Easy Bookkeeping System

[Jiggers]

I have clients that bring me 12 bank statements to prepare their Schedule C/F return. I am looking for an easy bookkeeping system that I can enter the deposits and checks with distributions to the proper categories. I usually don't post from the check register as many small town businesses and farmers don't use!

I have software for my monthly clients, but I am looking for something that is easier to navigate. One that doesn't require closing one month, moving to the next month, and then back again, depending on when the checks clear.

And then the final product just needs to be a detailed general ledger from which I can prepare the tax return.

I also want to give a copy to the client, as documentation for the return, as they should be ultimately responsible for what category I post the deposit/check based on the detail on the deposit slip/check.

Any ideas?

[Bees Knees]

I use Peachtree. But my guess is, it is going to be as complex as your software.

Have you thought of creating a Spreadsheet through Excel? If you don’t need a balance sheet, why not just do an Excel Spreadsheet where each category is a separate column. Make it just like a check register with a column for date, check number, description, withdrawals, deposits, balance, and then a separate column for each category of your withdrawal column.

Really, that is all that is needed for a simple sole proprietor client.

[barbara]

try Quicken

I use Basic Quicken. It is a check register and you can assign categories to each item. You can key in deposits, checks, ATM, and EFT checks and deposits. There are many different kind of reports you can run. I like the itemized categories. All the checks and amount are listed with totals. I use it for clients who are SE, farmers, partnerships, and ME. Hope this helps.

[Peachie]

I use...

the system suggested by Bees for my small business, Excel. It works great for me and I balance it each month to my bank statement categorizing by whatever the expense. I find this easy and I am able to itemize each expense, which I prefer. When year end comes, I am ready to do my taxes. I can do different charts to give me an overview of my business, etc. By the way, I am not great at Excel but I am able to do a P/L that will be quite acceptable to the IRS and any bank, if I needed it.

Hope this helps.

Peachie

[OldJack]

Peachie, how do you have your sheet(s) setup to summarize expenses by type?

[Peachie]

Hi Jack,

I hope I understand what you are asking.

I have my months set up across the top, and the expenses down the side in alpha order. I.e., Cell phone, depreciable assets, education, tax software, etc. Everything is done by the month paid or deposited, as I am cash based. There should be no reason that my checkbook doesn't balance each month. Also, on the side, I have a column that says EOM bank statement totals that I keep since I don't get my monthly statements mailed to me. I just print them out and attach to my accumulating spreadsheet.

Is this what you wanted to know? If not, clarify and I will oblige.

Peachie

[TaxBird]

SubTotal Function

Peachie, how do you have your sheet(s) setup to summarize expenses by type?

[Jumping In]

The Subtotal Function (Feature? it's under 'Data' ) is a nifty way to get jumbled data totaled quickly. It allows you to subtotal data by any criteria. No too complicated either - Highlight your data set. Go to Data/Subtotals - You'll get a message - just click 'Ok' then select your subtotal criteria (third pull-down box down click the columns to which you want subtotals added), make sure summary is checked (if you want a grand total), and go.

For example, you could add a column called "Category' to your Check Register and as long as your naming conventions used therein are consistent using the subtotal feature will subtotal everything by that column/the column you select. And it will give you a grand total at the bottom.

This is kinda a quick & dirty on it but I'd be glad to explain further if anyone is interested.

[RLymanC]

Bookkeeping

I was browsing Staples the other day,,,,,saw "Quicken Home & Business" software for $89.00.....Just a thought.

Also agree with Bees,,,,,Excel can be set up.

[August @ ADG Financial]

Easy Software for Bookkeeping

We use it in the office.

http://www.domeproductsonline.com/default.html?lmd=38930.651215

[JohnH]

Excel is great

If you understand how to work with data in Excel, it makes a great data base manager. You can simply use a column for "Account Number" or "Account Name" and then sub-total on that column as mentioned above. You can also click the "collapse" feature on the left side of the spreadsheet to display & print the sub-totals only for summarization purposes.

