So your business needs new accounting software, eh?

Hopefully you’ve been lucky and your small business has been expanding so rapidly that you realize the need for new accounting software. If you’re like most small business owners you remember how long it took to get your head around that Microsoft Excel spreadsheet. Most small business operators don’t know much about software but they know that they don’t want to spend a lot of time and money on some new software solution that they don’t need.

A look at what you do to determine which accounting program is best

Unfortunately there is no easy answer to exactly which accounting software package you should start with. Depending on which type of business you’re running. ‘Quicken Premier Home and Business’ and ‘QuickBooks Pro’ released by Intuit are both excellent as is ‘Peachtree Accounting’ by Sage. The problem is which one is best for your accounting needs. Here’s a quick rundown of some common small business operations and the software recommended for them.

Accounting software for the self-employed

Self-employment is defined by one or more owners and no employees. The need to manage both personal and business finances at the same time is more common for the self-employed than any other small business operator. Luckily, Intuit has recognized this need and answered with Quicken 2005 Premier Home and Business. If you receive income from a freelance writing career, investments or weekend house-painting jobs, less than a hundred dollars can have you managing all your finances with a single application.

Accounting software for small businesses with employees

For entrepreneurs with accounting needs like payroll reporting and check writing QuickBooks Pro may be the solution you’re looking for. ‘QuickBooks’ is more expensive than ‘Premier Home and Business’, but, at the $100 mark for the basic starter version it’s still affordable. If you’re looking to purchase the full featured version of QuickBooks you’ll need to shell out around $300.

If it’s features you desire than Peachtree may be the accounting software for you. Last time we checked its starter package was $99.95 and the full featured version was $199.95 about a hundred less than QuickBooks. Both high end packages offer similar features and functionality except for one thing, compatibility.

QuickBooks for compatibility

Currently, the Bank of America, SunTrust and others provide files that work directly with QuickBooks. If you go with Peachtree you may find yourself copying hundreds of figures from your software to your bank’s applications by hand. Check with your bank’s online services to make sure that whichever software you choose is fully compatible with their applications.

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