Is free accounting software reliable?

A lot of small (starting) businesses are looking for ways to save money. One way that they can do this is to use free accounting software to keep their books. While this will certainly save them money it may not be the best way to go about doing it. In general the free accounting software is going to be limited in what you can do with it. Moreover the more advanced accounting software really isn't that expensive so the amount you save is pretty minimal. More importantly no form of accounting software is an adequate replacement for a professional accountant.

For the most part free accounting software is reliable, if there is a problem with the results you are getting from your free accounting software it is usually because of what you are putting into it. Accounting software is a way to make the bookkeeping process easier however it doesn't change the requirement that the person using the software be trained in proper bookkeeping procedures. If you send somebody who doesn't know what they are doing to fill out your financial statements you are going to get bad results and it isn't going to matter what kind of software they are using. While free accounting software is generally reliable there are some issues with it that you are going to have to keep in mind.

The biggest issue with using free accounting software is that it tends to be much more limited in what it can do than the more advanced versions. The biggest thing that you are going to notice is the need to spend a lot more time entering data since it probably won't be able to import the data from other sources. You will also likely find yourself to limited in what kinds of output you can get from your free accounting software. The reality is that most people find the free software to be a pain to use and sooner or latter opt for a more advanced professional version. This makes their lives a lot easier and generally produces better results.

One thing that you have to keep in mind if you are going to use accounting software, free or not, is that it is no substitute for an actual accountant. In fact most accountants these days don't even do the bookkeeping anymore, they rely on software for that. What an accountant can do is audit your books, help you find ways to save money and help to make your company more profitable. The modern accountant is really a business consultant and really can't be replaced by accounting software. Certainly you can and should use accounting software to keep your books but you should also have an accountant that you consult with on a regular basis. Not only will he help to make sure that your books are in order but he will also help to make sure that your company is in good shape financially.