Cratchit vs QuickBooks and a CPA
Most owners run some version of the same setup: QuickBooks or Xero for the books, a CPA at tax time, and a lot of guesswork in between. The books get caught up in a rush before the return, tax planning happens in March when it's too late, and nobody answers the question of how much you can safely take out.
Cratchit isn't a replacement for your CPA. It's the part in between: books kept every day, a tax picture all year, and a CFO view of what to do with the cash.
Who does what
| QuickBooks or Xero | Your CPA | Cratchit | |
|---|---|---|---|
| Keeps the books day to day | You do, in the software | Usually not | Yes. Transactions come in and are sorted; you answer a few questions a week |
| Reconciles and closes each month | You do | Sometimes, for a fee | Yes, against each statement |
| Tax projection during the year | No | If you ask, usually once | Yes, running all year, with quarterly estimates on the calendar |
| Tax strategies on your real numbers | No | Depends on the CPA | Yes, rated against your numbers, as education to take to your CPA |
| What you can safely take out | No | Rarely | Yes, for each company, checked 13 weeks ahead |
| Your family's money and net worth | No | No | Yes, alongside the businesses |
| Prepares and files your return | No | Yes | No. Your CPA files, from clean books |
If you like QuickBooks
If you or a bookkeeper enjoy working in QuickBooks and the books are always current, keep it. The question is whether anyone turns those books into decisions: what you'll owe, what to set aside, what you can pay yourself, which strategies fit this year.
If the books are always behind
That's the most common reason owners move. Cratchit brings the books over once from QuickBooks or Xero, connects your banks read-only, and keeps things current without a monthly catch-up. Your CPA signs in free, sees what you share, and downloads a trial balance matched to the lines on the return: 1120-S, 1065, Schedule C or Schedule E.
What it costs
Cratchit is $149 a month, including one business, your family's personal finances and up to 20 connected accounts. Each additional business is $49 a month, books included. Your spouse, CPA and advisors are added at no charge. Compare that with QuickBooks plus a bookkeeper plus the CPA's catch-up fees.
Common questions
Do I still need a CPA with Cratchit?
Yes, to prepare and file your return and for advice on your situation. Cratchit hands your CPA clean, closed books and a tax file matched to the return.
Can I bring my QuickBooks history over?
Yes. The books can be brought over once from QuickBooks Online or Xero.
Can my CPA use Cratchit with their tax software?
Yes. Tax lines matches every account to its line on the return and downloads a trial balance. UltraTax codes are built in, with import notes for Lacerte, CCH Axcess and Drake.
Is my bank login safe?
You sign in on your bank's own page through Plaid. Cratchit never sees the password, and the connection is read-only.
Related
Books for every company, a tax picture all year, and what's safe to take out. $149 a month after the trial, $49 for each additional business. Rather look around first? Take the guided tour with a sample family, or book a 15-minute call.
Start your free trialEducation, not advice. Confirm the details for your business with your CPA.