Considering QB

We switched three years ago.

I got tired of asking for financial reports/comparisons from the bookkeeper and being met with glares. Several days later I eventually got something remotely similar to what I wanted. Subtle suggestions to switch, over a five-year period, were met with even more steely glares, defiance, and even tears. Finally, I put my foot down.

We investigated a conversion service - mucho bucks (about $2k to convert Dac Easy files to QB). Ended up doing the conversion ourselves. Here's what we did:

1. Added minimal customer info to QB (just the name). We filled in the rest as necessary, like when we needed to send them an invoice, over the next few months.

1. Started each customer with an opening balance as shown by the Dac Easy (D-E) year-end report.

2. Essentially copied the Chart of Accounts from D-E, along with the D-E balances.

We (the bookkeeper and I) were able to get QB up and running, with current data, in one day.

Points to ponder:

A. You need to be intimately familiar with QB or have access to someone who is. You can't be learning the program during the conversion process. I strongly suggest a Learning Annex or community college course or, in the alternative, a QB expert who can mentor you. QB is a full-featured, powerful system that has more than two knobs.

B. There is much you can do before the cut-over date: Learn the system, of course. But you can build the COA, customer records, inventory items, etc., before the switch.

C. You may need to adjust your thinking if you are used to viewing everything in terms of debits/credits and off-setting transactions. D-E is a bookkeeping system; QB is much more user-friendly and doesn't conform to the quill-pen methods of 200 years ago (for example, QB lets you easily void an issued invoice, or any other transaction).

D. QB can prepare routine payroll reports to the feds and your state. It can't print a tax return, though! You'll still need to send stuff to your accountant. BUT: QB-savy accountants have a special program from Intuit that takes your QB backup file and does most of the work!

You simply burn a year-end QB backup to a CD and send it along (with the accountant's fee). Presently (and I'm not kidding here), a 50-100 page tax return comes back from your accountant ready for your signature. Your accountant will also return a sheet of transactions for you to enter (depreciation amounts, write-offs, fudge-factors, etc.) to make your records current.

When we converted, we elected to NOT enter any prior transactions. This worked amazingly well. You will still need to keep D-E available in case you need to re-print an invoice from last year or review some complicated series of events, but the instances of this were remarkably few. After the first year, we've not had to run the D-E program even once.

Upgrades: Yes, D-E charged a bunch for upgrades. QB does too, but QB is more clever. QB simply quits supporting versions more than 3 years old (including payroll data), so you have to buy a new version - or upgrade - about every two to three years.

Bottom line: Our bookkeeper, who had resisted the change-over forever, gave the ultimate approval: "We should have done this years ago!"

Many thanks for the time and effort for your advice. You have raised some salient points. I am basically a reseller and do not carry inventory. For this I set up products like "each' ; 'box'; 'ctn' etc and leave the description line blank, and fill it in when I do invoices. This has eliminated the purchase step.

Converting would then be a matter of moving D-E ending balances over to QB opening and then ensure they balance.

Based on what you said I would still need an accountant and this is what I would like to eliminate of possible.

I couldn't find a demo at intuit to look at the software, but I think I could handle it, having a strong PC/software background.

Thanks again for your great input. I have printed same for guidance.

Bill

If you switch to QB you will be able to say good-bye to your accountant, your lawyer and if you ever get sick, just swing the retail box around your head three times, scream like a chicken and you will be cured. I remember when I first switched over to QB. The next day I could speak a second language, play guitar and the chicks really started digging me.

Well I already play the guitar, keyboards, drums, and chicks dig me a lot so I guess I am ahead :-)

Bill

Then I for you the ability to leap tall buildings in a single bound. By the way I was just kidding about the saying good-bye to your accountant. After investing in QB you will not wake up the next moring with the years of education and training your accountant has. Also accountants (at least this one) does not simply move your information to the tax forms any more than an artist simply moves the paint from the tubes to the canvas.

