Is Quickbooks For Me?

Hello All,

I work as a freelance developer in web technology and since I started last year I have been using Quicken for my accounting... and a few days ago I decided to see exactly how far I've come and the reporting is so screwed up.

So I'm doing a revamp of my business, actually getting incorporated and all that and I know this time around my account needs to be in shape.

Will Quickbooks work for me? I need to send invoices, manage customer payments, track sales of each service I provide, possibly time sheets. And the only other thing, I don't have any employees, it is just me so how would payments work? My personal checking account is used for all business transactions anyway, what would I do then?

Thanks for any advice.

Reply to
Sharif
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Can you be a little more specific? Quicken (and quickbooks) reporting is only as good as the user sets things up. If you did not set things up properly then your reports will not be meaningful.

Depending on your actual company tax entity you will either pay yourself a paycheck or take draws. Talk to your accountant to see how he/she wants you to handle payments to yourself.

The first thing you should do to set things up correctly is to get a business checking account and credit card. Stop using your personal accounts asap. That will simplify your QB setup and accounting.

Reply to
Laura

I also run a Web Design business. I use Quickbooks and it works fine. It does all of the things you listed. I strongly recommend you get business checking and credit accounts and keep everything seperate from your personal accounts. The IRS does not look fondly on comingling monies. If you incorporate, you'll have to keep them seperate. If you decide to use Quickbooks makes sure your accountant can read your data files.

Mike

Reply to
Michael

If you are incorporating then your company will have at least one employee requiring payroll, namely you.

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Reply to
Allan Martin

I'll bite: why must a corporation have ANY employees? Can't the Board of Director (not employees) hire a management company who, in turn, contracts all the work out to off-shore workers in Bangladesh?

Reply to
HeyBub

QuickBooks could be for you... .so could Quicken Home & Business. Both software programs are equipped to handle invoices, customer payments, sales (not sure about time sheets).

That "the reporting is so screwed up" is, as you suspected, due more to a need to 'revamp' your business practices and record keeping then to your choice of software.

You have bigger questions than just software.

You mention that you are "actually getting incorporated and all that" and then state that your "personal checking account is used for all business transactions".

If you incorporate, you will no longer be able to co-mingle business and personal funds. You will also need to issue paychecks - at least to yourself.

When researching the options for our business, my husband and I took a course at a local community college. Among other things, the course discussed the different tax structures for a business, as well as basic record keeping. The state partially funded the course as part of 'small business' services, and so the cost was minimal. The hours were suited to folks who are currently employed.

That course, and a preliminary meeting with an accountant, were among the most important steps we took in opening our business.

Reply to
hatesspam

How do you expect the owner to be paid? Can't take a draw, must take wages hence there is at least 1 employee of the corporation.

Reply to
Laura

Yes that can happen but making that assumption in this case would require my being on drugs at the time.

Reply to
Allan Martin

Uh, the corporation may have several million owners. They take their compensation in a form I like to call "dividends."

Reply to
HeyBub

Why?

Reply to
HeyBub

Got it. Thanks.

Reply to
Laura

Directors fees. Dividends. Stock appreciation. Loath to have W-2 income!

Reply to
Golden California Girls

Because you are choosing a CORPORATION as your form of business. You are limited in how you can withdraw money from a Corporation. A corporation is not as flexible as, say, a sole proprietorship.

Some of the basics for the different types of business structures can be found on the IRS website

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For a decision with as many tax and legal ramifications as the choice of a business structure, professional help is HIGHLY recommended.

Reply to
hatesspam

You've made the presumption that one wants to draw money from a corporation. Maybe not.

Concievably, a corporation could contract out its management chores and have no common-law employees at all.

Even IF the principal wanted to draw money from the corporation, it doesn't have to be as an employee. The IRS won't allow "excessive" salaries anyway, and one technique to get around this restriction is for the principal to form one or more sole propritorships and sell stuff to the corporation. The principal could personally own all the computers and lease them to the corporation; or he could own the building and rent the facilities.

Reply to
HeyBub

All of the above could happen. Or not...

I base my presumption that the OP wants to draw money from the corporation based on his statements in the original thread. His work is "as a freelance developer in web technology". He currently uses Quicken for his accounting and may want to switch to QuickBooks. He has a "need to send invoices, manage customer payments, track sales of each service I provide, possibly time sheets" and asks "the only other thing, I don't have any employees, it is just me so how would payments work? "

How anyone could look at that post and NOT presume the OP wants a living wage from the corporation is beyond me.... but, hey, theorycraft was never my thing.

I stand by my suggestion that the OP needs to be more informed about the ramifications of incorporation (or whatever tax structure he chooses). My advice to look into small business classes (that may even be funded by his state) and to have a preliminary meeting with an accountant was sound advice based on my own experience.

Reply to
L

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