New business, learning accounting - software or database

[danj]

I recently started my first business out of my home and therefore am learning accounting. I did some talking around and have researched a lot of software, online services, and a bit on databases as I learn. I was given a textbook that teaches basic accounting while teaching QuickBooks, which has been helpful. But, I read the reviews of the Mac version of QB as well as the online version and decided to look elsewhere. So, I signed up for Wave Accounting online. But I think I need to find something else. I'll detail my needs and what I know as best I can in hopes of some solid advice.

I run a tech and business consulting company. I'll subcontract for a large company starting next week as well as have done some repairs. In some instances I have to purchase what is inventory to pass along to a customer. For instance, two projects ago the customer had a bad hard drive. I ordered the drive (inventory) and passed that purchase price along to the customer. I also billed her for my time at an hourly rate. I have a few hourly rates depending on the type of project and the type of customer (business rate vs. personal rate, etc). I'll also have some fixed project costs, not tied to hours worked. I will keep a small inventory on-hand (flash drives, etc), have a fair number of asset purchases (software, hardware, etc), and later plan to have rent, insurance, etc. I do not plan to have employees for at least a few years. I have to be able to invoice through whatever I use. I also need to keep additional notes about specific projects.

For instance, if Suzy brings me her laptop to have a new hard drive installed and imaged, I'd like to collect the make, model number, serial number, processor, and RAM. As I go through a repair, I note anything odd or unique that I also need access to. For instance, if I tell Suzy her antivirus expired, I'd record that. I need quick access to that for the next time she calls. If, when Suzy calls with a virus, I could quickly look her up, find all my past invoices, all my notes, all information like serial number, and realize I told her to update her AV software. If I could have one place for all this data, I'd be stoked.

I think that gives a decent overview of the features I plan to need in the coming years. Which leads me to specific systems.

I've used Wave for a few projects now including a couple deposits, start-up capital, a few purchases, etc. Its invoicing seems fine. But, there is no simple inventory mechanism, which is very annoying. I like the idea of an online product very much as I can access my accounts from my phone or another laptop. I'm not 100% sold on having to have online access though and local software usually runs faster. Wave is free and that's a huge plus right now. I would not subscribe to anything much over $10/ month at this point unless it was certain to fit all my needs AND have the ability to export all my data at a later date.

So, does there exist a system that would fit all my needs? I could build out (probably starting from an existing template) a double-entry accounting spreadsheet, but I'd have to manually account for invoices and bank data plus I'd be pretty much out of luck on a simple way to manage project notes, right? What about a database? Does File Maker Pro or Access have the ability to do all that I want? Having worked with them some, it seems to me they would outside of still having to find a way to sync bank/credit card data.

Thanks for any advice or tips. It's entirely possible I'm missing something.

 

[danj]

oh, and depreciation

I also need something that helps me handle depreciation, making me doubt the simplicity of setting up a database. It seems the Wave Accounting method of tracking depreciating assets is convoluted, but maybe that's just how it is tracking depreciation?

 

[danj]

Wow, no responses at all? I chose to go with Wave Accounting for now. It's not 100% ideal and lacks quotes, depreciation, and a couple other niceties, but works for me so far.

 

[Dalkeith]

Dan - I just registered to answer your question.

Sorry although I can't answer your question on whether there is an existing system (there almost definitely is) I can give you background on whether File Maker Pro or Access can do the same thing.

Yes they will be able to and they can be extremely good if you know what you are doing. In addition you can get a massive competitive advantage by designinig your own software. Unfortunately it will typically take at least a year to get up to speed with database design.

If your beginning it might be worth buying in a system and trying in your spare time to make something that will do the job better. That's how I started designing my own systems.

Typically calculating things like depreciation is very easy to do. Or at least as easy as calculating in Excel. In fact the syntax of the functions used is likely to be the same between Excel and Access - the difference will be in where and how you use that syntax.

 

[danj]

Thanks very much for responding, especially for registering just to do so.

I'm moderately familiar with access as I set up an inventory list at my previous job including who had what devices, cost, accounts billed, program they were with, warranty end dates, etc. I also created forms and queries to enter data and run reports. I'm fairly competent and may do just as you suggest and start building one out that would better fit my needs.

I'm using Wave Accounting online right now and it's very nice. Not perfect and missing some pieces that would be nice such as quotes, but quite simple and interfaces relatively well with my bank. I like that I can access it anywhere pretty much any time.

Maybe I'll get my hands on Access or FMP sometime and start building that out.

Thanks again,
Dan J.

 

[Jessy Thames]

HI Danj

This would also be a late suggestion, but seems to help you utmost I suppose. As you have mentioned with depreciation handling and many other, adding that you aren't quite familiar with accounting, you can check with the software that lets down your complexities.

I haven't checked with wave accounting. As of now, I have been handling my accounting and related logical information with Handdy Jotbook. It seems to be pretty good and you can get with the access in both your MAC and Windows platform for free. You can check this out for amending results.

 

[Inger Lilja]

Sorry for jumping into this thread a little late, but I just want to add that - if I understand you correctly, and I think I do - E-conomic, which is an online accounting solution, has the functionality you are looking for in terms of depreciation, creating quotes, exporting/importing data and project management. As for recording notes (as with your Suzy case), this is also possible as you can create and set different note types on customers, suppliers or products.

If you are happy using your free solution, I totally understand. However, if at some point you do decide to move to a subscription-based solution, I would be happy if you gave E-conomic a try. There's a free trial you can play around with to see if it covers your needs.

I work at E-conomic and I'm here to help, if you're interested.