When a spreadsheet ledger makes sense
For a very small business, a side project, or a year of catch-up work before setting up accounting software, a general ledger is often all you need: every posting in one place, grouped by account, with balances you can tie to statements. It's also a useful working paper when rebuilding a client's books from bank records.
Keeping it reliable
- Use the same account names every time. "Office Supplies" and "Office supplies " become two accounts.
- Put a reference on every posting: check number, invoice number or statement date. It's how you find the source later.
- Tie bank account balances to the statement each month with the bank reconciliation tool.
Moving into accounting software
When you're ready to move to QuickBooks or Xero, set up the chart of accounts first, then bring in opening balances with a journal entry as of the start date and import transactions from that date onward.