Generally speaking the larger the size of your business the more beneficial it is to use accounting software. Businesses at start-up stage can get by with a spreadsheet if they only have a few transactions per month. However, if you have more than a handful of transactions, then you are likely wasting valuable time by using a spreadsheet.
Most accounting software has various levels of automation that can help reduce the time it takes to enter the information. If you have a number of expenses or bills, you will have to enter the information manually when using the spreadsheets.
Additionally, some accounting software will let you attach source documents such as receipts and bills to the transaction making it much easier to track everything relating to a transaction in one place.
It is easier to deal with the CRA auditors if you have the business records kept in your accounting software. You would be able to provide them with the financial reports as well as detail transactions for any fiscal period.
If you need assistance with bookkeeping please reach out to ProTaxVille.