Where to Do Your Bookkeeping
QBO, spreadsheets, Wave, Xero — here's how the main bookkeeping options compare for US small businesses and why NCO uses QuickBooks Online for every client.
There are a few ways to manage business bookkeeping in the US. This article explains the main options, what they're each good for, and why NCO uses QuickBooks Online.
The Main Options
QuickBooks Online (QBO)
Cloud-based accounting software. Your books live online, your bank feed connects automatically, and your bookkeeper can access everything in real time without you emailing files back and forth.
Best for: Most small and medium US businesses.
Why NCO uses it: QBO is the most widely used bookkeeping platform in the US. It integrates with US banks, handles sales tax natively, and supports the workflows your bookkeeping team uses every day. When your books are in QBO, your CPA can review them, your bookkeeper can work in them, and you can log in any time to see your numbers.
Spreadsheets (Excel or Google Sheets)
Manual entry, no automation, no bank feed integration.
Best for: Very early-stage businesses with minimal transactions who aren't yet working with a bookkeeper.
Why we don't recommend it long-term: Spreadsheets don't scale. They require 100% manual entry, they're easy to break, they don't produce financial statements automatically, and your accountant has to rebuild everything at tax time. Most businesses that start on spreadsheets wish they'd started on proper software sooner.
Wave
Free cloud-based bookkeeping software. Functional for basic needs.
Best for: Sole proprietors with simple books who want a no-cost option.
Why NCO doesn't use it: Wave has limitations around US tax handling and doesn't integrate as cleanly with the tools your bookkeeping team uses. Moving from Wave to QBO later adds unnecessary work.
Sage or Xero
Other cloud-based accounting platforms. Both are legitimate.
Best for: Businesses that started on these platforms and have existing books in them.
Why NCO doesn't default to them: QBO is the platform your NCO team is set up to work in. Using a different platform means your bookkeeper is working outside their standard workflow, which increases the chance of errors and makes collaboration harder.
Paper / Shoebox
No system — just collecting receipts and bank statements.
Best for: Nobody.
Why it doesn't work: Without organized records, your accountant has to reconstruct your books from scratch at year-end. This is the most expensive way to manage your finances and the most likely to result in missed deductions and IRS or FTB problems.
What This Means for You
If you're an NCO client, your books are in QBO. You don't need to manage the software yourself — your bookkeeping team does that. What you do need to do:
- Keep your bank accounts connected (see: How to Connect Your Bank Account in QBO)
- Send receipts and invoices to your bookkeeper when requested
- Check in on your books occasionally so you understand your numbers
FAQ
Do I need to learn QBO myself?
Not in depth. Your NCO bookkeeping team manages QBO for you. It's useful to know how to log in and read your Profit & Loss and Balance Sheet, but you don't need to know how to operate the software day-to-day.
What if I already have books in a different system?
Let your NCO team know. They'll advise on whether to migrate to QBO or continue in your current system. For most clients, migrating is worth it early — the longer you wait, the more history there is to move.
Can I access my books any time?
Yes. QBO is cloud-based — you can log in from any browser. Your NCO team will set you up with your own login.
Is my financial data secure in QBO?
Yes. QuickBooks Online uses bank-level encryption. Intuit (QBO's parent company) is a publicly listed company with significant security infrastructure. Your bank connection is read-only — QBO can see transactions but cannot move money.