Searches for the best small business bookkeeping software have climbed sharply in Massachusetts over the past year. It makes sense: owners are reconsidering old setups, older QuickBooks Desktop versions are losing support, and there are more options than ever.
Here is how we think about the question after more than two decades of keeping books for owner-run businesses on the South Shore and beyond.
The honest answer: setup matters more than software
The most common problem we see is not the wrong software. It is the right software set up the wrong way. A chart of accounts copied from a template, bank feeds accepted without review, and accounts that have never been reconciled will produce bad numbers in any program.
So before comparing products, know what you need the software to do.
What to look for
1. A chart of accounts you can shape
Your software should let you build categories that match how your business actually runs: materials and subcontractors for a contractor, supply and lab costs for a dental practice, client cost reimbursements for a law firm.
2. Reliable bank and card feeds
Transactions should download automatically, and you should be able to reconcile each account to its statement.
3. Real reports
At a minimum: a profit and loss, a balance sheet, and a statement of cash flows, with the ability to compare periods and filter by location, class, or project.
4. Access for your bookkeeper and CPA
Your bookkeeper and CPA should each have their own login, with no files emailed around.
5. Room to grow
A second location, a new entity, more employees, or job costing should not force you to start over.
6. A large community of professionals who know it
If something goes wrong, you want plenty of experienced people who can fix it.
Your software checklist
Tick each one your software does well.
0 of 6 covered
Why we use QuickBooks Online
For most owner-run businesses, QuickBooks Online checks every box above, and it is our software of choice for monthly bookkeeping. Liliane Larsen is an Advanced QuickBooks ProAdvisor.
What it does well: - Access from any device, which suits owners who work in the field or between locations. - Accountant access, so your bookkeeper and CPA work in the same file you do. - Classes, locations, and projects for reporting by department, site, or job, depending on your plan. - A large library of connected apps.
Where to be careful: - Plans differ in what they include, so match the plan to your needs. Some features, such as projects, are only in certain plans. - Reports can calculate differently from QuickBooks Desktop. If you are migrating, compare the reports you rely on.
What about free or very low-cost tools?
Simple tools can work for a very small business with a handful of transactions. Once you have employees, loans, several accounts, or a CPA who needs clean year-end books, most owners find they outgrow them.
The part software cannot do
Software records transactions. It does not tell you whether they are right, whether a bill was paid twice, or why your profit and your bank balance disagree. That takes a person who reconciles the accounts, reviews the reports, and explains them.
That is what monthly bookkeeping adds. Our clients get the books kept current in QuickBooks Online, reports on an agreed schedule, and a review conversation about what the numbers mean.
Frequently asked questions
For most owner-run businesses, yes, with a careful migration. We handle migration from Desktop to Online end to end, as the start of monthly bookkeeping.
A QuickBooks evaluation answers that: a review of your file and a findings call about what is working and what is not.
Yes. Training is hands-on, online, in your own file.
Start with a conversation
If you are choosing software for a business in Massachusetts, or wondering whether your current file is set up right, request a free consultation. Prefer to call? 781-924-1489.