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Are you starting a business and not an accounting expert? Choosing the right software is crucial: it can save you time, money, and stress. In this article, we show you the 6 most common mistakes worth avoiding so you don’t compromise your financial management.
We’ve been working for years alongside micro and small businesses, freelancers, and foundations, and we’ve seen how these mistakes often recur—not only among those who need to choose accounting software for their own business, but also among consultants or professionals who advise others on which program to use.
1. Delaying the adoption of software
When starting a business,there are always many things to take care of, and it's easy to make the biggest mistake: postponing the adoption of a system that can show how much money is coming in, how much is being spent, and how much is left available.
The beginning is a delicate phase, often full of unexpected challenges. It’s essential to monitor cash flow from the very start, as lack of liquidity is often the main cause of difficulties that can put the business at risk.
Implementing accounting software right away allows you to:
- Know how much cash you have left and plan expenses better, rather than relying on loans.
- Quickly spot unexpected costs, which are common in any new business.
- Check if income is in line with forecasts.
- Understand whether your business is making a profit or a loss.
- React quickly to promising market trends and abandon unprofitable ones.
- Have the key information you need to consult with an expert or apply for additional credit.
If you’ve already found the most suitable software, start using it right away and begin recording transactions regularly to have up-to-date financial data.
If you haven’t found the ideal solution yet, don’t stay stuck: start with a simple program that matches your needs and skills. What matters is that it’s still professional software, able to provide structured financial information and support the growth of your business.
Even a temporary choice is fine, as long as it makes it easier to switch to other tools in the future.
An alternative is to fully delegate accounting to third parties. The support of specialists is always helpful, but keep in mind that, in general, accounting will be managed mainly to meet tax obligations. If you want them to also track your cash flow, you’ll need to make a specific arrangement to ensure they provide data in time for financial management. Additionally, you’ll have to organize yourself to gather and deliver all necessary documents as promptly as possible.
2. Waiting to collect supporting documents digitally
While not directly related to choosing software, many wait until they have one before starting to collect accounting documents in digital format. This is a mistake that makes everything more complicated.
With the computers and smartphones we all have at our disposal, it’s a good idea to digitize receipts from the start. This simplifies management enormously: thanks to AI-based tools, you’ll find them in seconds when needed, and once you use accounting software, you’ll be able to link each document to its related transaction.
Google Drive, Dropbox, OneDrive, and iCloud apps already include scanning features, but there are also dedicated apps like Adobe Scan that crop the document and save it as a PDF—the ideal format, as it also allows combining multiple pages. After scanning, still keep the original copies in a binder and number them progressively.
Ideally, you should create a well-organized folder structure on your computer for documents and accounting. Even better if you use a cloud-synced folder (Google Drive, Dropbox, OneDrive, iCloud): this way, you can access files from different devices and easily share them with other tools.
Digital receipts (invoices, contracts, or receipts downloaded or received by email) can be saved in a single directory. Take a few extra seconds to rename the files with the date in the format yyyy-mm-dd (e.g., 2025-08-12-telekom-july-invoice): you’ll have documents that are chronologically ordered and easy to find.
Even if your accounting software allows you to upload receipts directly, it may be more convenient to save them in the cloud first: this way, they’ll remain accessible, organized, and reusable with other tools whenever needed.
Example of directory structure for saving digital receipts
3. Choosing software without checking if it suits you
Have you ever relied on the advice of a colleague, a friend, or your accountant? Or simply chosen the software considered “the best”? It’s a common approach, and sometimes it works, but it doesn’t guarantee that the software really fits your needs and skills.
All developers try to make their programs user-friendly, but ease of use also depends on your knowledge, the time you can dedicate, and the goals you want to achieve. It’s not unusual to start off enthusiastically and then abandon the software after the first difficulties, wasting valuable time.
One example comes from Intuit, a global leader in the field, which develops QuickBooks—a software we consider a benchmark and a source of inspiration to improve Banana Accounting. Intuit has openly acknowledged this issue: in 2021, they reported that millions of people try QuickBooks but don’t continue using it, precisely because of the initial difficulties. Clearly, it’s not the software’s fault, but rather the users’ skill level.
For this reason, when starting a new business, it’s helpful to seek advice from experts or use tools based on artificial intelligence to guide you. However, it’s important that the software you choose matches your actual needs and skills — otherwise, the problems won’t be solved.
Intuit Big Bets: Intuit.com, September 17, 2021 (highlight added)
4. Thinking all accounting software is too complicated
Many people give up on choosing accounting software because they assume it’s too complex and only meant for specialists. It’s true that traditional programs are often monolithic: designed for a specific purpose, they always include double-entry accounting, VAT management, multi-currency features, and other advanced functions that aren’t always needed, making them heavy and complicated for non-specialists.
