Both Excel and Google Sheets work for bookkeeping. Choose Excel if you want your file stored on your own computer and you often work offline. Choose Google Sheets if you use several devices or want to share your numbers with an accountant by link. Both handle transaction lists, category dropdowns, and monthly totals.
Excel vs Google Sheets for bookkeeping: side-by-side
| Question | Excel | Google Sheets |
|---|---|---|
| Where does your data live? | In a file on your computer, unless you save it to a cloud service such as OneDrive. | In your Google account, online. |
| Does it work offline? | Yes, in the desktop app. | Yes, if you turn on offline access ahead of time. Otherwise you need an internet connection. |
| How do you share it with an accountant? | Email the file, or share it from a cloud folder. | Send a link, or share with an email address and choose view, comment, or edit. |
| Does it save automatically? | Only if the file is stored in a cloud service with autosave on. Otherwise you save by hand. | Yes, every change saves automatically. |
| Can you use dropdowns and formulas? | Yes. | Yes. |
| What does it cost? | Excel comes with a Microsoft 365 subscription or a one-time Office purchase. A web version with fewer features is available with a free Microsoft account. | Free with a Google account. |
Both programs can do everything a small business bookkeeping spreadsheet needs. The difference is where the file lives and how you share it. Check current plans and features on each company's website before you decide, because they change.
Can you use Excel for bookkeeping?
Yes. Excel handles a transaction list, category dropdowns, and monthly totals without extra tools. Many sole proprietors use Excel for bookkeeping because it keeps the data on their own computer. The bookkeeping in Excel guide covers the setup step by step.
Can you use Google Sheets for bookkeeping?
Yes. Google Sheets does the same job, and its main advantages are automatic saving, easy sharing, and access from a phone, tablet, or any computer with a browser. The bookkeeping template in Google Sheets guide covers the setup step by step.
Which should you choose?
- Choose Excel if you want your financial data stored on your own computer, you already own Excel, or you often work without an internet connection.
- Choose Google Sheets if you work from more than one device, you want your accountant to open your numbers without emailing files back and forth, or you do not own Excel.
- Either one works if you only want a simple record of income, expenses, and profit. Pick the one you will open every week, because the best bookkeeping system is the one you actually use.
When should you move past a spreadsheet?
A spreadsheet stops being the right tool when you need invoicing, payroll, automatic bank feeds, or statements a lender asks for. If that sounds like your business, read the spreadsheet versus QuickBooks comparison before you switch. If you are a sole proprietor who needs to track income and expenses and see profit each month, a spreadsheet is enough.
Can you get a bookkeeping template for both?
Yes. The Bookkeeping Rescue Kit comes in both Excel and Google Sheets, with the same five tabs in each: a Transaction Tracker, a Monthly Dashboard, a Category Reference mapped to Schedule C lines, a Close-Out Checklist, and step-by-step instructions. You pick the version that fits how you work.
Want the setup done for you? The Bookkeeping Rescue Kit is a bookkeeping spreadsheet for small business owners with five connected tabs, Schedule C categories, and a monthly close-out checklist. It comes in Excel and Google Sheets. $9.99, one-time purchase. No subscription.
Get the Kit →Frequently asked questions
Neither is better for everyone. Excel keeps your file on your own computer and works offline. Google Sheets saves automatically, shares by link, and opens on any device. Both can handle a transaction list, category dropdowns, and monthly totals.
Yes. Excel handles a transaction list, category dropdowns, and monthly totals, which is everything a small business needs for basic bookkeeping.
Google Sheets is free to use with a Google account. Check Google's current terms for any limits that apply to your account.
Excel stores your file wherever you save it, such as your computer or a cloud folder. Google Sheets stores your file in your Google account. In both cases, how safe your data is depends partly on your own choices: use a strong password, turn on two-step sign-in, and share the file only with people you trust.
A spreadsheet works well if you need to track income, expenses, and monthly profit. Accounting software is a better fit if you need invoicing, payroll, or automatic bank feeds.