Starting a Bookkeeping Business

What accounting and bookkeeping software do I need?

In this article you will learn how to choose accounting software for your new accounting and bookkeeping service. The article looks at different Trial Balance Systems, Data Entry Systems and Writeup systems, and compares the pros and cons of each for your new business.

If you have already purchased a computer you have made the largest investment already. The second largest investment could be the software, so here's some information you need to know about accounting software.

QuickBooks

The most commonly-used software used by small to medium-sized businesses is QuickBooks. It can perform all of the basic functions needed by a small business, from inventory to payroll functions. Also, its price is within reach by even small businesses. It is easy to learn and quick to enter data into. QuickBooks has it all, and at a reasonable price. Since 80% of all small businesses that do their books electronically use QuickBooks, it is a must-have if you want to service small-business clients.

Universal Accounting has created a comprehensive QuickBooks Pro course that will teach you to master QuickBooks quickly. It also integrates extremely well with the Professional Bookkeeper course. What the Professional Bookkeeper course teaches you to do by hand, the QuickBooks training program teaches you to do electronically.

Learn More About the Fastest Path to QuickBooks Mastery

Types of Accounting Software

First of all, accounting programs are divided into three general categories:

• Trial Balance Systems
• Complete Data Entry Systems
• Write Up Systems

Trial Balance Systems

Software in the first category, Trial Balance Systems, is used primarily by auditors to prepare adjusted, fully disclosed, financial statements. That's a step you won't need to worry about unless you are a CPA performing an independent audit on a large company. So, no further discussion is warranted.

Complete Data Entry Systems

The Complete Data Entry Systems are the most commonly used software programs by small businesses. These are the software programs you can find on the shelves of software stores. Their intention is to provide all accounting functions inside the business. They are typically designed to write checks, prepare invoices, reconcile bank statements, etc. . . .  Because these are most often designed for the non-accountant, they require rigid steps and are intended to be used inside the business, or "in-house." They don't lend themselves well to freelance, after-the-fact work that you will be performing for small businesses.

Write Up Systems

That brings us to the third type of software called "write-up systems." These software names are not as commonly known, unless you are an accountant for multiple companies. Write-up software programs are designed for use by accountants. They provide for versatility and flexibility, which are both key components to an efficient accounting business.

Universal Accounting Systems has surveyed many of the write-up systems available today. We ranked them on features, cost, ease of use, ability to learn, adaptability, speed of entry, and versatility.

If you have yet to purchase a computer then you will want to know this. For most write-up packages you don't need to have the latest and the greatest. In fact, you can purchase a used computer, for a fraction of the cost of a new one, that will probably work very well.

We have found, for most start up businesses on a budget, that although QuickBooks was written as a complete data entry system, it has great flexibility and, with a little understanding, can be adjusted quite easily to be used effectively for write-up work.

A printer is an important part of your computer system. Probably the best value for the money is an inkjet printer. They will usually run between $100-$200. However, check on the costs of ink cartridges. These could make a cheap printer cost more in the long run.

If you do a lot of printing and money isn't a big concern, you may want to consider a laser printer. For the higher cost, you will get a more permanent image (inkjet printing can smear if it gets wet) and a higher printing speed. If you prefer the laser printer, it's probably a good idea to look at the mid-priced models. You will most likely regret the purchase if you buy one because it was the cheapest brand. Also compare the price of toner cartridges as this will affect the operating costs. Remember, laser printers must warm up before they will print. If you are frequently printing many pages, they are great. But if you only print an occasional page, an inkjet may be faster.

In addition to accounting software, you will need office suite software with a good spreadsheet program like Excel. Microsoft Office is ubiquitous and will make your files compatible with almost everyone.

Comprehensive QuickBooks Training

Universal Accounting's QuickBooks course teaches you mastery of QuickBooks in the shortest time possible. And because it goes hand-in-hand with the Professional Bookkeeper program, you can learn the entire accounting process both by hand and on a computer.

For more infomation about getting started successfully with your own accounting and bookkeeping service, check out our courses.