HACKER Q&A
📣 johntiger1

Why can't I use Google Sheets for my accounting (as a startup)?


Seems like it has all the features for double entry accounting for a startup. Don't see why we need some expensive business software


  👤 coderintherye Accepted Answer ✓
It's not that you can't. You can use vim for your accounting if you want.

But these tools save you time for a tiny amount of money. You don't need something expensive, any startup should be able to afford $10/mo for Xero ( https://www.xero.com/us/pricing-plans/ ).


👤 wsh
You could also use memorandum, journal, and ledger books, just as Pacioli taught in 1494, but why waste your limited time and attention on a problem for which you have a choice of good, off-the-shelf solutions at modest prices? (Think QuickBooks, not SAP.)

As your startup grows, you’ll engage an accountant and hire a bookkeeper or business manager, who will expect to work in the traditional accounting cycle. You’ll also need to produce the usual reports and financial statements for your bankers, investors, or a potential acquirer’s due diligence team.

Using software designed for the purpose makes all this easier and more reliable. It also conveys that your company is serious about its business: investors want to take a risk on your technology, market, and execution, not on whether your homebrew accounting system can generate an accurate cash flow statement.


👤 ian0
Because you have a tonne of work to do to make your startup succesfull and dedicating time to re-inventing a wheel will detract you from it.

It also means you waste future-you's time too. For example when you want to integrate apps into your books (sheets is not reliable at scale), when you want to train a junior accountant to look after your books. When you want have to send a copy of financial statements to banks/tax-offices/investors whatever and they are used to a particular format.



👤 ano88888
because there are many open source or very low cost basic accounting software availabe. Sharpen your saw.