| Tracking Income | | | | If your business grows in either size or |
| You track business income using the check | | | | complexity, you will eventually want to move up |
| register or account register. All you need to do is | | | | to another small business accounting |
| use a category that counts income. To do this, | | | | program-something that provides a richer set of |
| record a deposit in the usual way and then | | | | tools and features. |
| categorize the deposit as sales, revenue, or sales | | | | Fortunately, you have many good choices for |
| income. Note that each deposit transaction | | | | small business accounting software. The most |
| records a single sale. Note, too, that the Category | | | | popular program is QuickBooks, or its big brother, |
| field for each transaction records the category as | | | | QuickBooks Pro. The QuickBooks programs are |
| Sales. | | | | full-featured, small business accounting programs, |
| | | | which means they do just about everything that |
| Another problem with cash-basis accounting is | | | | a small business needs. Both are also quite easy |
| that you can't track those amounts for which you | | | | to use. If the QuickBooks programs have a |
| have invoiced customers but for which you | | | | weakness, it is that their ease-of-use also makes |
| haven't been paid. These amounts, commonly | | | | it easy to make accounting errors and to |
| called accounts receivables, can be very significant. | | | | erroneously change data. |
| A fundamental record-keeping task a small | | | | Another more powerful and more complicated |
| business should regularly undertake is to review | | | | program is Peachtree Complete Accounting. The |
| these accounts receivables and follow up on any | | | | Peachtree Complete Accounting program is |
| of them that are past due. | | | | probably the favorite of certified public |
| Tracking Expenses | | | | accountants simply because the program forces |
| To track expenses using Money, all you need to | | | | you to adhere to a more rigorous, methodical, |
| do is use an appropriate expense category when | | | | and safe level of financial record keeping. |
| you record an expense. Note that the Category | | | | Unfortunately, and this is really the flip side of its |
| fieldrecords each of these transactions as an | | | | robustness, the Peachtree Complete Accounting |
| expense. | | | | software is also more difficult to use. |
| As in the case with income transactions, the | | | | The decision to use one or the other of these |
| problem with using this cash-basis approach is that | | | | programs depends largely on the accounting skills |
| expenses get recorded only when you enter | | | | of the person using the package. If you do not |
| them in the register. This approach may work, | | | | have much accounting training, you would be |
| but it has shortcomings. For example, by | | | | better off with one of the QuickBooks programs. |
| recording bills and expenses only when you write | | | | If you have more accounting knowledge, and you |
| a check, you don't keep a record of the | | | | have the time to be trained, you would be happier |
| outstanding bills you owe your vendor. | | | | in the long run using Peachtree Complete |
| What should I do if I outgrow the Money | | | | Accounting. |
| program? | | | | |