[Question] What is the accounting software for me to use?

[Mark Atkinson]

Ok, so I would just like to know what the best solution for my immediate accounting woes are.

I own a copy of Paste Xpress Start-up, and I am currently running an advanced version of Quickbooks. My problem is that I want something simple that deals well with a partnership in the professional services industry.

From what I could see, Pastel Xpress Startup doesn't give the facility to do partner equity and drawings accounts? I can't afford to pay for Pastel Partner.

Has anybody found a simple solution that is free or really cheap?

I'm currently studying towards a CA (2nd year) so I do have accounting knowledge, but not enough to deal with all these complex programs.

Simple, free/cheap and effective is what I'm looking for. I don't need a ton of reports either. Income Statement and Balance sheet is all that's really required for a partnership. Also need to deal with partner accounts.

Suggestions?

[eitai2001]

Ok, so I would just like to know what the best solution for my immediate accounting woes are.

I own a copy of Paste Xpress Start-up, and I am currently running an advanced version of Quickbooks. My problem is that I want something simple that deals well with a partnership in the professional services industry.

From what I could see, Pastel Xpress Startup doesn't give the facility to do partner equity and drawings accounts? I can't afford to pay for Pastel Partner.

Has anybody found a simple solution that is free or really cheap?

I'm currently studying towards a CA (2nd year) so I do have accounting knowledge, but not enough to deal with all these complex programs.

Simple, free/cheap and effective is what I'm looking for. I don't need a ton of reports either. Income Statement and Balance sheet is all that's really required for a partnership. Also need to deal with partner accounts.

Suggestions?

As long as you can create a general ledger account for each partner equity account and each partner's drawings account, you shouldn't have an issue.

I'm not aware of any entry level type software that automatically does the splits ... it's all in the manual journal entries.

I used Fincon accounting, and that is a high end software, and aside from maybe a module add on ... equity's, drawings, etc were processed by manual journal entries.

If you want a strong scalable free accounting package, maybe look at Nola Pro ... but be warned, it is rather complex and I never took the time to get my head around it because it was bigger then what I needed at the time.

You could also look at Turbocash, I used that when I had a partnership ... but once again, all based on journal entries and custom created ledger accounts.

Perhaps give Pastel a call, speak to a consultant, tell them you have express and you would like to create multiple equity accounts.

I'm assuming you don't need each user to log in under their own username ... because then you would need Pastel Express to give you up to 3 users (users that can create invoices, etc ... this still would not do the equity split)

Goodluck for your degree, I'm almost complete with honours ... believe myself and your lecturers when they say study hard ... never put your own company above studying for your degree ... I made that mistake ... ONCE!!

[Mark Atkinson]

Hmmm... Great food for thought. Thanks!

Chances are I will stick to Quickbooks for the time being. It does allow for journal entries but it already has a function to transfer to partner equity/drawings accounts. The only problem with it is that it's US-based! Which is fine, until tax implications arise. Not being a VAT vendor, I'm not too concerned for now.

Just to be clear, and refresh my memory on partnership accounting, when is it that you distribute profits to partner equity accounts? At the end of the financial year? Can you do it every month?
The way I'm working at the moment is I'm just recording Partner drawings as they arise, and am planning just to split my net profit at the end of the financial year and distribute it to partner equity. I think that's correct?

I know that salaries go to partner equity accounts when they are declared. We do not use fixed salaries, though.

Meh... I'm confusing myself...

[eitai2001]

Hmmm... Great food for thought. Thanks!

Chances are I will stick to Quickbooks for the time being. It does allow for journal entries but it already has a function to transfer to partner equity/drawings accounts. The only problem with it is that it's US-based! Which is fine, until tax implications arise. Not being a VAT vendor, I'm not too concerned for now.

Just to be clear, and refresh my memory on partnership accounting, when is it that you distribute profits to partner equity accounts? At the end of the financial year? Can you do it every month?
The way I'm working at the moment is I'm just recording Partner drawings as they arise, and am planning just to split my net profit at the end of the financial year and distribute it to partner equity. I think that's correct?

I know that salaries go to partner equity accounts when they are declared. We do not use fixed salaries, though.

Meh... I'm confusing myself...

My step dad uses quickbooks with no issues ... remember, a basic accounting system won't calculate income tax because this is a complex calc, and you can adjust the percentages for VAT.

Sho, it's been years since I did accounting for a partnership ... but if I remember correctly, what you said is right. Debit drawings to the account as it happens, salaries get credited to the account and Net Profit gets credited to the account at year end ... the balance of the remaining amount is paid to the partner if it's a credit.

[sterne.law@gmail.com]

I am a staunch quickbooks supporter and there is a reason it is the top selling accounting package in numerous countries.
As to VAT, it does not matter what country wrote the software, you determine the VAT rates and when you set up items or charegs you then set the relevant VAT code. In our case 14% or 0%

You can do a jourrnal entry and then memorize it, which will automate it. I us ethis method for Debit orders and my payroll where relevant (i.e consistent salaries)

On distributing the profits - the tax perspective treats everything in financial periods. Some people prefer to do the distribution monthly while others do the yearly method. If there is interest on loan accounts and the distributions are different then monthly may be better. Because it does not effectively alter your bottom line or trading accounts it is probably neither here nor there (personal taxes may play a role though)

[Mark Atkinson]

You can do a jourrnal entry and then memorize it, which will automate it. I us ethis method for Debit orders and my payroll where relevant (i.e consistent salaries)

Cool! I didn't know about the memorize function. Just out of interest, for your miscellaneous expenses or once off purchases from a "vendor" do you actually set up a vendor account and enter bills? Or do you just pass a journal entry to bank & the relevant expense account?

[IanF]

Mark
I kept out of this as I didn't know what the extra requirements were for partnership accounting. The package I use is econoaccounting which has features i really like. The 2 features are importation of bank statements and autoallocation. So when you import a bank statement your bank charges are automatically posted with VAT going to the vat account.

[Dave A]

Chances are I will stick to Quickbooks for the time being. It does allow for journal entries but it already has a function to transfer to partner equity/drawings accounts. The only problem with it is that it's US-based!

You need the UK version to handle VAT easily. Until you're a VAT vendor it isn't an issue though.

As to VAT, it does not matter what country wrote the software, you determine the VAT rates and when you set up items or charegs you then set the relevant VAT code. In our case 14% or 0%

The problem with using GST based software is handling input VAT claims. You could work around it via line item entries of course, but that would be a PITA compared to software specifically written to manage a VAT regime.

[sterne.law@gmail.com]

If you are paying cash or cheque, which would make sense as a one off - use a cash purchases vendor. Put the company name under memo, for future reference so if you look back you know what or who it was

[BusFact]

I have become a bit of a fan of Omni Accounts www.omniaccounts.co.za.

SA software, so no issues with VAT. It caters nicely for it. You can also start out from as little as R500 for the package and then can add functionality as and when you need it. So the package grows with your company.

I tried Quickbooks for a while after getting irritated with Pastel, but could not for the life of me figure out a way to easily process settlement discounts. No way was I prepared to do 100+ credit notes each month. Both Pastel and Omni cater for that quite nicely.

[Elodie]

The solution I recommend you is not basic but a very performing accounting system. However, it is entirely free and open-source. The name is Tiolive and I think that it is a direct competitor of Quickbooks.