Accounting software
I had a hard disk crash earlier this month. I didn’t lose much data, because I really try and make sure that I’ve got it all backed up as much as possible. But it was my last XP system, and it had Quicken 2000 on it, which is what I use to keep my books.
Why does nobody talk about keeping books? In all the courses I have seen about internet businesses (and that’s a lot), nobody ever mentions this. The fact of the matter is that if you want your business to become anything at all other than a hobby, you’re gonna have to keep books (or get someone to do it for you).
I don’t like keeping books. I’m pretty good with math, but I just find it boring. I also think much of it could be automated, and that’s something I’m looking to achieve in the future. But I’ll tell you what! I always feel good after completing the book-keeping. It’s like doing the tax return. I hate it when it comes round to be done, but then once it’s done, it’s nice to see that I’ve made some money during the year, and to know exactly where I stand on my income tax repayments.
So, anyway, back to the package I use. As I said, I used to use Quicken 2000 by Intuit; I own a fully-licensed copy of it. But Intuit don’t sell Quicken 2000 in the UK any more. I could have gone for QuickBooks, but then we’re talking about spending more money.
I was already aware of an alternative that might work OK, so I thought I might try that. GnuCash is free, open source software that has enough in it to meet my needs. That includes things like multiple currency payments, generating invoices, depreciating assets, and generating the reports that allow me to do my tax return. And I like free software products. They don’t cost me any more money as I grow my business (which I have started to do; my wife now handles some of the help desk requests), and many of them are excellent quality.
The documentation that comes with it is OK. It’s not brilliant, but it does briefly explain the principles of book-keeping and get you started. Some of it goes into technical details of file formats and similar, and you probably won’t need that, but it’s good that it’s there. Realistically, I would suggest either getting advice from an accountant or buying a book on the subject if you’re new to book-keeping.
I just thought I’d open a discussion regarding what you use. Do you use GnuCash? Quicken? Sage? Anything else? Any good or bad experiences to relate? Post a comment here! Thanks.
David
24 December 2009, 00:47
Hi David,
I use QuickBooks now. You don’t have to have the latest version! Get an older one on Ebay and it will work just fine. Don’t want to spend any money? Go to the QuickBooks site and download a free simple stepped-down versison which would normally be fine for a tiny business or hobby.
Before I had the QuickBooks I kept everything very simple. One spreadsheet for Income and one for Expenses. And I was lazy as heck and would wait until the last minute to do them before I had to do my taxes. Just be sure to have every receipt.
To keep everything organized I use those manilla envelopes. Everything including the tax return goes in there and nothing gets lost. I write the tax year on the outside and file them by year. (big hint: keep them FOREVER)
Hope this helps!
Levada Pendry
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24 December 2009, 01:25
Hi David
Yes you are right about that no -one seems to talk about the admin side and how to structure the business side.
Thanks for the advice on the free products will check them out.
Merry Xmas All
Brad
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24 December 2009, 01:42
Total no-brainer: Quickbooks Premier set up for services.
If you are serious about your business, and it IS a “business”, then this is just one of the “Costs Of Doing Business”.
Quit whining and spend the dosh- QBW Premier will actually SAVE you money, both in missed exemptions and on professional fees at the end of year. I mean, what do you think your account is going to charge more for:
A nice, clean QB file… or a paper envelope full of receipts? Hmmmm?
LOL, like I said, Nullus Cerebrum…
Peace,
Gman
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24 December 2009, 02:23
I’ve used QuickBooks for many years and it makes the job so much easier than when I did everything using ledger books and a calculator!
I just throw all of my receipts into a file folder and then sit down at the computer once in a while to enter the numbers into the software.
With just a few clicks, I can get reports on any aspect of my business. A couple more clicks and I can re-sort my report to give me any kind of details I want.
I use TurboTax for my income taxes (United States) and it will import my data from QuickBooks if I want. It also works with Quicken. Not sure if they market a UK edition, but there’s bound to be something similar.
Happy Holidays!
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24 December 2009, 11:30
What are books? I’m not even sure I know what they are if you guys are talking about using software for it. Why?
I log everything in Excel. 1 workbook containing:
- 1 worksheet of expenses per month for my business account expenditure, including Paypal
- 1 worksheet of expenses for the year, for my credit card expenditure
- 1 worksheet for income for the year
I log everything in UK pounds, even if I bought them in dollars.
Receipts go in manilla folders, grouped by month to correspond to the spreadsheet entries.
My accountant has been charging me less over the last few years so this must be Ok with him.
Luke
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admin Reply:
December 27th, 2009 at 01:43
Thank you to all five respondents. So three of you use QuickBooks, one of whom thinks I’m a cheapskate.
One of you uses Excel and my information about GnuCash was valuable for one of you.
When I used Quicken 2000, it did a very good job. I can’t complain about that. But I do like the double-entry book-keeping style that GnuCash uses. Also, and this may be unique to me as a skilled software developer, I can add to GnuCash if I need to do so. GnuCash seems to have everything I need in it; it’s a bit fiddly in a few areas but on the whole I think it’s what I will be sticking with.
Thanks all once again for your opinions.
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30 December 2009, 16:28
Goodness! I thought I was the only cheapo still using Quickbooks 2000. Of course there is no support for that version. And, God forbid, you should call the help desk, the only thing they want to do is HELP YOU upgrade. Haven’t yet, but certainly will check out GnuCash. Thanks for the info.
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