Above, you have it from the horse's mouth.

Below, you have it from the horse's ass.

Allan Mart> If you switch to QB you will be able to say good-bye to your accountant,

Wow! Not often I get to LOL to three message in a row :o)

But hay William, No kidding . . . I learned Quickbooks in about a week buy just reading the users manual during my 2 hour lunch break every day. QB was my first Financial Software package so you should learn it faster than I did. Before that I used a pencel and paper ledgers for

20 years and still never needed an accountant. But I did take an accounting class in collage (35 years ago). _And_ I read a lot of IRS publications.

If your a one-man-band you could get rid of your accountant if you want to but you have to be certain that you understand everything he has ever done for you in the past. If you don't understand the what and why of what he does than you still need him.

- ____ _ | __\_\_o____/_|

Well at least I know now, for sure, that I have your ear.

I have many years in banking (commercial credit and audit) so accounting procedures etc is not new to me. As for learning the software that would not be too difficult either.

I got hooked up with an accountant because our sons both played for a junior football team so I thought it nice to give him some business. I know the IRS pubs can be a nightmare to read and sort through, but my business isnt that complicated that I could not do it myself. I got the impression from the QB specs that the program could or would complete the basic IRS forms. But no biggie if it doesnt.

Appreciate the input Bill

You've gotten some good advice and met the resident clowns. Allow me to add to that good advice.

Spend the extra $100 and get the Premier edition that comes closest to your business description or the Premier Accountant edition which covers the whole gamut. Get the CPA911 book "Running QuickBooks 200x Premier Editions" by Kathy Ivens (assuming she will write the 2006 version). The book that comes in the Premier box from Intuit sucks.

One piece of advice from her is, assuming an accrual basis, to put open individual transactions at the end of the year in both accounts payable and receivable instead of lump sums. Her books are easy reads. Oddly Intuit uses her to write the Standard and Pro in the box books but not the Premier book.

While QuickBooks don't actually prepare the Federal income tax forms, you can assign the tax form line numbers within the program. Then you install the proper year TurboTax for Business which can then import the QuickBooks' figures.

I guess every NG has them or at least one :-)

Advice noted with thanks

Bill

So you engaged a professional for the sake of team sprit. All I can say is Bulla Bulla.

I know the IRS

You know this isn't like my Louis Pasteur imitation, where if I get it wrong, no one will know the difference. The IRS is watching you very closely. Beware!

I got the impression from the QB

Cool. Don't maintain an "inventory" if you can avoid doing so.

Yep.

Bill,

You may not NEED an accountant, but you sure should USE one. Here's why:

1. You pay the accountant to prepare the tax forms. Whatever you pay him, it's far less than YOUR time is worth. We pay, for a regular "C" corporation, a bit over 0 for our annual returns. And this is paid to a CPA/Tax Attorney.

1. The accountant will spot areas where savings can be made. One of my associates got into a snit with the IRS and hired a tax attorney to sort it all out. He paid the attorney ,000. The attorney got the tax bill reduced from 0,000 to ,000 (I'm not kidding!). In the process of fooling with all the financials, the attorney discovered my friend was paying too much local property tax and got his annual LOCAL property tax bill reduced by OVER ,000 per year. My friend is way ahead. Because he hired somebody who knew more than he.

2. Most importantly (in my judgement), the preparer's signature at the bottom of the form is crucial. The IRS maintains a list of righteous preparers and if your preparer's name is on the form, the return is passed without inspection, requests for more information, audits, penalties, interest, or contract killings. Your signature *alone* at the bottom of the return generally yields cries of "Fresh Meat!" and "I made quota!" around the IRS office.

Fully understand and appreciated.....

Thanks again. Bill

Actually the IRS maintains a list of the questionable preparers and returns prepared by them are more likely to be subject to audit. On the other hand it is Santa Claus that keeps a list of those preparers that are nice.