Information Update:
Since this article was written, Intuit has released a wider range of
QuickBooks products than those discussed here. Besides QuickBooks
Basic and QuickBooks Pro, there are now QuickBooks Premier and
QuickBooks Enterprise Solutions versions, as well as an online (Web
based) version of QuickBooks and even a few industry-specific
QuickBooks versions.
These QuickBooks variants offer a mix of features that is
complex and changes frequently. So, beyond the basic information in
this article--some of which is now outdated--please visit the
QuickBooks Web site, www.QuickBooks.com,
to see a feature comparison of currently available QuickBooks
versions.
Why Quicken...Why QuickBooks?
Quicken, QuickBooks, and their various "flavors"
(Quicken Deluxe, QuickBooks Pro, etc.) are general-purpose
accounting programs from Intuit
(800-4-INTUIT) that are enjoying growing popularity as farm
accounting systems. They're easy to learn and use, very flexible,
and offer features useful in a farm business, such as the ability to
identify income and expenses with specific farm enterprises, print a
Schedule F report, etc. They're also available for Microsoft
Windows, the Macintosh, and even MS-DOS, making them useable by
almost every farmer or rancher with a computer.
Don't be fooled by the low price tags...these programs offer
easy-to-use farm accounting power.
Support is just as important as features. Technical support is
available from Intuit. But for farm-specific questions you'll likely
find more support elsewhere. The programs' popularity is leading to
increased assistance from universities, software companies, CPAs,
and private consultants. Texas A&M, Oklahoma State University,
Utah State University, and others are among the many university or
extension organizations providing information or training in farm
accounting, based on Quicken or QuickBooks. Similar efforts are
underway in other countries outside the U.S. (Australia, Scotland,
South Africa, and elsewhere.) Then too, the growing number of
farm/ranch users of these products is creating an informal support
network of its own.
Support of another kind is brewing, as well. That's support by
agricultural software companies, in the form of interfaces
(connections to other programs) and add-ons to enhance how Quicken
and QuickBooks work for farm accounting.
-
The ManagePLUS add-on,
from Flagship Technologies, Inc., gives Quicken
or QuickBooks capabilities for recording physical quantities in
transactions, improved enterprise records handling, and farm
management reports with quantities, dollars, and per-unit
(per-acre, per-head, etc.) information.
-
FINPACK is a farm
business analysis package developed and maintained by the
University of Minnesota's Center for Farm Financial Management.
Interface software is now available to allow importing Quicken or
QuickBooks data directly into FINPACK.
-
More is on the way...various university and commercial concerns
are working at gaining automated access to Quicken and QuickBooks
records, for in field mapping and GIS applications, industry-wide
enterprise analysis, and more.
So Many Flavors...
Understand that, despite the different names, the core accounting
capabilities of the various Quicken versions (Quicken, Quicken
Deluxe, etc.) is that same. That's also true of QuickBooks and
QuickBooks Pro.
So what are the differences? In Quicken, the main difference
between the various Quicken packages is the number of additional
software applications included--things like home inventory, tax
planning, etc. The primary difference between QuickBooks and its Pro
version is that Pro includes features for time recording and
billing--something your CPA or attorney might use for keeping track
of billable time the spend working of each client's projects.
Another consideration is that some versions are available on
either CD or diskette. If your computer has a CD drive, by all means
opt for the CD versions of Quicken or QuickBooks. Installing
software from a CD is usually quicker, requires less storage space
for the master disk, and is less error prone. And in cases where the
CD version costs a few dollars more, that's usually because it
contains more "goodies" than Intuit could fit on the
diskettes. In the case of QuickBooks and QuickBooks Pro, for
example, the CD version comes with a searchable business library
containing articles and worksheets on everything from financing and
business law, to employee management.
Quicken or QuickBooks?
Deciding between Quicken and QuickBooks isn't easy. The choice
that's right for you depends on a lot of factors.
What is your accounting background/understanding? If you
want double-entry accounting capability, go with QuickBooks. If you
want simplicity and single-entry or checkbook accounting try
Quicken. However, realize that QuickBooks' double-entry features are
"hidden" well enough that many farmers use it for
single-entry accounting without even considering the difference.
What are your accounting goals? Viewed from the
standpoint of most farmers, the two packages don't really differ
much in what they offer. We say this because, though the programs'
features differ considerably, the features you're actually likely to
use in a farm business are substantially the same in either
package.
For example, though QuickBooks lets you keep a complete
double-entry set of books, most farmers don't use the double-entry
features. They end up using QuickBooks for single-entry
bookkeeping--about the same way they would have used Quicken.
