Review by Dave Millman

We used QuickBooks through 2003 at my previous company. It was a clean and simple way to keep detailed, accurate books for our business, which grew to the $2 Million level. I ordered the 2010 version for a new organization, and checked it out to make sure that Intuit had not somehow ruined it in the last few years.

No worries. QuickBooks is better than ever. It has struck that unique balance between ease-of-use and raw power that many software packages attempt but most fail to achieve. Using QuickBooks, you can enter your transactions (checks, deposits) as if you were just managing your checkbook, while the program keeps full double-entry accounting records behind the scenes. You get simple entry, your accountant and the tax man get clean balance sheets and cash flows.

Some caveats:nn1. The biggest complaint that the pros have about Quickbooks is that it is possible to delete a transaction completely. That is, if you make a mistake, you can delete the transaction and it is gone forever. In the world of professional accountants, this is a bad thing, but in the real world of running profitable small businesses, I believe it is acceptable.

2. If you want to keep clean, complete books, you need to set up a proper chart of accounts, and you need to enter transactions properly. This is quite simple, but not 100% transparent for a raw beginner with no bookkeeping background. My advice: Get an accountant with QuickBooks experience to set up QuickBooks for your business, and to give you 1-2 hours of training. This small investment will pay for itself many times over. Do not let the accountant convince you that QuickBooks won’t work for some reason. QuickBooks is by far the most widely used bookkeeping program in the world, and it will work in virtually every case.

3. I believe that the best way to use QuickBooks is like this: Designate one person as the Entry person. This is usually the bookkeeper or office manager. Their job is to cut checks, enter transactions, and prepare reports. Designate another person as the Check Signer (usually the Boss/Owner). Their job is to review reports and sign checks. Never, never, never allow the person who cuts checks to sign them, not even small checks. This will help eliminate the vast majority of fraud opportunities.

4. Be sure to choose the correct version of QuickBooks. Some versions allow multiple simultaneous users, others include payroll, etc.

Recommendation: Five stars, highly recommended for small businesses.