ADVICE
Accounting programs simplify business
By Kim Komando
Search the Web for small-business accounting software and you'll find dozens of titles. With so many choices, purchasing the right software for your small-business can be a knuckle-biting experience. But it doesn't have to be.
According to market information company NPD Group/NPD Techworld, more than 80 percent of the top-selling accounting titles for 2003 came from just two companies — Intuit and Peachtree.
Intuit's QuickBooks (http://quickbooks.intuit.com) line of accounting software dominates the landscape. Six of its titles totaled 73.9 percent of the market share.
According to Intuit, it's because of accountants. More than 140,000 accountants use QuickBooks and recommend it to their customers. Exchanging data and working with clients who use different accounting programs is next to impossible.
Intuit's entry-level program is QuickBooks: Basic 2004. It retails for $200 and runs on Windows 98, ME, 2000 or XP. It includes all of the fundamental elements needed to run your small business. With it, you can create purchase orders, enter bills, track expenses and produce various reports.
QuickBooks options
QuickBooks: Pro 2004 has all of the features of the Basic version plus more tools and features for $100 more. For example, the Pro version integrates with other software such as Microsoft Outlook. This will save you from maintaining two contacts lists. You can also customize your prices based on different groups of customers. A five-user license is $750.
QuickBooks: Pro 6 for Mac is available for $300. It runs on OS 9.2.2, 10.2.7 and 10.3. It doesn't have all the features of the Windows Pro version. However, Mac and Windows versions can share data.
There is an online version of QuickBooks as well. For $20 a month, you receive most of the same features and tools as QuickBooks Pro. The information is stored on a secure Web server maintained by Intuit and backed up daily.
There are several advantages. You won't have to pay for continual software upgrades; you can access your information remotely 24-hours a day and your accountant has instant access to your latest financial data.
Peachtree products
Although not as ubiquitous as QuickBooks, Peachtree software (www.peachtree.com) had three of the top-10 small-business accounting titles in 2003.
Retailing for $100, Peachtree First Accounting 2004 is its most basic title, running on Windows 98, ME, 2000 and XP. It provides tools and features, such as invoicing, payment status tracking, bill payment and 35 customizable reports.
If you're looking for more features, Peachtree Accounting 2004 contains everything in First Accounting 2004, plus inventory tracking, e-mail alerts and integration with Microsoft Excel, for $200.
The company also sells the Peachtree Complete Accounting 2004 for $300. There is a five-user license for $700. It runs on Windows NT, in addition to the other four Windows versions. It has the standard features of Peachtree Accounting 2004 and also offers more than 125 customizable reports, variable item pricing and audit trails.
Look to the future
When purchasing accounting software, look for features and reporting capabilities that you need now, not in five years. In five years, anything you buy today will be obsolete.
In the same vein, it's best to choose a product that can handle your company's growth.
And finally, your accountant must be familiar with the software. On occasion, your accountant will probably want to check the books and make adjustments to the files.
