Excel Bookkeeping Templates offer a simple and accessible way to manage basic accounting tasks using Microsoft Excel. They’re easy to use and highly adaptable—most spreadsheets can be tailored to suit your specific needs. For tracking day-to-day financial records, they can be a reliable solution.
However, while Excel may suffice for basic bookkeeping, it often falls short when it comes to comprehensive reporting and integration—especially for small business owners. Dedicated accounting software brings together all financial processes in a single, streamlined package, offering automation, accuracy, and scalability that Excel simply can’t match. In many cases, it can save both time and money.
The example below highlights the clear advantages of using accounting software over Excel templates—particularly when efficiency, insight, and growth are on the agenda.
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Pros and Cons of Excel Bookkeeping Templates
Pros
- Easy to use and keep company records
- Free downloads
- Already familiar with Excel
Cons
- Will not grow with the business
- Limited to the number of transactions
- Easy to make mistakes
- Not Double Entry Bookkeeping
- Limited Chart of Accounts
Pros and Cons of Accounting Software
Pros
- All Integrated, including sales invoices
- Will grow with the business
- Saves time and money
- Full instructions and support
- Accounting reports available
- Collaborate with a bookkeeper or accountant
- Double Entry Bookkeeping
- Full Chart of Accounts
Cons
- Price, although some are free
- It may take a while to learn
- It can be hard to get started
- Lots of packages to choose from
QuickFile
QuickFile is completely free for up to 1000 ledger entries per year.
Automated bank feeds are an additional £15 + VAT per year, but not everyone needs to use bank feeds.
Features and pricing
QuickFile free accounting software’s main features include:
- Trustpilot reviews score 4.8 out of 5
- Up to 1000 Nominal transactions free
- Capture receipts within the App
- Quickly send estimates and turn them into invoices once approved
- Invoice any currencies
- Online payments using Stripe
- Automatic payments
- VAT returns track and file
FREE for up to 1000 ledger entries
- Professional invoice
- Fully branded client area
- Purchase/Receipt management
- Banking automation
- MTD-compatible VAT returns
- Estimates/Quotations
- Full multi-currency support
- Reporting
£60 + VAT per year for 1001 or more ledger entries
Extras include:
- Over 400 integrations
- No adverts
- Advanced customisation
- Segmented profit & loss
- Custom trading styles
- Invoice revision history
- Sent email log
- Enhanced bulk invoice entry
- Keyboard shortcuts
- Custom client email templates
- VAT budget – MTD ready
ALL plans include:
- Free unlimited users
- 2-factor authentication
- Regular free updates
- Free 1 GB file storage
- No setup fees or contracts
- Automated backups
- API access
- Year-end tools
- No software to install
Pros and Cons of Quickfile
Pros
- It’s FREE, and you only need to pay for bank feeds or over 1000 Ledger entries
- Unlimited users, so you won’t need to pay to add accountants, partners, etc.
- The QuickFile accounting and bookkeeping software has multi-currency support
- Receive online payments via Stripe
- QuickFile comes with complete invoicing and accounting tools
- Online community for support
Cons
- You could go over the 1000 nominal transactions and have to pay £60 + VAT per year
- Advertisements within the software can be annoying
- Reports are limited (hard to do month-to-month comparisons)
Sage 50cloud Accounts
Sage 50cloud Accounts helps in the following areas: taxes, banking, and management. It combines the convenience of the cloud with the power of desktop accounting software, giving you a complete view of all your business finances in one place.
Features and pricing
Sage Business Cloud Accounting – Free for 1 Month
An easy-to-use online accounting solution, ideal for sole traders and small businesses. Accessible from any device, anywhere.
Key Features:
- Ready for Making Tax Digital (VAT)
- Track cash flow, income, expenses, and payments
- Create and send personalised invoices and quotes
- Set up recurring invoices
- Automatic bank reconciliation
- Submit VAT and CIS directly to HMRC
- Unlimited users
- Advanced financial reports
- Inventory management
- Multi-currency support
- Snap receipts with AutoEntry (2 months free)
Sage 50cloud Standard – From £92 +VAT/month
A desktop accounting solution for small businesses, with tools to manage invoicing, cash flow, and more.
