, and free if you already have Microsoft Office. If you don't, Google Sheets is a completely free browser-based alternative that requires no software installation and works just as well for basic bookkeeping. Most Excel templates are compatible with Google Sheets with little or no adjustment.
A spreadsheet-based approach is a smart choice if you:
- Are a freelancer, side hustler, or sole proprietor with low transaction volume
- Are just starting out and want to keep overhead low
- Don't need invoicing software or payroll features
- Are comfortable with spreadsheets and prefer full control over your records
The tradeoff is that spreadsheets require more manual input and discipline. They won't connect to your bank automatically, but with the right template they can absolutely do the job for a simple operation.
The Hybrid Approach
Some business owners start with a spreadsheet when they're small and transition to QuickBooks as they grow. Starting simple and upgrading when the complexity warrants it is smarter than paying for features you don't need yet.
Need a Starting Point?
If you're going the spreadsheet route, a professionally designed template makes a big difference. I offer bookkeeping templates in my Etsy shop — built for freelancers and small business owners who want clean, easy-to-use records without the QuickBooks subscription. Browse templates at Balanced Decimals →
If you found this helpful and have questions about your own tax or bookkeeping situation, I'd be happy to help. Reach out here and I'll get back to you within one business day.