Accounting in Linux ...?

[CADesign]

Background:
Around 6 weeks ago I decided to migrate from XP to Linux.
Ubuntu was an obvious choice for me since it is, IMO, a rather easy move and I feel comfortable using it.
I've found that I can do most of my business fine using Linux with two exceptions.
One is my CAD software (IntelliCAD) which, I am told, does have a version that works under Linux. Unfortunately, I had just purchased the Windows version and the company I purchased it from doesn't support or sell the Linux version. Not a real problem, I'll just purchase the Linux version next-go-round (in a couple of years).

The second exception is my accounting software.
Currently, I am using Quickbooks Pro 2007 under XP.
My research has indicated that QB just won't run under Linux, even using Wine which (I believe) emulates a windows environment in Linux).

Question:
Is anyone aware of a good accounting software for Linux?

My needs are fairly basic.
I am a sole-proprietor (no employees, no payroll)
I am a service oriented business (no inventory, no sales tax).
I do some estimating and definitely need invoices.
I do my own accounting and run everything through my Business Checking Account.
Tax Line Items are preferable but not absolutely necessary. (I don't need to export to tax software)

I did find GnuCash which will probably work but is not an easy transition from Quickbooks. (Major learning curve and no way to directly import)

Any suggestions, comments greatly appreciated!

Thanks,

Dave

[Evan]

Hi Dave,

You are correct, QuickBooks will not work with Linux. One option may be to try QuickBooks Online, but it will cost $9.95 per month. Not too bad considering the downloaded software usually costs more than $120.00, and many people upgrade each year. Plus you'd be able to access your company file from anywhere in the world.

There is a 30 day free trial for QuickBooks Online. Try to see if that even works. It may state that it doesn't work, but nothing states that it absolutely won't.

[CADesign]

Thanks Evan,

That's an option that hadn't crossed my mind.
The 30 day trial makes it a great option to at least try out.
I'm assuming that it's fairly similar to the standard version.

If I can get my CAD software as a Linux version then I'll have a great motivation to make the move with Quickbooks.

I don't know that you are familiar with Autodesk (AutoCAD products) but I've been tied to them over the last 16 years and although the product is industry standard, the company is very user unfriendly, IMO, and requires regular upgrades (at $4000 a pop) to be able to provide drawing exchange with upgraded clients.
I finally broke free from Autodesk when I found IntelliCAD which uses the same command line input, has the same bells and whistles and has virtually no learning curve when moving from ACAD.
IntelliCAD sells for around $400 per seat and will exchange drawing files with any version of ACAD so it's really a "no-brainer" for me to want to make the move.

MicroS*** is nearly the same, IMO, so a move to open source Linux is a refreshing move as well. There are many convincing reasons to use Linux but none so convincing as it's latest versions that are nearly plug & play and so easily customized or tailored to one's needs. I also like the security of a unix based OS. I know that I spend a lot on utilities, antivirus, firewalls, backup etc ... with XP) I'd rather spend that on a new business laptop or marketing if possible.

Opps ... guess I'm ranting on here ...

I appreciate the tip Evan, I'll investigate the online option for sure.

Thanks,

Dave

[Evan]

I cannot say it will positively work with Linux. But assuming you have all the right plug-ins, I do not see why it wouldn't work. Unfortunately, most of these developers figure users are using Windows. I'm pretty sure both QuickBooks and (I'd assume) Peachtree both have linux versions in their heavy-duty enterprise versions that are running on a corporate server. But that doesn't help you.

While most programs have a learning curve, they really all do the same thing. Even as an accountant myself, I cannot say I fully like QuickBooks. Sometimes I'll want to do something and will have to fiddle with an option. That's why I commonly just will create a journal entry to manually record what I needed.

My only other complete last-resort option would be to make an invoice template in MS Word and when you send a copy to a client, print out a hard copy for yourself. This would be your official record of it. If it's really a small business and your accounts receivable isn't an issue, I can't imagine this being an issue. But if customers make partial payments or there is any more complex "accounting" going on, I'm sure you'd appreciate a program much more than the paper method.

Let me know how you make out with QuickBooks Online. I've tested it myself online and do like the interface. It's very similar to the actual downloaded application, with some noticable differences. Then again, it IS a brower I'm creating the transactions in. :)

[CADesign]

Hi Evan,

Mine is certainly a small business, micro might be a more appropriate term but I do have one client that requires progressive invoicing. (Work for city Dept. of Pub Works)
QBPro, does this but it's also overkill for most of my very basic accounting needs.

