Part 1 - Accounting Software

I often get the question if a startup business can run their accounting in Excel or with pen and paper for now. The answer is a simple yes you can. It’s not even that hard to do. I would call it a great idea - if it wasn’t such a bad one…

Accounting is a cornerstone support function to running a business. It gives you important insight into what is working well, and what isn’t in your company; and the right time to start your books in a software form should be before the first cent is spent on your business. In fact, the only business expense I suggest before installing your accounting software is buying it, (and unless you have one, the computer to run it.)

Having it set up from day one also saves you money In tax preparation, accountants, audits, getting small business loans or investors, and everything else that might happen down the road which requires access to financial data.

Why you should have this ready to go before you even spend a cent on getting your business license is simple, you will save a lot of time, and a lot of money doing it from day one instead of trying to transfer it later. You will also have the opportunity of learning it as your business grows, when transactions are fewer and your business is less complicated. This creates a learning curve that is manageable, instead of dropping you in the hot seat having to learn it after your business is already off and running.

If you have already started your business and you still don’t have accounting software to help you. Don’t waste another day without it. Get it now, learn it, and you will save yourself a lot of headaches later. The longer you wait, the sorrier you will be in the end. If you’ve been running a business for a couple of years, you will probably have to hire a very expensive accountant to set it up for you and transfer your books to it. "Saving" the expense now is just going to cost you in the long run.

Doing it right from the start however can save you money on your taxes, show you where your real money pits are, help you get bills paid on time, get your billing out on time - the list goes on. Investment wise, this is one expense that will pay for itself in a very short timeframe.
I am a great proponent of QuickBooks. That being said it isn’t the only option out there by far. ANY good bookkeeping software is preferable to none. There are no two ways about this.

I like QuickBooks because it is easy to use, reasonably inexpensive, and it comes with great user support, manuals and a wealth of information out there. Along with Peachtree, It is also about as close as you can get to the "standard" accounting software for small businesses, and therefore you will have a good chance of a future employee knowing how to use it.

In the end, whether you chose QuickBooks, Peachtree, Microsoft Office Accounting, or any of the other solutions out there isn’t important. What is important is not going a day longer than you have to without it.