Which accounting system should I use?

06 August 2013 / Video Blog / Comments Off on Which accounting system should I use?

Welcome to another edition of Tuesday Tidbits where we make accounting and tax simple. I'm your host Charles D. Shapero CPA from Widget Bookkeeping and Tax, and today we're going to talk about accounting systems and whether you choose Excel, Quicken or Quickbooks. That's a question we get a lot. I like Quicken, can I use that for my business? The answer is typically is no. Quicken is not robust enough, it's really a glorified checbook. It's something you can use for your personal finances, when you really need just loose information. What we need from our accounting system is we need is an income statement and balance sheet. Because if we ever have to go out for a loan that's what they're going to ask for. If we ever have to sell our business or we want to sell our business, they're going to want to see our financial statements, and Quicken is not robusst enough. It can't produce the reports necessary to satisfy those requirements. Neither can Excel, but at least Excel is better than having no accounting system. We have to be able to tell what your profit and loss is. For estimated tax purposes, for tax return purposes, for you to gauge how your business is going. So if you're using nothing at all, Excel is better than nothing because at least we can get some reliable information, Quicken is really almost worse than nothing, because you have to learn how to use it and then it's really not giving us the information that we desire. Bottom line Quickbooks is the best option for a starting business to set up their accounting system because it's robust enough to handle accounts receivable, accounts payable and all the reports we talked about. At Widget, we eat, drink and breathe Quickbooks We can help you install is, we can help you learn how to use it, and if you decide you don't want to do it, we can maintain it for you monthly. This concludes today's Tuesday Tidbit, see you next Tuesday. Widget Bookkeeping & Tax: Know More, Keep more

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