The answer to this weeks question is pretty simple. I don't know. QuickBooks can be a big investment for a small business. If your business still has a small enough number of transactions that you can keep everything organized with a spread sheet or pen and paper, then I say continue with what you're doing!! I would say as you add additional bank accounts, credit card accounts, clients, contractors etc. it's time to get some sort of professional accounting software.
I think software allows you to see the big picture of your business and create financial statements for review in an instant. For businesses such as contractors, an accounting software program is imperative to ensure you know the profit you are making on a job in real time. I have worked with so many contractors who have no clue what jobs they've made or lost money on because they simply aren't keeping track.
Programs like QuickBooks offer features where your transactions roll in for classification as they happen. The biggest thing this feature does over a "by hand" method, is ensure each and every transaction is accounted for. Additionally, this will likely save time in the long run. For most small business owners who fear spending money on x, y, and z, the big question should be, "what is my return on investment?".
If you are an attorney who bills at $250/hour and it takes you 5 hours/month to manage your accounting by hand, chances are QuickBooks (and a bookkeeper) will be cheaper than the $1250 you could have billed that month had you not been focusing on accounting.
If you're ready to pass off your paper and pencil method accounting, I would be happy to help! Please contact me at 314-450-1140 to set up a consultation.