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Do I Really Need QuickBooks for My Start-Up Business?
And, If I Do, How in the Heck Do I Figure Out Which
One?

 - by Todd Jensen

(c) Todd Jensen - All Rights Reserved
 http://www.freebusinessstartupinfo.com
 http://www.newein.com

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If you own a start-up business, you’ve probably
heard over and over again that you should get
QuickBooks for your business.  This can be a great idea
for most businesses, but the dizzying array of choices
can leave any business owner reeling.

First, consider why QuickBooks should be your first
choice.

QuickBooks was the first nationally recognized
accounting software program designed for business
owners, rather than accountants.  Starting in 1992,
QuickBooks software has made computerized accounting
accessible to every business owner.

QuickBooks uses real accounting methods, but allows
users unfamiliar with accounting theory to record
business transactions using everyday forms.  Most
regular business transactions can be entered into the
computer by filling out traditional invoices, bills,
checks, and deposits.

While the accounting profession in general turned up
their nose at this revolution, business owners quickly
embraced QuickBooks.  QuickBooks listened and learned
from its users, and, 15 years later, now has the most
widely used accounting software.  In fact, I have heard
estimates that over 80% of U.S. businesses use
registered copies of QuickBooks.

Right now, QuickBooks is really your best option in
small business accounting software.  Microsoft’s Small
Business Accounting looks promising, but would not be
my recommendation for a start-up business.

If you rarely turn on your computer, don’t feel bad or
guilty about not buying QuickBooks.  If you won’t use
it, it really is just a waste of money.  Find a good
accountant who can put your information together on a
monthly basis (this is called a write-up service by
accountants), and move on to the things you do well.

If you just want to way to save time in certain areas
of your business, such as creating checks or keeping
track of accounts receivable, you can pair QuickBooks
with a write-up service.  This is a very good choice
for many small or start-up businesses.

If you want access to real-time business information,
and are ready to computerize 100%, then find a good
QuickBooks accountant to help you set up and maintain
your data file.  QuickBooks makes business accounting
much easier than traditional accounting packages, but
it’s best to have a qualified accountant review your
file quarterly, at a minimum.

If you want to hire a professional, you can use an
outsourcing service to enter all of your accounting
details in your file for you, allowing you to use the
software as a management tool to monitor company
profitability.

The options to use QuickBooks as a business tool are
limited only by your imagination, but the deciding on a
QuickBooks version can be somewhat like picking out an
ice cream flavor-they are all good, but some may not be
the right fit for you.

If your business is truly mobile, and you need to have
access by multiple users in multiple locations, you can
use the online version.  The first 1-3 users cost
around $20 per month.  The earlier online versions were
somewhat limited, but the 2007 version provides almost
all the features of QuickBooks Pro.  Processing time
may be somewhat slower than using in-house software, if
your internet connection is slow, but the monthly fee
allows you to access the latest version without paying
for upgrades.  This is a great option for mobile
businesses or service businesses that have users in
multiple physical locations.

If you are just getting started with accounting
software, and do not plan on using QuickBooks for
payroll, you may want to consider the new Simple Start
version.  The retail cost is around $100, and this
version can perform all the other basic accounting
functions.  You cannot have multiple users with Simple
Start.  This is the “no-frills” option, and good for
many small or home businesses, and even gives you the
option of adding credit card processing for an
additional fee.

If you plan on using QuickBooks for payroll, you need
to purchase QuickBooks Pro or higher.  QuickBooks Pro
is the best option for most small businesses, at a cost
of about $200 retail per copy.  You can add multiple
users by purchasing additional copies, and can perform
all but the most specialized accounting functions. 

If you would like reports and charts of accounts pre-
set by industry, QuickBooks offers a variety of Premier
versions.  The Premier version has a more advanced
inventory assembly function, as well as functions for
business plans and forecasts.  The Premier version was
offered on the QuickBooks website for about $340,
discounted from the regular almost $400 retail price
when I wrote this.  If you are a contractor,
manufacturer that wants to use QuickBooks for
inventory, or a professional service provider that
needs to set up multiple billing rates, you should
invest the extra in the Premier version.

If you are a new QuickBooks user, the extra bells and
whistles in the Premier version probably are not worth
the extra cost, unless you would like a specialized
pre-set chart of accounts.  If you purchase the
Accountant’s version, you can “toggle” to each of the
other industry versions, allowing access to ALL the
industry versions for the same cost. (Hint here:  Buy
the Accountant’s version if you purchase Premier).

Most start-up businesses will not need to look further
than this, but QuickBooks does have an Enterprise
version for larger businesses or groups that need more
than five users.  The cost ranges from $3,000 to
$7,500, depending on the number of users.  The beauty
of this is that your company will have to get pretty
dang large before you completely grow out of QuickBooks
The changes in this version makes it very plausible
that your company could potentially use QuickBooks
forever, regardless of how big you grow.  As more
dedicated QuickBooks users grow out of the smaller
versions, the capabilities of the Enterprise version
continue to expand.

If you are a dedicated Mac user, QuickBooks 2007
finally has a new Mac version.  It is very similar to
QuickBooks Pro, but has the ability to share data
between Mac and Windows, which is great, as most
accountants use the Windows version.  It retails for
about $200.

QuickBooks payroll requires an additional fee, ranging
from $69 to $254 per year.  Alternatively, you can use
their payroll tax deposit services for a monthly fee,
like a traditional payroll service bureau. 

If you plan on using QuickBooks for payroll, look at
the payroll options first, as you can sometimes add
software upgrades at a reduced price if you include
them in with your annual payroll subscription.
QuickBooks payroll usually only supports the latest
releases, so plan on upgrading at least every other
year if you want to continue to use the payroll tax
tables.

Bottom line, use the online edition if you must have
users in separate physical locations, or would like to
be able to use the software from both work and home.
Simple Start is your option if you do not have payroll
and only need one user.  Buy Premier if you like the
extra bells and whistles, or have specialized needs.
Everyone else, use QuickBooks Pro.

The great thing about QuickBooks is that your data file
can transfer between types, except online.  So, don’t
worry if you want to use Simple Start.  Keep growing
your business, and you eventually will be big enough to
need the Enterprise version, and hopefully profitable
enough to be happy to pay for it!

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Discover Why Most Businesses Fail and What Are the
10 Steps You Should Follow to Dramatically Increase
Your Odds of Success.
Todd Jensen Explains What Are the Things You Need to
Do to Start a Successful Enterprise and How Do You
Avoid the Traps That Cause Business Failure.
FREE Details:==> http://www.freebusinessstartupinfo.com
                        http://www.newein.com
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