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

[Fred Moore]

On Thursday 16 November 2006 7:29 am, 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..:)

Ah that I did not know, now that I know check out
http://freshmeat.net/projects/citrusdb/
simple to install and configure.. Fred

>
> 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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