Posted by Alec Jones on 30 Aug 2007,
(98) Comments — Finance & Tax
I am often asked by those seeking to start their own businesses what software I use for managing customer orders and accounting for my own online business. Disappointingly, few software packages offer the ideal balance between 100% full customizable functionality and cost, at least for those on a shoestring budget. However, three come close: Quickbooks Pro (or Premium or Enterprise editions) by Intuit, Peachtree Complete Accounting by Sage Software, and Microsoft Office Accounting Professional. Of these three, my software of choice is Quickbooks Pro.
There a number of articles on the web that review each of these three products. So, rather than regurgitate detailed reviews, let’s dive into the primary reason why I use Quickbooks. Perhaps, it’s the only reason any small business owner actually needs to consider.
Choosing Quickbooks was a monopolistic no-brainer
Believe it or not, I chose Quickbooks for my business without doing any detailed comparison of features among the candidates. I chose Quickbooks simply by the fact that Quickbooks has something like 87% market share in small business accounting software.
Does that mean that marketing hype got the best of me? Or that a coming monopoly in the sector trapped me? No, but kinda.
The shear fact Quickbooks dominates the market means that more online storefront software and partners integrate smoothly with my customer and accounting system. Out of the box, for example, Quickbooks allows me to print FedEx and UPS straight off of customer receipts and invoices—a true time-saver. Similarly, Quickbook’s market strength attracts a large number third-party developers, who sell optional plug-ins that give you additional advanced features for managing inventory reports, doing ecommerce, processing credit cards, banking, and more. Last I counted, there were over 400 such plug-ins available.
Last but not least, dominate market share means that most accountants know Quickbooks well. In preparing taxes, all you may need to do is email your accountant your Quickbooks file.
Being a penny-wise small business geek, forgoing detailed comparison shopping of available small business account software was an unusual step for me. However, to date, I have not had any regrets.
A word or two on Peachtree and Microsoft
While the “monopolistic” reason above may be reason enough to choose Quickbooks, there some distinguishing features worth noting in Peachtree and Microsoft.
Peachtree’ strength lies in its inventory management, especially for manufacturers. Unlike Quickbooks, Peachtree lets you create advanced sub-assemblies that can consist of up to 300 components. If you need detailed inventory capabilities, Peachtree may be the better way to go.
Not surprisingly, Microsoft Office Accounting touts smooth integration with its Microsoft Office applications such as Word, Excel, and Outlook. However, the number of features and add-ins pales in comparison to those available for Quickbooks and Peachtree, and integration works only with Microsoft Office 2007 and above.
Notwithstanding the differences, Quickbooks, Peachtree, and Microsoft Office Accounting will do the basic functions you need:
- Manage customer and vendor account information
- Create and print receipts, invoices
- Keep track of inventory
- Produce financial reports
- Handle employee payroll (additional software license required)
Manufacturer List Price
Targeted to small businesses with 1-20 employees
- QuickBooks: Simple Start Edition 2007 — $99.95
- QuickBooks: Pro Edition 2007 — $199.95
- QuickBooks: Pro Edition 2007 (three-user) — $499.95
- QuickBooks: Premier Edition — $399.95
- QuickBooks: Premier Edition (five-user) — $399.95
- Peachtree Pro Accounting 2007 — $169.99
- Peachtree Complete Accounting 2007 — $269.99
- Peachtree Premium Accounting 2007 — $499.99
- Complete and Premium Accounting (five-user) — $699.99
- Complete and Premium Accounting (multi-user) — $1099.99
- Microsoft Accounting Express — free download
- Microsoft Accounting Professional 2007 upgrade — $149.99
Targeted to small businesses with 20+ employees
- QuickBooks Enterprise Solutions (five-user) — $3,000
- Peachtree Quantum — $3,750
See more practical business tips.




Comments for "Why My Small Business Uses Quickbooks"
31 Aug 2007 at 10:45 AM
Two Thumbs up for Quickbooks. I use Quickbooks Pro and love it. It’s easy to learn, and produces great reports and professional looking invoices, that are a cinch to customize.
01 Sep 2007 at 01:35 AM
Hey there, Barbara.
Just curious, what was your process for choosing Quickbooks over other options? Did you happen to be like me and make the “monopolistic no-brainer” decision?
Kind regards,
Alec
02 Sep 2007 at 02:59 PM
Hi Alec,
It was all about a referral.
Just like our business has been built by referrals, I was referred to QuickBooks Pro, by a trusted contractor friend of ours. He told me to make sure I go with QuickBooks Pro. I did, and have not been sorry. It’s a perfect match for our construction business.
On one of my blogs, I often do product reviews. QuickBooks is one I’ve done. But, like Oprah’s “Favorite Things”, I’ve got to really love something, before it ends up in my “Gotta Have It” category. Needless to say, QuickBooks placed in that category.
05 Sep 2007 at 11:35 PM
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05 Sep 2007 at 11:57 PM
Asako,
Thank you for visiting my blog at http://www.observationmountain.com
My cleaning “gotta have it” list contains products I can’t live without. Since time is so important, I’m always on the lookout for great products that save time, and do what they claim they do.
It’s a pleasure to share that information with others.
12 Sep 2007 at 04:42 PM
Hi Asako,
Thanks for the review. I have heard many great things about Quickbooks but I use Sage, because my accountant uses it. I think Sage is more popular in the UK than America.
17 Sep 2007 at 01:03 AM
Hello Catherine,
That is true, many US software may not be most popular in Europe. I have done quite a lot of works in the healthcare provider software, and in that industry, software is localized in each country market in Europe, due to language issue, practice issue, regulation issue, etc. Of course, enterprise domain is less complex than that, but I could easily imagine each market has each favored software.
Thank you for your input!
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I am looking into buying Quickbooks 2008. There’s a big price difference between the 2 versions, what is the difference? I don’t want to pay for features that I am not going to use.
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Hi there, i have quick books premier 2006 version on two computers, one has my company files on it and the other has none, how do i move one of the company files onto the computer that has no company files?
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How can a small business survive and prosper in markets with larger and stronger competitors?
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Over 60% of small businesses fail due to a lack of planning and execution of a business plan. When businesses are so small it is rare to have an HR manager, because of that training and follow-up is non-existent. Who would be accountable and how could management implement a training routine to make it beneficial and cost effective?
27 Dec 2009 at 11:36 PM
I need to know if there is a way to change the payments i have entered into Quickbooks. What I have done is pay my sales tax due to the state through bills as opposed to doing it under the sales tax link provided in QB 2007. What this has done is not correctly listed the taxes I owe or have paid so far this year.can anyone tell me how to change these payments so they will show as payments towards my sales tax liability. Thanks so much for your help
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Quickbooks just helps you do the accounting work -
so you need to know some basic accounting, and you also need to know something about running a business - if you are expecting ONE book to teach you all that, you’re dreaming and you are destined for failure.
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I use Microsoft Office Accounting Professional in my farm. Your article is nice to read. You make very nice review over the three.
Why you go for Quickbooks instead of the two when you decide to go for a software for your farm? How you come to know about it, by reading articles on it or by hearing from others?
Thanks.
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