I have spent most of the weekend updating my business accounting software. I had been running a 2008 version of Peachtree Complete and am now running 2013 QuickBooks Premier.
I don’t think I want to get into a blow by blow comparison of the two products. Both products are highly motivated to say they are the one and only savior of my business with the ultimate accounting solution either built in or available at additional cost. The nature of the beasts.
In my opinion either one can get the job done as a necessary evil. It’s actually amazing how something so complex as a business accounting package can be sold at such a low price. Crunching all the numbers in running a business can be a very complex problem.
I have been running the books hands on in various businesses for well over 20 years. Now I’m just as a sole proprietor, so I am not dealing with payroll and all the federal and state withholding. Much easier than when I had 10-15 employees.
I still run accrual accounting today so keeping books is my necessary evil I mentioned. I collect taxes on all my in state sales and need to keep that on record. I also have inventory and the software manages all that for me.
I actually enjoy the process of keeping the records in a masochistic sort of way. If a business person wants to truly understand how their business is running they should do their own books. At least when small and getting started. Then when looking at the P&L and Balance statements after your big enough to have hired that work out, will have a lot more meaning.
I was hired and trained by a major corporation as a business consultant for HVAC contractors. One of my main functions was to train business owners how to generate business statements that were not designed just to pay the lowest taxes. Taxes are what most people think typical book keeping is all about.
I loved it when I gave contractors the mental tools and the accounting methods where they could actually manage their business. Many started seeing their real costs for the first time. Setting up the proper chart of accounts is the key.
No more lessons here from me. I just want to say it is such a wonderful feeling when doing a change like I just did and when you punch the final button, all the numbers agree and the whole world is in perfect balance. If you have ever done book keeping you know what I mean… It’s been a great weekend… loved the pain.