Accounting

Oh no, not Accounting! As a small business owner, this is probably the last thing you want to think about. And you are not alone.

It is the one discipline in business that most entrepreneurs would like to avoid. However, it is also the area, when you become familiar with it, that will benefit you and your business tremendously.

Most small businesses are usually strapped for cash and may not be able to afford accountants. But even if you can afford an accountant, it is still smart to understand accounting rules and principles. Understanding financial statements, such as the balance sheet, profit/loss and cash flow statements allows you to make decisions in areas of your business that need need correction. Waiting till tax time to detect problems is not a good idea and could be fatal.

Understanding financial statements will allow you to manage your cash flow so that you can make adjustments. Negative cash flow, regardless whether or not the business is profitable, is a major factor in small business failure.

Accounting Software Review

If you are like most small business start ups you do not want to spend a lot of money on a bookkeeperand there is no need to. There are several software packages on the market that are affordable and easy to use, even for a beginner. Many small business start ups do not set up an accounting system right away and often end up sorting out the mess at tax time. Don't make that mistake! Set it up right away and don't wait untill your business is well under way.

Below we'll briefly review the programs most suitable for the small business owner.

Quickbooks Accounting Software
by Intuit, Inc.

Intuit has several version of their Quickbooks software. From the FREE version of  "Quickbooks Simple Start" to "Quickbooks Enterprise Solution" for a large multi user environment. You can test drive Quickbooks with the FREE "Quickbooks Simple Start" version. It allows only a maximum of 20 customers, but it will give you a taste of how the program works. If you like what you see you can upgrade to the paid verion of "Quickbooks Simple Start" for $99.95 or upgrade to the most popular version "Quickbooks Pro"

Quickbooks Pro is one of the best known and widely used small business Accounting Software programs in North America. It has a lot of very good features and is a good choice for any small businesses.

Quickbooks Pro's advantages include:

• Widely used by accountants dealing with small businesses
• Import data from Excel, Quicken, and MS Office Accounting
• Accept credit card payments directly in the program
• Interface with online banking for download of bank and cc transactions
• Comprehensive financial reports

Quickbooks does not have recurring invoices or handle estimated shipping costs. Generally it is somewhat bloated with features that many small businesses do not need and it is more expensive at a list price of $199.95 (On Sale now for $159.96) than the alternatives mentioned below. However, the fact that is so widely used by the accounting community is a big advantage.

Bookkeeper 2009
by Avanquest Software

If you are looking for a very simple, easy to use and cost effective accounting program, we recommend Bookkeeper 2009. At a price of $39.99 this is one of the best valued accounting software programs available. Its functionality is somewhat less than Quickbooks, but it is an excellent program for a small start up business, particularly if you are not familiar with accounting.

The main features are:

• Very user friendly for beginners
• Supports Credit Card Reader. Current Promotion includes a Credit Card Reader
• Tracks Jobs with To-Do Lists
• Calculates federal, state, SS and Medicare taxes
• Download Credit Card and Bank Data directly in Bookkeeper

If you do not have a good understanding of accounting systems, than this program will be a good way for you to start your accounting venture. When your business has grown substantially you can transition to a more sophisticated system.

MYOB Business Essentials
by MYOB Ltd.

MOYB has several accounting software programs ranging in price from $99.00 for Business Essentials and First Edge small business accounting software to $299.00 for more advanced accounting programs. If you have some accounting knowledge than MYOB-BE is a good solution for a small business. It is user friendly and is priced competetively at $99.00

The main advantages are:

• Step by step instructions for each accounting task
• Excellent Help Section and the program is easy to Navigate
• Easily Customizable Forms
• Good Interface with Online Banking

There are a few shortcomings. It has no feature to create Vendor Credit Memos and inventory costs are based on average costs. Overall this is also an excellent program and very affordable for the small business operator.

Conclusion

Because Quickbooks is so widely used, we favor it for small businesses. Before you buy, you can evaluate it by downloading "Quickbooks Simple Start FREE." You can graduate from there to the paid version of Simple Start or Quickbooks Pro. Another advantage is that it interfaces with many other business software rograms on the market. If Quickbooks does not fit within your budget or you are worried that it is too hard to use for an accounting novice, then "Bookkeeper 2009" is a good option. It has everything a small business needs and is very user friendly for accounting beginners. Bookkeeper will meet a small business' needs at the very competitive list price of only $39.99. "MYOB Business Essentials" price is between the two and is a good stand alone package as well. It is user friendly for the non-accounting professional, but not as widely used as Quickbooks.