Choose The Right Accounting Software

One of the more complicated aspects of running a business operation is the function of accounting. The selection of the correct software to use can make all the difference in the success of the business operation.  

For most small business operations there are two popular programs. These are QuickBooks and Sage (formerly known as Peachtree). Each has their respective advantages and disadvantages. This article helps the business owner in his selection process.

First of all, this decision process is geared towards those operations with revenues of less than $5,000,000 per year. This pretty much covers about 90% of all small businesses in the United States. If your business is processing more than $5,000,000 per year, then you should seek guidance from your CPA to determine the best software to use.

Next, are you in a job or high cost item resale operation? Examples include large project contractors such as site developers, apartment complex contractors, institutional contractors (construction of government buildings, hospitals, or military facilities). For high cost item resale, these include new car dealerships, RV dealerships, farm equipment dealers, small boatyards, etc. then you should use customized software related to your industry.  If any of these apply then go with the software recommended by your CPA or industry consultant.

For most business operations, you earn less than $5,000,000 per year and you are not a job or high cost item reseller. Then let’s move onto the next decision in the model. Who will operate the software? 

Sage is designed with accountants in mind. It is more complex to operate and assumes you have a core understanding of accounting. If your daily transactions will be entered by one or two individuals and these individuals have accounting backgrounds, I highly recommend Sage. The software is designed to operate along the lines of the traditional accounting processes. It tracks data based on the standard ledgers and allows the accountant to pull data in a formalized method. Furthermore, if your business will require an audit (most businesses do not have to complete an annual audit) then this software works well in meeting the compliance requirement for internal controls.

Now what is left is QuickBooks. This is a wonderful software designed for the non- accountant to operate. It is ideal for a multi point entry concept. You can teach just about anyone with some level of responsibility how to enter data related to their function in the organization. The software even has a retail sales program to augment the basic accounting package. For management, once they learn the basic reporting function, you can pull tremendous amounts of information to make decisions.

Both Sage and QuickBooks are ideal for the small business environment.  By using the decision model above, an owner should be able to select the best software to meet his or her needs. Act on Knowledge.

Value Investing

Do you want to learn how to get returns like this?

Then learn about Value Investing. Value investing in the simplest of terms means to buy low and sell high. Value investing is defined as a systematic process of buying high quality stock at an undervalued market price quantified by intrinsic value and justified via financial analysis; then selling the stock in a timely manner upon market price recovery.

There are four key principles used with value investing. Each is required. They are:

  1. Risk Reduction – Buy only high quality stocks;
  2. Intrinsic Value – The underlying assets and operations are of good quality and performance;
  3. Financial Analysis – Use core financial information, business ratios and key performance indicators to create a high level of confidence that recovery is just a matter of time;
  4. Patience – Allow time to work for the investor.

If you are interested in learning more, go to the Membership Program page under Value Investing section in the header above. 

Join the value investing club and learn about value investing and how you can easily acquire similar results with your investment fund. Upon joining, you’ll receive the book Value Investing with Business Ratios, a reference guide used with all the decision models you build. Each member goes through three distinct phases:

  1. Education – Introduction to value investing along with terminology used are explained. Key principles of value investing are covered via a series of lessons and tutorials.
  2. Development – Members are taught how pools of investments are developed by first learning about financial metrics and how to read financial statements. The member then uses existing models to grasp the core understanding of developing buy/sell triggers for high quality stocks.
  3. Sophistication – Most members reach this phase of understanding after about six months. Many members create their own pools of investments and share with others their knowledge. Members are introduced to more sophisticated types of investments and how to use them to reduce risk and improve, via leverage, overall returns for their value investment pools.

Each week, you receive an e-mail with a full update on the pools. Follow along as the Investment Fund grows. Start investing with confidence from what you learn. Create your own fund and over time, accumulate wealth. Joining entitles you to the following:

  • Lessons about value investing and the principles involved;
  • Free webinars from the author following up the lessons;
  • Charts, graphs, tutorials, templates and resources to use when you create your own pool;
  • Access to existing pools and their respective data models along with buy/sell triggers;
  • Follow along with the investment fund and its weekly updates;
  • White papers addressing financial principles and proper interpretation methods; AND
  • Some simple good advice.

Value Investment Club

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