It's also handy to set up a column entitled "Month Cleared" and enter the number corresponding to the month the check cleared the bank. By running a sub-total report on that column, you can tie the amounts posted back to the actual total of checks which cleared each month in order to proof your entries. Use another worksheet to keep a running columnar proof of cash, and it's fairly easy to reconcile the transactions to the bank statements at year-end. A small client can be maintained in a single spreadsheet with about 4-5 worksheets inside.

Functionally it's nice, because you can tell Excel to remember previous entries, so once a payee or notation is entered, the next time you begin typing an entry the program will offer guesses at what you're entering. Saves a lot of typing when you have numerous duplcate tranasactions.

Using an Excel spreadsheet as a data base has one big drawback. If you have a column heading which is blank and you run sub-totals without highlighting all the data, the spreadsheet will sort everything to the left or right of that blank heading, but not on the oposite side. This will cause your data do become jumbled. I've never been able to figure out how to overcome that problem. If any Excel users know the solution, I'd like to hear it.

[Peachie]

Bird and John

I like your suggestions and will try to incorporate them in what I do. The subs would be nice to have. Although, my monthly totals seem to work just fine. I am always looking for ways to know more about Excel and how to shortcut all of the data. Your suggestions certainly seem doable to me with a zero learning curve. Thanks.

Peachie

[outwest]

When all you have is a hammer..

everything looks like a nail.

Much as I love Excel (Including regularly using all the tricks mentioned above), there are times for the proper tool.

I would offer two proper tools:

Quickbooks simple start edition. It's just "Money In and Money Out", cheap and can grow if needed.

Second option liked by many is Medlin accounting. Also cheap, more accounting feel, also has a payroll module many like.

[JohnH]

QuickBooks also good

Yes, QuickBooks and QB SImple Start are also good. I use QB with most of mya ccounting clients and have been a QB advisor for years. But I encounter After-the-Fact writeup situations in which even that is overkill. In those cases, I can move much faster in Excel.

For example, write-up clients who don't do a good job of entering checks in their checkbook or have very sloppy handwriting. We post the Excel spreadsheet with check#, amount, and month cleared directly from the bank statement. This gives us the security of knowing we've properly identified what actually happened through the bank. Then we go back & enter payees, dates, etc that we can identify from the check registers & print a list of unidentified transactions for the client to fill in & give back to us. The flexibility of Excel enables me to group & regroup by amount, date, etc before producing the list for the client. Since I'm working backwards, I've never been able to do that efficiently in QB or any other similar package.

[Peachie]

Yes, but

I have used Quickbooks before Outwest, it's more than I need. I like the flexibility and simplicity of Excel. I think with the other suggestions offered today, it will more than meet my business needs for tax purposes. When I expand my business, I will consider the two suggestions you offer. Thanks.

Peachie

[outwest]

Just a couple of observations..

and as they say, your mileage may vary. Doing it both ways many times, this is how I came down.

I rarely found anything I can enter a list of checks in and classify any faster than QB check register. Say we have 40 - 65 checks, 5-10 deposits, the first month takes less than a hour (gotta quickadd those names). The rest of the months less than 30 minutes including full reconcile. For the reasons John mentioned I just go from the bank statement for each month.

Missing names: use a payee of "Unknown" then you can print a trans list. Same with unknown accounts.

Okay, here's one place I do use excel, sometimes I export these transaction reports to resort and regroup. But it's so easy, one click of the export button and excel is open with that list loaded in and a way I go if needed.

Even though QB has a lot of features, just forget the extras. Just go to the check register, pound in the checks and git 'er done.

Just an aside, I suspect you have seen what I see: good books tend to go with successful businesses. I've decided that my trying to cobble together a summary for taxes, undermines a point that current books give you decision making power, prediction of the future, and a fort around your deductions. If I show I value proper accounting, at least I am consistent in my argument that they need to improve their proceedures. It's part of what makes them businesspeople.

Anyway, as I said at the start: Just my opinion, your mileage may vary...