Well, hello there.

Can you believe it’s Monday again? How was your weekend?

We had perfect Spring weather just before the first day of Spring, and there has been tons of snow ever since. I have stopped trying to make sense of our Canadian climate.

I want to talk about software today.

Not a specific software tip but a broader discussion of the importance of accounting software.

New bookkeepers worry about what accounting software to learn.

QuickBooks or Xero? Sage or FreshBooks?

Learning them takes time. We don't want to waste time learning the wrong one.

I’ve got a hot take I’d like to share.

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It doesn’t matter which one you choose.

No, I haven’t lost my mind. Well, I may have, but it wasn’t because of this. Let me explain.

Yes, you need to know how to use accounting software. Specifically, you need to know how to use whatever software your first client uses. If you’re new to bookkeeping, you should learn one piece of accounting software and find a client who also uses this software. If you’ve been a bookkeeper for a while but you’re new to doing it as a solo business, you might be able to learn the software on the job.

As a new bookkeeper, the software you choose now isn’t important. Even worse, spending too much time deciding which to choose can be a form of procrastination. Instead of learning the basics of accounting, it’s tempting to spend hours learning the ins and outs of QuickBooks Online. Then, when it’s time to search for clients, you decide to dig into Xero instead.

It’s busyness dressed up as productivity. As I’ve said before, nothing teaches you like real-world experience. Reading the QBO manual ten times isn’t as good as a solid week using it with real client files.

Here are the biggest reasons you shouldn’t worry about software selection now.

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​Chasing the perfect software is futile.

I have bad news for you. There is no perfect accounting software.

I get the desire. I have that obsessive personality. I would gladly spend hours, days, or weeks studying each option. Comparing features side-by-side, reading reviews, and creating a tournament-style bracket where I pit each software against the other until a winner emerges.

All software has bugs. They’ll do at least one thing you hate.

What you’ll eventually find is the one that’s best for you, but even then…

Software can change or go away.

For a few years in the 90s, my favourite accounting software was MYOB. It had all the features I needed and the interface suited my work style. Concerned about how much market share it was capturing, Intuit Canada bought it in 2001 and quickly shut it down.

Despite my anger at Intuit for killing my favourite software, I moved to QuickBooks Desktop. I grew to love it and used it for a very long time. But when I shifted to be a fully remote business, running desktop software didn’t make much sense.

Unfortunately, QuickBooks Online was very limited back in 2010, especially in Canada. I still remember my ProAdvisor rep telling me not to bother using QBO, telling me it wasn’t ready to be used seriously.

Out of necessity, I searched for alternatives. That’s when I came across FreshBooks and Xero (and a few others).

One skill you’ll need in this profession is adaptability. You can’t assume things will stay the same. Even if you stick with Intuit, there will be major changes in features, design, and pricing in the future. As your accounting skills develop, you’ll be able to take those and apply them to any piece of software.

When you’re getting started, you’re going to work with all sorts of clients. You’ll eventually decide on a niche that suits you. When you do…

Your industry might use something different.

I love using FreshBooks. It’s a great team (and Canadian), and its software is ideal for clients running simple service-based businesses. If I decide to work with inventory-heavy retail stores, it won’t matter how friendly and Canadian FreshBooks is. It’s not suited to that type of business.

If I started working with large corporate clients, I could end up using Netsuite. However, if I pivot into working with solo business coaches, I won’t convince them to use such complex and expensive software.

Ok, so what do I choose then?

If you’re looking for your first client, the safest bet is to learn QuickBooks Online, at least in North America.

The ProAdvisor certification is the most well-known and QuickBooks is becoming synonymous with bookkeeping the way Kleenex and Band-Aid are in their industries.

You may not stick with it forever, but it’s the one most of your potential clients will be using.

If I’m wrong, and the clients you’re speaking with all use something else, go with that.

The point is to get started so you can gain experience. The software is secondary to the accounting fundamentals and all of the client, task, and time management skills you need to run a solo business.

What about when I’ve got more experience?

Once you’re more comfortable with the bookkeeping and you’ve settled on a niche (which is optional), the choice is yours.

The most efficient choice is to pick one and master it. This is crucial if your plan is to:

• Work with a lot of smaller clients.
• Eventually hire a team and outsource the client work to them.

In that case, you want your business to run like one big template. Everyone uses the same software and does their work the same way.

Or, do whatever you want. We’re all adults, right? If you run 3 different apps and that works for you, great!

I mostly run Xero, but I also work with QuickBooks Online and FreshBooks. I see them as tools I use for different tasks.

And this is just the accounting software. All of other apps we use for client work and for running the business really add up. I’ll cover some of those in the future.

I guess the main point here is to stay focused in the beginning. Your goal is to get clients so you can start supporting yourself financially. Don’t worry about learning 5 apps. Or what your website looks like.

Just get started.

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What about you?

If you’re just getting started, what have decided to use for your accounting software?

Or, if you’ve been doing this for a while, what would you do if you were starting over today?

To be clear, I didn’t do this the right way, so no judgment from me.

I’m curious if you stuck with one option or tried to learn everything at once like I did.

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I hope you have a great week, and I’ll talk to you again soon.

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