Actually, the city now pays simply time and materials, where originally I had to work within the confines of a bid/ contract. They seemed to relax once I had my foot in the door. As long as I keep per job amounts under a certain limit they have been fine with time and materials (which is my preference anyway).

Besides the online QB option, I need to get to know this GnuCash program. I think it's a good software (the best I've found yet), just not as pretty as QB.


While most programs have a learning curve, they really all do the same thing.


I think this may well be the case here. I learned about the GnuCash program on one of the Linux forums that I go to and people are evidently using it to do their business accounting.

My best bet may be to take the time between now and the end of the year to learn the program so that I can close this years books out in QB and start the new year in the new program. That would, IMO, be far easier than complicating things by trying to transfer all of this years data.

BTW, I do, very much, appreciate your input. I'll keep you posted on what works best for my "micro" business.

Thanks,

Dave

[Evan]

Yes, you could certainly "clear out" your books at the year end. On January 1, your net income is automatically transferred to Retained Earnings. You may also have a balance in Opening Balance Equity and presumably your checking account. Assuming you have no debts or other assets, these should be equal. You could simply just do a reverse entry in QuickBooks -- zeroing out those books. And put the opposite entry into this other accounting software so your balances are all the same. So your cash will be (for example) $1,000 -- and Owner's Equity will be $1,000. Don't bother with Opening Balance Equity, that's merely a QuickBooks account and really shouldn't exist.

And if your accounting software is good, as QuickBooks (believe it or not) is, it'll warn you when creating a transaction against Owner's Equity. This is because it's unusal to post anything to it except by those who know what they're doing.

[billbenson]

Peachtree has a version that says it works on Linux.

[CADesign]

Thank you Billbenson,

I've never tried Peachtree, I think it was probably out of my price range when I considered my accounting software earlier. I'll look into it again, perhaps they have a product that "fills the bill". (and works under Linux) :cool:

Evan,

Your last post helps more than you will know. :)
Accounting is, by far, the most difficult of my tasks as a sole-proprietor even though my situation is very basic and is probably something that should be a rather simple task once established or set up properly.
I'm sure a basic accounting class would be a very beneficial investment on my part.

Thanks All,

Dave

[KristineS]

Dave,

I am by no means an accounting expert, but I did take basic accounting a few years ago and it was a great help. Even though I don't use what I learned much, it helped me understand how to keep track of money a lot better than I did before I took the class.

[Evan]

Peachtree is a decent application, but it's not as user-friendly as QuickBooks either. Great for product-based businesses over service because of the features it does have. It may have more than you need as well.

Enrolling in a basic accounting course could help. Everything, even in the most advanced accounting, always goes back to basic accounting 101. So it's never bad to know :)

[CADesign]

Hi KristineS,

I suspect it would help me as well.
With QB it's all pretty intuitive but I really don't have a good grasp on double-entry accounting, so if I could just sharpen up on that and be able to correctly fix an incorrect entry using the General Ledger it would be extremely helpful. Learning the correct terminology would sure make it easier to use a manual or help screen, as well.

Actually, there should be (and is, no doubt) a lot of helpful information on-line.

I just need to get into my research/ learning mode and get to work.
I do get slack times where this would be fairly easy to work into my routine(s).

Thanks,

Dave

[Evan]

You can't screw up QuickBooks with regards to two entries. You may apply it to the wrong account, in which case you can just edit the transaction. But when you create an invoice, you are in essence creating the following entry:

Debit Accounts Receivable $500
.....Credit Consulting Income $500

When you receive that payment, it's a debit to Undeposited Funds and credit to Accounts Receivable. For that deposit, it's a debit to Cash and credit to Undeposited Funds. You just don't see the entries, but they most certainly exist.

Debits and credits can take awhile to grasp, especially when you talk about a deposit being a debit to Cash. You, as a consumer, are familiar with it being a CREDIT to your account. In reality it's a debit.

The worse thing, it's the complete opposite for the bank. Your deposit is a liability for them, so your deposit ends up being debit Cash, credit Deposits Payable. And that check you just wrote to pay the mortgage ends up being debit Deposits Payable, credit Reserves (all of the money it has that just transfers from bank-to-bank in the ACH network).

It can be a headache!

[CADesign]

Thanks Evan,

... I think.

I'm smiling for sure, but if I wasn't totally confused before ...
... I'm on my way now. :D

The way I see it this Debit/ Credit thing is all a matter of perspective.
As a draftsman, I can understand perspective.

Dave

[Evan]

I guess I won't lecture you on the accounting equation then either :)

[billbenson]

personal version on Amazon was only $40 is for two users. That kind of surprised me as I thought it was a more expensive program. I'd do a little research, but it's probably worth checking out.