If you have been using GoDaddy Online Bookkeeping, you probably have grown accustomed to both its benefits and its limitations.
Now that GoDaddy’s Online Bookkeeping is retiring, you are being forced to ask yourself which is the right bookkeeping alternative for you. Don't worry, this is exactly what we are here to help you answer.
Let's dive into your different ecommerce bookkeeping choices and identify the best fit for your business.
What’s the best way to manage your books?
Let's take a step back to consider how you manage your books and whether this still makes sense for your business.
There are 4 main ways to manage your ecommerce finances:
- Manage it yourself in an Excel or Google Sheet (DIY)
- Manage it yourself with an accounting software (e.g., Quickbooks) (DIY)
- Automate it by using a SaaS solution to manage your books
- Outsource it to a bookkeeper
Managing it yourself with an Excel or Google Sheet tends to be extremely inefficient and error-prone. It may seem like the most cost-effective option, but in reality may be the most expensive. Managing your books with an Excel or Google Sheet means investing a lot of your time into administrative tasks instead of investing in growing your business.
In comparison, outsourcing to a bookkeeper may be more efficient from a time perspective but can cost you on average $400 a month. In addition, it's important to find someone that specializes in the ecommerce space to ensure the nuances of ecommerce finances are accounted for correctly.
Since, in our view, using either an Excel or a bookkeeper will cost you the most (either in cash, time, or a combination of the two), this blog will focus on the two more reasonable and relevant options for GoDaddy customers - managing your finances yourself with an accounting software or automating the process by using a SaaS company.
Let's compare two of the choices to see which is the right option for your business - Finaloop, a full automated bookkeeping service vs Quickbooks, a DIY accounting software:
DIY bookkeeping with an accounting software (e.g., Quickbooks)
Quickbooks is an excellent accounting software with many features and a large pool of integration options for ecommerce sellers (e.g., eBay, Etsy, Paypal, etc.). Prices start from $16 for the Simple Start edition but you would likely upgrade to a higher tier of $25 or $35 per month to get the functionality you would need. In addition, certain integrations cost extra (e.g., A2X to integrate Amazon).
In theory, you may expect Quickbooks and GoDaddy to be fairly similar in terms of simplicity and the level of work required. Unfortunately, this is not the case.
It's important to remember that Quickbooks is an accounting software only and not an accounting service. What this means is that if you don’t have accounting or bookkeeping knowledge, Quickbooks can be fairly complex and may easily result in inaccurate financials.
Quickbooks may be a good fit for you if you have intermediate to advanced accounting knowledge (this is why it's a preferred choice for many CPAs). At a minimum, you should be familiar with double-entry accounting (i.e., debit and credit), balance sheets, owner’s equity, bank reconciliations, and creating a relevant chart of accounts for your business. If not, any money you save by managing your financials yourself may be lost when you need to pay a CPA to correct the books come tax time.
Using Quickbooks with no accounting background is the equivalent of driving a car without a license. Maybe you will get where you want to go, or maybe you will end up crashing into a brick wall and have to pay for damages. Only time will tell.
Bottom line: Quickbooks has excellent features and integrations available. However, using Quickbooks to manage your books without a bookkeeper is not recommended if you have no accounting knowledge.
Automate your bookkeeping by using a SaaS solution
Automating admin tasks can save you a significant amount of time and money so you can focus on growing your business.
By automating your bookkeeping with a SaaS solution like Finaloop, you have access to an accounting software but would be outsourcing the task of maintaining accurate financials to the experts.
Quickbooks software is cheaper than Finaloop (by about $34 per month, depending on the tier and size of your business). The price difference relates to the fact that Finaloop and QuickBooks offer two different services. QuickBooks is a software that you use to do your own bookkeeping. Finaloop is a service that does your bookkeeping for you.
By automating your bookkeeping with a SaaS company like Finaloop, you could reduce your monthly bookkeeping work from about 10 hours a month to about 15 minutes a month.
As a small business owner, your time is valuable. The real question to consider is whether about 9 hours of free time a month is worth $34 to you and your business.
You may have been happy with GoDaddy Bookkeeping's functionality, simplicity, and price and don't want to be forced to switch to a new system, a new process, and a new way of doing things. We hear you, change is hard.
BUT...maybe, it's also a good time to reassess and ask yourself, "is there a better way to do this?"
Quickbooks is a great option to save some money for small business owners with accounting knowledge and sufficient resources to handle about 10 hours of monthly bookkeeping work. If not, automating this process by trying out Finaloop can reduce your bookkeeping headaches, increase your accuracy, and give you more time to invest in growing your ecommerce business.
Still not convinced? Finaloop has a special offer for GoDaddy customers. By heading to this link, you can try Finaloop for 30 days free. No commitment and no credit card required.
We are a technology company providing automated end-to-end accounting service to ecommerce businesses. Our system connects to your apps, syncs all your data, and reconciles your books in real-time, replacing your bookkeeper. We offer reconciled books available 24/7, tax-saving insights, and a single place for all your financial data.
*The information provided on this website does not, and is not intended to, constitute legal advice. All information, content, and materials available on this site are for general informational purposes only. Readers are advised to consult with their attorney or accountant with any questions or concerns.*