Small Business Accounting Software, Part I
I'm currently using Quickbooks Online Edition to manage my corporate books. Quickbooks Online is $24.95 per month, or $299.40 a year. Additionally, since Quickbooks Online Edition requires you to use Internet Explorer and their ActiveX control-- it is a web-based solution that requires you to run Windows and Internet Explorer to access it.
Since, I haven't gotten to the point of no return yet, so I decided to spend some time evaluating some other, cheaper alternative accounting packages.
"Low End" Accounting Software
Of course, the cheapest solution is to use some form a manual ledger or Excel spreadsheets. To my surprise, Microsoft even has some ledger templates. Next up in price and features is using a standard home accounting software package like MoneyDance (versions for Linux, Windows, and Mac), Quicken, or Microsoft Money. Of course you will have to manually file your taxes, generate your own invoices and manually track who has paid your invoices.
The next level-- these are basically the same software with the added function of tracking payments, tracking invoices, and the ability to manage your personal finances simultaneously with your businesses.
For the most part, transactions are categorized with a focus on what will end up on a Schedule C tax form. None of these packages offer payroll or add ins for payroll. Additionally, the ability to send the data files to an accountant for cleanup and tax preparation, are for the most part, almost impossible.
Quicken Home and Business 2008
I've used Quicken product off and on since the 1990's. They had a world class product, but in recent years the changes have generated a considerable hostility among the Intuit user base (just checkout the Amazon reviews). Complaints about file corruption and crashes in this year's version should give you pause (and at least one very ugly security vulnerability).
Quicken Home and Business 2008 is a $99 version of Quicken that gives you the added feature of tracking your business in addition to your personal finances. If you are strictly a sole proprietor or freelancer who operates on 1099 basis (or other Schedule C centric enterprise), you can use Quicken Home and Business to manage both simultaneously.
There is a 60-day free trial, but the trial refused to print out a reconciliation report (or any reports for that matter) and promptly crashed. That was the end of my evaluation.
Microsoft Money Plus Home & Business
Like Intuit, Microsoft offers it's Microsoft Money Plus Home & Business version in a 60-day trial version.
And like Quicken, Microsoft Money Plus Home & Business focuses on business transactions that can be placed on Schedule C. As a result, freelancers who are sole proprietors and or bill on 1099 basis. You can generate invoices as well.
Reporting seemed to be a little weak, as I couldn't generate a bank reconciliation report, but all of the other standard business reports were well represented.
Labels: Business