Having said all this, here are some of the differences in the two
packages as they relate to farm accounting, and various goals you
may have:
| Quicken |
QuickBooks |
| Easier to learn and simpler to use (fewer options) |
More features and options (but more difficult to
learn) |
| Fine for simple checkbook-based income and expense
records |
Allows either single- or double-entry bookkeeping
method |
| Some users complain of not having enough space for
transaction detail |
Allows more detail in transactions (larger Memo
field, etc.) |
| Plenty of reporting capability for most users |
More extensive reporting capabilities, including
more
"standard" accounting reports. Pro version can export
some data / reports to Microsoft Excel spreadsheets |
| Allows using Classes (enterprise codes) to
associate income/expenses with specific enterprises |
Provides for multi-level (parent and child)
Classes, for greater enterprise flexibility |
| Has features for tracking stocks and other
investments |
No investment tracking features |
| No inventory system |
Has an inventory system...but it's seldom useful
for farm inventories (grain, livestock, etc.)--few farmers use it |
| No payroll system |
Complete, easy-to-use payroll system, but does not
print Form 943, needed by some agricultural employers. |
| Limited support for invoicing, receivables, etc. |
Many professional small-business features:
invoicing, customer statements, accounts receivable, etc. |
| Single-user versions only. |
Multi-user (up to 5 simultaneous users) versions
available |
| No programming interface |
Programming interface available since QuickBooks
2002, will encourage development of 3rd-party add-ons for
QuickBooks |
| Street Price: about $30 - $60, depending on
version |
Street Price: $150 - $250 for Basic or Pro
versions, depending on version. (Other higher-end versions also
available for more $$) |
Do you hire employees? QuickBooks comes with a complete
payroll system, and can print the required quarterly reports, etc.
Do you have a sideline business? Quicken began (and
remains to this day) software primarily designed for personal
financial management--keeping track of income and expenses,
balancing a checkbook, monitoring investments, etc. QuickBooks, on
the other hand, was designed to streamline the paper flow typical of
many small businesses. If you do much invoicing, or need to keep
track of accounts payable and receivable, or collect and report
sales tax, or send customer statements, then QuickBooks is
definitely the better choice.
Where will you get support? Especially if you're new to
using a computer for record keeping, your choice may be influenced
by where and from whom you can get your questions answered. If your
computer-expert neighbor uses QuickBooks, it might be your best bet.
Or if the local Young Farmers group holds Quicken classes during the
winter, they might be your best source of support.
Is there an "upgrade path"? Suppose you think
you'd prefer QuickBooks, but maybe you are a novice computer user or
you just aren't comfortable with the idea of learning it. A good
approach is to start with Quicken instead. Many concepts in the two
programs are similar, so you won't be wasting time by learning
Quicken first. Nor will you be wasting much money, given Quicken's
low cost.
Later, if you decide you really do need QuickBooks, you can
upgrade easily. QuickBooks can directly import your Quicken
records--so none of your effort will be wasted. And you'll already
have a head start at learning QuickBooks because of your experience
with Quicken.
Note: You can't go the other way; that is, QuickBooks records cannot
be imported into Quicken.
QuickBooks Basic or QuickBooks Pro?
If you've decided you need QuickBooks, should you consider
QuickBooks Pro? At one time we would have said "No" in
most cases. But recently, the Pro versions have added numerous
useful features beyond what you'll find in QuickBooks Basic. For
some users this makes QuickBooks Pro a better choice.
QuickBooks Pro adds the capabilities for (1) estimating, such as
estimating construction costs to make a bid on a construction
project, (2) time tracking, for businesses that bill on the basis of
time, such as an attorney or CPA, (3) advanced job costing, to
compare estimated costs with actual costs of a job, etc., (4)
exporting data to a Microsoft Excel spreadsheet for further
analysis, and (5) several other features.
QuickBooks Pro normally costs $80 to $100 more than QuickBooks
Basic, so carefully consider whether the Pro version's added
features are worth it to you. (You can find a current feature
comparison at www.QuickBooks.com).
Note that if you buy the Basic version now, you can painlessly
upgrade (with no changes in your records or data) to the Pro version
at any later date for less than the full price of the Pro version.
Finally, understand that the "Pro" in QuickBooks Pro
doesn't mean it provides a more powerful accounting system. On the
contrary, the core accounting features of QuickBooks Basic and
QuickBooks Pro are identical. All that's different in the Pro
version is the addition of more "bells and whistles"--but
very worthwhile "bells and whistles" if they provide
features you'll actually use.
For More Information:
For detailed information on Quicken and QuickBooks features,
versions, and pricing, visit Intuit's
Web site.
This article may be copied for distribution free of charge
for non-commercial educational uses only, so long as these requirements
are met: (1) The article must be distributed in its entirety and not in
condensed or abridged form, unless you have express written permission from
Flagship Technologies, Inc. (2) The copyright notice which appears at the end of
this article must be included on every copy of the article which you
distribute. (3) No fee of any kind may ever be charged for distributed
copies of this article or any larger volume of which this article is a part. (4)
This article may not be distributed in machine-readable form (for
example, as a computer-readable file or over a network or Internet connection)
without express written permission from Flagship Technologies, Inc.
These requirements basically mean you can copy this
article for distribution as printed material for educational purposes, so long
as you apply our copyright notice to each copy and never charge a fee for them.
If you need to reference this article on an Internet site, simply provide a link
to this page, because you may not copy content from this article to make
available on any other Internet site. Except as described above, all other uses
of this article require express written permission from Flagship Technologies,
Inc.