Key Features:
- Sage Business Cloud Accounting plus:
- Apply automatic discounts to invoices
- Set up recurring invoices and transactions
- Bank reconciliation made easy
- Calculate and submit VAT to HMRC
- Add extra users (fees apply)
- Submit CIS returns (fees apply)
- Create custom reports
- Track and manage inventory
- Handle multiple companies, departments, and budgets
- Invoice and trade in foreign currencies (fees apply)
Sage 50cloud Professional – From £186 +VAT/month
A powerful desktop accounting solution with advanced tools for stock control and reporting.
Key Features:
- Sage 50cloud Standard plus:
- Custom pricing and discounts for each contact
- Create and manage sales and purchase orders
- Set up recurring invoices and transactions
- Advanced inventory tracking
- Trade and invoice in multiple currencies
Pros and Cons of Sage 50cloud
Pros
- Strong security: with user access controls and automatically closes out income and expenses at year-end. Prior-year data is easy to retrieve, and closed periods stay locked for accuracy.
- Robust reporting: monthly, quarterly, annual statements, plus custom reports via Excel or Crystal Reports
- Customisable data: tailor customer, vendor, and employee info—even track birthdays
- Flexible invoicing: standard A/R and A/P templates with options for case-by-case edits
- Inventory management: once set up, it provides detailed reports to monitor stock and performance
Cons
- Powerful but Complex: Sage 50 offers robust accounting features, but setup can be challenging. Key areas like accounts, customers, vendors, jobs, and reporting often require expert guidance to configure properly.
- Non-accountants may find the interface difficult to navigate, and training resources could be better.
- Job costing is especially complex, involving materials, phases, and income tracking—easy to mismanage without support.
- The home page can feel cluttered, though it’s customisable. Many users aren’t aware that they can tailor it to suit their workflow
Xero
Xero is a cloud-based accounting software packed with features and tools to simplify daily accounting tasks. Small business owners can better manage their financial affairs using features such as bill payment, expense claims, payroll management, and inventory management. It’s also easy to create customized quotes and invoices right on the platform. You can then send these invoices to clients and accept payments online.
The following are key features of Xeros:
- Customizable dashboard
- Invoicing automation
- Bank reconciliation
- Expense claims management
- Financial reporting
- Payroll management
- Project tracking
- Contact management
- Financial reports
- Bank reconciliation
Pros
- Advisor Collaboration: Share data with accountants in real time.
- Free 30-Day Trial: Explore features before committing.
- Bank Integration: Real-time feeds and automatic reconciliation.
- Smart Invoicing: Create quotes, orders, and invoices with ease.
- Scalable Growth: Adapts as your business expands.
- Mobile Expense Tracking: Submit and approve claims on the go.
- Unlimited Users: Collaborate across teams effortlessly.
- App Integration: Connect with tools for inventory, projects, and more.
- Automatic Updates: Stay current with the latest features.
Cons
- Pricing: Recent price increases and the removal of built-in payroll mean businesses should carefully compare plans and features before choosing.
- Basic Inventory Tools: Requisition and inventory features are limited. Businesses with complex needs may need third-party integrations.
- Feature Restrictions: Expense claims, projects, and multi-currency support are only available on the highest-tier plan.
- No Built-In Debtor Chasing: Users must manually follow up on unpaid invoices unless they integrate external tools for automation.
- No Support for ETPs: Investment tracking for Exchange Traded Products isn’t supported natively, but can be added via integrations.
- Performance Issues: Heavy online use or high PayPal volume may slow things down. Monitoring and support engagement are recommended.
- Customer Service: Some users report slow or unhelpful support. Forums and help resources can offer alternative assistance.
Does a small business need accounting software?
In most cases, yes. There are some exceptions, for example, if you are a sole proprietor and only work with a few clients or customers. But in general, bookkeeping or accounting software will likely help run your business more efficiently.
Can I do my own small business accounting?
Yes, you can! But if you scale your business, it would obviously make sense to hire a qualified Accounting Technician, which is where Any Other Business can help.
Click here for more information on Bookkeeping Services offered by Any Other Business.