We are likely going to switch accountants. Our current ones had been doing our book keeping (we just give them the bank and c/c statments etc), but we are thinking of using Tiller to do our own to save some $. Will Tiller be sufficient? It doesn’t do double entry right? I assume the accountant will need that?
What do I need to know to do our own before handing info over to our next accountant for them to file taxes? I’ve been coding the categories and feel decently comfortable doing that for the past few years, but not sure what to do beyond that. Just curious how others use Tiller when they work with an accountant before we start interviewing other accountants. Thanks!
Depending on the size of your business, you may not need double-entry accounting. The P&L might be fine. We typically create a balance sheet once a year. QBO and other accounting software are usually overkill for most instances. I think Tiller will be fine for most small businesses.
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what would you consider small business? pretty sure we fall under it, but just curious. thanks!
Less than $250,000 in revenue and/or assets.
When I was consulting (before I started working FT with Tiller), I did my books in Tiller. When I first shared my spreadsheet, my tax accountant said it was well organized and had everything he needed. He has never asked for help or changes.
Unless your business is complicated (e.g. payroll, double entry, non-trivial taxes), @DFin, your accountant will probably be pretty happy working off your Tiller spreadsheet.
That said, it’s worth syncing with your accountant before you invest too much time in setup and categorization to be sure you’re on the same page.
Let us know how it goes!
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In my experience as a CPA, I completely agree with this. It also depends on the type of business and complexity. Any businesses with inventory would be better suited to something like Quickbooks that can track that in detail. Service businesses are ideal candidates for Tiller budgets, and it’s awesome because you can pull in all that data and run any charts and analytics you want directly in the same file.
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This would be for a dessert shop gross revenue $275k/year. typical overhead, labor costs, almost no accounts receivable/payable…would that still be suited for Tiller? Could I keep track of the income/expenses and just let my CPA take care of the amortization/depreciation part? I’ve never used QB before and just figured out Tiller lol.
It would be fine, you just would want to supplement with tracking those extra things to make sure payroll withholding, accounts payable, etc all get paid on a timely basis. And of course, would need a separate payroll program. Most cash basis businesses that size simply use tax depreciation anyway.
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If you go the Tiller Money route, @DFin, consider sharing any workflows, templates and insights you gain for others hoping to run a retail business out of a Tiller Money spreadsheet. As @Kathryn said, there is a long track record of success for small services business in Tiller Money spreadsheets— and the Simple Business Dashboard is a great addition.
I agree with @Kathryn that your business sounds like a fit but there will be a few problems to solve at the margins. Let us know how it goes.
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