lean-startup, accountingAs a new startup I’m looking to focus my energy in the business and generating sales. I don’t want to spend unnecessary money until I am earning sales and making adequate profit.
Is software like Quickbooks or QB Online necessary for a startup? I find it costly just to manage finances and to provide fancy invoices.
Is there anything wrong with using a spreadsheet for the first 6-12 months?
The answer to your question heavily depends of what accounting rules you have to adhere to with your business in your country. If some kind of “simple” bookkeeping is allowed, then maybe you can handle it with an Excel sheet - however if double-entry bookkeeping is a requirement then keeping the overview in Excel is probably more complicated than using a software. Maybe Gnu Cash would be a solution for you? It offers quite a lot of functionality and is completely free …
First of all, I would suggest speaking to accountant. As for an entrepreneur it shouldn’t be too difficult to find an accountant that would be willing to manage your finances for the first few months at a very low cost.
Smart accountant will tell you if he could manage your books with Excel or if you’ll need some kind of software. Usually accountants have their preferences and he should tell you what software would work best for both of you.
Accounting rules vary by countries or states and by the type of business you will do. Do not underestimate the accounting part of your business. You might run into trouble in the future if you misbehave with your books.
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