[Leaplist] Accouting software -- 6 things to know about Linux (and why to consider Apple)

[ray]

William Warren wrote:
> true.  I just need some software that will keep track of the numbers. 
> I'm not worried about GAAP.  since i am doing webhosting now I need 
> something that can track monthly, quarterly, semi-annual, annual 
> contracts and let me know when they need to be invoiced..etc etc.  i'm 
> not going for gov't contracts(too much work) i just need something to 
> keep track of my payables and receivables with automated billing..:)
>
> Fred Moore wrote:
>> On Thursday 16 November 2006 12:18 am, William Warren wrote:
>>> any suggestions for accounting software?  This is for a one person LLC.
>>
>> I think only you can answer what specific package does what you 
>> want.  But let me explain my reasoning.  As a previous owner of a 
>> couple of corps and now a "one person LLC" just as you lets looks at 
>> this from a different perspective.
>>
>> When we talk about GAAP accountants tend to put things in that bucket 
>> that are the opposite of what you and I are most likely to need the 
>> accounting software for.  We want it to be a tool.  They want it to 
>> be a tracking mechanism to make their life easy.
>> I think of accounting as a tool to be used by me to gage the health 
>> of my company.  I expect this to gage the health correctly at any 
>> specific time.  I also expect any errors to be corrected instantly.   
>> Let me give you an example.  lets say that erroneously you 
>> accidentally enter 10k of income as an expense.  Under GAAP you are 
>> not allowed to correct this transaction.  You MUST enter another 
>> transaction to reverse the transaction in error.   Under GAAP you 
>> must never correct only do additional work to resolve simple 
>> mistakes.  (sorry but I will not hire an account to do the additional 
>> work, and my time needs to be spent building my company not keeping 
>> an accounting system operating).  Also under GAAP you must 
>> effectively "close the books" at the end of each period (more work).  
>> Which in most cases is the end of each month.  Under GAAP you can not 
>> make a correction in the period the mistake was made once a period is 
>> closed.  your month could suck big time on paper but be really good 
>> in reality.
>> Most likely you just like I look at things that effect your bottom 
>> line daily.  Or you need information in case you are ever audited.
>> So as a small example.. on June 29th you make a huge mistake putting 
>> 10k in assets when it was in fact debt.  The books get closed on June 
>> 30th.  You look at the report on July 1st and immediately notice that 
>> assets are incorrect.  Under GAAP you can enter a transaction to 
>> reverse it in July but you can never correct the June report. 
>> To me it was more important to be accurate at all times then to 
>> comply with GAAP.   GAAP does not accept that recording a change to a 
>> transaction is the same as recording another transaction (dumb, dumb, 
>> dumb)  Almost all accounting package record each and every change as 
>> well as new transactions. 
>> Anyway enough about GAAP.  I contend unless like you Bryan said you 
>> do a lot of government contracts.  Then it may be a requirement, but 
>> most likely only on government contracts that are cost plus.  Which I 
>> just won't do.  check out some of the links from.
>> http://specialreports.linux.com/
>>
>> if you follow the links there is a lot of information.
>> I mistakenly made a Quickbooks decision years ago.  The decision was 
>> mostly based on which packages incorporated "Payroll"  I found that 
>> with a spread sheet calculate payroll in the same amount of time it 
>> took me to enter the information into the accounting system.   So I 
>> would suggest you eliminate this from your search.
>>
>> Decide what you want for an interface, web, GUI, db based,  etc.. 
>> this will help you.  Bottom line most accounting packages will run a 
>> small company.  Most accountants will tell  you "you need a GAAP" 
>> type of software.  But think about it.  This keeps their problems in 
>> small packages (month, month, month, year) perspective.  Your 
>> requirements are to have sufficient detail to 1) file your taxes, and 
>> 2) defend yourself in case of an audit. 
>> In reality a "one person LLC" could be run from a ledger sheet almost 
>> a quickly as using an account package.   Yea you don't get the pretty 
>> balance sheet reports but quite frankly I don't care I can read and 
>> understand.  I don't need to be able to generate reports that other 
>> people can understand.
>> While I know this is not so much linux related.. many of us make our 
>> living on linux and we need to track profit and loss..
>> as another hint and I have been there..  make a change in accounting 
>> systems at the 1st of a month.  BTW the IRS does not require you to 
>> use any accounting package.  They only require you to be able to show 
>> what you did when and if they ever audit you. hope this helps... Fred
>>
>>
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>>
>
Quasar, GNUcash, both come to mind for that level of basic accounting 
and billing.  GNUCash is Quicken for linux in a nut shell, with Quasar 
is a full blown small to mid size business accounting software.  both 
are free, both run in linux, Quasar even runs in windows.

-- 
Raymond L. Brunkow
5th Degree Black Belt
Chief Instructor & Owner
Sun State Martial Arts
407-786-2525
http://www.SunStateMartialArts.us
http://www.ssma.myffi.biz