Small Business Accounting Software: QuickBooks Vs. Sage. Vs. Peachtree. Vs. Microsoft Office Accounting – Part Two
The first part of this article discussed the things that needed to be a part of a small business accounting package, and what help the existing software in the market typically needs, and whether or not a small business can actually do without the help of an accountant or book-keeper. Let’s put all of that aside, and now simply talk about the accounting software available in the market as is. The packages I have used, and most of my clients use, and ones that are available almost globally will be the subject of discussion here.
Of the four packages mentioned here, QuickBooks and SAGE are scalable from small business to medium business. So before I dwell into which is superior and which is not, if you think you have a business that will grow or develop at a rapid pace, and will outgrow the circa definition of a Small Business, maybe you’ll have to stick to one of these. That’s not to say that Peachtree or Microsoft Office accounting cannot support medium size business. It can, with intelligent, creative (but legal) accounting.
QuickBooks – The Good
In my opinion, QuickBooks is probably the most comprehensive of out of the four packages (QuickBooks, Peachtree, Sage & Microsoft Office Accounting). It provides relatively efficient functionality, with a standard interface, customizable reporting, and it won’t cost you an arm and a leg. Feature-wise, it probably contains more than any of the other three pieces of software; it will do the basic accounting, invoicing, payroll subscriptions, credit card transactions, GL, PL & SL, prepaid (well, sort of), customer statements, financial reporting, etc. etc. etc. Quickbooks ALSO has some concept of drill down functionality, which can be relatively insightful at the click of a button.
Another area that QuickBooks has a big plus in its wide market area and availability of support. It is relatively easy to find QuickBooks consultants (certified or not). The support network is out there, and their own web site can guide you on where and how to find support. Plus, if you’re in the US, QuickBooks is the software of choice for many US Universities, making most accounting graduates QuickBooks literate, if not experts.
In addition to the friendly interface, QuickBooks is relatively self explanatory. The titles in the menus, the screens, the interface, the ease of use, all makes it a very efficient piece of software, especially if you’re a computer literate accountant. Even if you’re not, the learning curve is not too high.
QuickBooks – The Bad
From my position, I really don’t have much bad to say about QuickBooks. I’ve been using it for several years, and functionality wise, there’s really not much wrong with it (in comparison with other accounting / bookkeeping software in the market). The only possible drawback is that it’s ultra feature richness may make it confusing for the not so computer literate accountant/bookkeeper.
Technically, QuickBooks has one pitfall. From year to year, newer versions come out, and compatibility has been an issue in the past. If you upgrade, you have to convert data, and although it’s not that tedious with the new version, it would be much simpler if Intuit simply made Quickbooks backward compatible, which it probably doesn’t for reasons of profitability.
Sage – The Good
Really, I don’t have much to say here. In the near future, you will see me as both a QuickBooks Pro Advisor and a member of the Sage Accountancy Club, and that’s because it is good for business, and the UK is infested with Sage Line 50. It’s an okay piece of software. The interface is relatively standard, and it can pass off as a bookkeeping / accounting software, although all the others will give it a run for the money, and probably beat it.
Sage – The Bad
There’s a lot to say here, but I won’t bad mouth them too much. No drill down functionality, unfriendly interface, unfriendly usability, restrictive, poor layout, etc. etc. Clearly, you can tell that this is my least favourite software, so I’m going to stop talking about it now.
Peachtree – The Good
Peachtree is a fantastic piece of software. Although I trained on QuickBooks Pro in university, the first piece of accounting software I used on the job was Peachtree Accounting 2006. I was pretty reluctant about it first, but as it turns out, Peachtree is a wonderful piece of software.
It’s a less dull, less serious looking version of Quickbooks, and offers virtually all the functionality of QuickBooks. There’s less gray (unlike Quickbooks & Sage); the interface and layout are very clean, the different templates are customizable (as they are in QuickBooks), and it offers all the supplementary functionality (credit cards, good journal layouts, invoicing, POs, SOs, etc. etc.) . All in all, this is a great piece of software, and is a wonderful place to start for any small business. It’s not to heavy on the pocket, and you don’t have to be a rocket scientist to figure out how it works. Oh, and Peachtree offers some drill down functionality like QuickBooks (unlike Sage).
Peachtree – The Bad
Peachtree is only US compliant. The software is not available for purchase or use outside the United States, and it doesn’t support multi-currency. What’s worse is that Sage has bought Peachtree from Best Software, and it has become Sage’s way into the US market. As long as they don’t make drastic changes to Peachtree, it is a fantastic piece of small business accounting software.
Microsoft Office Accounting – The Good
Okay, this is Microsoft’s first step into the Accounting domain. Originally termed Microsoft Small Business Accounting 2006, the software was renamed to Microsoft Office Accounting, and rightly so. It’s a sharp mixture of QuickBooks and Peachtree functionality the Microsoft Way. What’s good here is that this is one of the very few small business Accounting Packages on the market that will support multi currency without any issues, and it can probably pass off as a software that doesn’t necessarily require you to be very accounting literate. Why, you ask? It shares a striking resemblance to Microsoft Office, hence the name Microsoft Accounting. The idea here is that if anyone can use Microsoft Office Products, they should be able to use Microsoft Accounting.
Frankly, I have been impressed with Microsoft’s first try at Accounting Software. It may need some bug weeding, but all in all, this is a good starting point for Microsoft, and after months and years of using QuickBooks, Peachtree & Sage, it didn’t make much for me to get comfortable with Microsoft Office Accounting; just a couple of hours. This is a very affordable software for most small businesses, and provides the BASIC functionality of Quickbooks & Peachtree, without passing off as a complex, confusing or difficult to use accounting/bookkeeping package.
Microsoft office Accounting – The Bad
At this point, since this is something that is actively being developed my Microsoft, credit card processing, payroll etc., though existent, are slightly limited. Although most small businesses don’t use these features from within the software, they are useful considerations, as a small business truly sees the use and efficiency of the software if functions like payroll are managed from within the software. This software is certainly scalable, but at this point it’s a very good basic package for small business, and scalability is yet to be seen.
I’m sorry I’ve had to cut this article short. I had intended to write very detailed reviews, but I just haven’t been able to find the time to do it.
If you’re in the UK and looking for help with any of the above products, feel free to contact me or VAFTA Solutions Limited. Ultimately, what’s best for you depends on your business habits, practice, requirements, and your accountant/bookkeeper.
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April 6th, 2008 at 12:56 pm
I’m actually beginning to agree with everyone. Microsoft Office Accounting is proving to be much more efficient than QuickBooks.