In reality, there are now professional yet simple solutions like Banana Accounting, which allow you to create customized accounting with the most suitable method and only the features you need. This high modularity has enabled the creation of many ready-to-use templates designed for specific needs, making it much easier to get started.
You can start with templates based on the Cash Manager (completely free) for simple cashbook-style accounting, or with templates based on Income/Expense accounting, ideal for non-specialists who still want full, professional features—perfect for small businesses, associations, foundations, and individuals.
Even double-entry accounting becomes accessible thanks to simplified templates that exclude VAT, multi-currency, and other features designed for larger companies. Thanks to this combination of simplicity and professionalism, Banana Accounting is also used in schools: it helps students learn the fundamentals and prepares them to use any other management software, including more complex ERPs.
With Banana Accounting, simplicity is not a limitation but a gateway to advanced features that are only activated when needed. Another example is the Securities Management feature integrated into the accounting system, which is missing in most ERPs: it’s an advanced function available when necessary and does not complicate things for users who don’t need it.
Banana Accounting Income/Expense interface
5. Relying on Excel to manage your accounting
Excel is a powerful and flexible tool, and it's often used for accounting because free pre-made templates are easy to find online. While getting started may seem simple and quick, it’s widely acknowledged that Excel is not the right choice because it’s not designed specifically for accounting.
It’s better to start immediately with accounting software that offers real advantages Excel can’t match, saving you valuable time:
- Predefined accounting structure, with the ability to automatically generate balance sheets and income statements.
- Reduced manual errors, thanks to built-in checks and preset calculations.
- Bank transaction import, which saves time and reduces the risk of mistakes.
- Understanding accounting logic, so you know what you're doing without hiding the process.
- Link to accounting documents, so you can view the receipt or invoice with a single click.
With Excel, it’s hard to go beyond simply recording income and expenses without investing a lot of time. If you think Excel is good enough, consider that you can get the same results more easily and faster using the Banana Accounting Cash Manager, a completely free app similar to a cashbook, which lets you categorize income and expenses and offers many other features.
Starting with a simple program, but already based on accounting logic, makes it easier to later move to more advanced solutions.
6. Underestimating the complexity of ERP software
Many accounting programs already offer everything needed to manage a business: accounting, invoicing, inventory, orders, payroll, etc. ERPs (Enterprise Resource Planning) are instead designed for larger organizations with high volumes and multiple users working simultaneously. These are powerful but complex tools: they require specific skills, a proper organizational structure, and significant implementation time.
Adopting an ERP requires proper preparation and usually takes time. If you only need accounting management, starting with an ERP might be excessive, risking loss of financial control just when you need it most.
For a new business, a small company, an association or a foundation, the real initial goal is to be able to keep the accounts up to date independently, even without advanced accounting knowledge. There are solutions, like Banana Accounting, designed to be simple and intuitive, as they allow you to use only the applications you need, without being forced to manage unnecessary features.
Don’t be afraid of “wasting time” by starting with a more essential program. On the contrary, good accounting organization, the habit of collecting receipts, and updating them regularly make it much easier to later switch to complex systems. And if you already have clear data on performance, volumes, and administrative needs, choosing and setting up an ERP becomes much simpler and more effective.
A simple way to get started: try Banana Accounting Plus
Avoiding the mistakes we’ve seen means starting off on the right foot. If you want to practice and see how easy it can be to keep your books in order, you can start right away with the Free plan of Banana Accounting Plus: create your accounting, enter transactions, and see if the program is truly right for you.
You have access to all the features of the Advanced plan (the most complete plan), with no time limit, up to 70 transaction rows. Additionally, the Cash Manager (cashbook) and Time Sheet are free and unlimited.
Simply download the program from the Download page, install it on your computer, and choose from the many predefined templates (File menu > New) created by experts for different countries and types of activities: small businesses, associations, foundations or individuals.
If you later decide to upgrade to a paid plan, you won’t lose anything: your work will remain intact.
You can also use Banana Accounting Plus WebApp directly from your browser. It’s the fastest way to try setting up an accounting file, and start entering data. To begin, try one of these universal templates: real “wild cards” not tied to any specific country:
- Cash Manager - Cash Flow Planning, Budgeting and Management for Freelancers and Small Companies
- Income & Expense Accounting - Family Budget and Household accounts
- Income & Expense Accounting - Non-profit Organizations
- Double-Entry Accounting - Teaching Accounting
- Double-Entry Accounting - Corporation
- Double-Entry Accounting with Foreign Currencies - Budget with Formulas for Multi-Currency Financial Planning