Why QuickBooks?

Okay, we know you know that you need an accounting system. Somebody, maybe your accountant, friend, or spouse, has convinced you of this. And you, the team player that you are, have just accepted this conventional viewpoint as the truth.

But just between us, why do you really need QuickBooks? What does QuickBooks do that you really, truly need done? And just to be truly sceptical, also ask the question “Why QuickBooks?” Why not, for example, use some other accounting software?

Why you need an accounting system

Let’s start with the most basic question: why do you even need an accounting system? It’s a fair question, so let us supply you with the two-part answer.

The first reason is that it is a legal requirement that you keep accounting records for tax purposes. Maintaining an accounting system – be it a paper-based ledger system, a spreadsheet or fully fledged accounting software – will help you meet your legal obligations. If you decide just to blow off this requirement – after all, you got into business so that you could throw off the shackles of bureaucracy – you might get away with your omission. But if HM Revenue & Customs (HMRC) examines your return and you cannot prove the numbers, HMRC gets to do your accounting the way it wants. And you can bet the HMRC way means that you pay more in taxes.