QuickBooks Vs. Peachtree

Something I truly enjoy is questions that I get from my readers.  A short time ago I had a reader mention that they would like to see a comparison between QuickBooks and Peachtree.  Since I do work with both and I am working with both on the expert level, I thought perhaps I could make the comparison between the two.

As a professional accountant who also works in Information Systems, I have a slightly different point of view about what accounting software should do and how it should work.  I do however take into account what my clients like and issues we run into.  Much of that become topics for articles I write.

If software or accounting automation were to function ideally, whenever you made a sale or provided a service, the appropriate entry would be made automatically and it would update your books. Well, you can get part of that in a retail business, even with small business software like the QuickBooks POS terminal, but it still won’t do your depreciation, purchase of fixed assets, bill payments, etc. etc. automatically, even if you paid for and used every service you can subscribe for through Intuit over the internet. For many other businesses you will have to make entries for your transactions manually.  Sorry, but there really is not an automated way to get the information

So what should we be looking for? What should we expect out of a software program?  Something that cuts down on accountant or book-keeper time. Now, what exactly does that mean? Things that a small business will primarily need a book-keeper or accountant for are:

1. Accounting for prepayments

2. Payroll accounting and returns

3. Depreciation for GAAP and Tax purposes

4. Minimizing tax legally

5. Useful, sensible reporting

Both packages meet these goals, but which is better?  Well, both have their merits and shortfalls, here is a brief look at the good and bad for each.

QuickBooks – The Good

In my opinion, QuickBooks is probably the more comprehensive of the two packages.  It provides relatively efficient functionality, with a standard interface, customizable reporting, and it won’t cost you an arm and a leg. Feature-wise, it probably contains more than Peachtree; it will do the basic accounting, invoicing, payroll subscriptions, credit card transactions, GL, AR and AP, prepaid, customer statements, financial reporting, etc.  QuickBooks ALSO has some concept of drill down functionality, which can be relatively insightful at the click of a button.

Another area that QuickBooks has a big plus in its wide market area and availability of support. It is relatively easy to find QuickBooks consultants (certified or not). The support network is out there, and their own web site can guide you on where and how to find support. Plus, QuickBooks is the software of choice for many Universities, making most accounting graduates QuickBooks literate, if not experts.
In addition to the friendly interface, QuickBooks is relatively self explanatory. The titles in the menus, the screens, the interface, the ease of use, all makes it a very efficient piece of software, especially if you’re a computer literate accountant. Even if you’re not, the learning curve is not too high.

QuickBooks – The Bad

From my position, I really don’t have much bad to say about QuickBooks. I’ve been using it for several years, and functionality wise, there’s really not much wrong with it (in comparison with other accounting / bookkeeping software in the market). The only possible drawback is that its ultra feature richness may make it confusing for the not so computer literate user.

Technically, QuickBooks has one pitfall. From year to year, newer versions come out, and compatibility has been an issue in the past. If you upgrade, you have to convert data, and although it’s not that tedious with the new version, it would be much simpler if Intuit simply made QuickBooks backward compatible, which it probably doesn’t for reasons of profitability.

Peachtree – The Good

Peachtree is a fantastic piece of software.  The first piece of accounting software I used on the job was Peachtree Accounting 2003. I was self taught and had selected Peachtree to use in my own small business.  I liked how Peachtree was organized; however, I am a trained accountant so Peachtree appealed to me.  Besides at the time QuickBooks was still at the level of being a glorified version of their Quicken.

 Now, it’s very similar to the latest version of QuickBooks, and offers virtually all the functionality of QuickBooks. There’s less gray unlike QuickBooks ; the interface and layout are very clean, the different templates are customizable as they are in QuickBooks, and it offers all the supplementary functionality credit cards, good journal layouts, invoicing, POs, SOs, etc. All in all, this is a great piece of software, and is a wonderful place to start for any small business. It’s not to heavy on the pocket, and you don’t have to be a rocket scientist to figure out how it works. Oh, and Peachtree offers some drill down functionality like QuickBooks.

Peachtree – The Bad

Like QuickBooks, Peachtree comes out with a new version every year.  It too is not backwards compatible.  Again this may be for reasons of profitability.

 

What about the components of QuickBooks and Peachtree?  Basically I look at three basic aspects of both programs.  The database, client interface, and reporting.

Database

I thought I would start with the key component of each program, which is the database.  This is essentially the heart of each program.

Peachtree’s database is very well designed and interfaces well with programs such as Excel.  I have found that when I need to review a database and or repair one, that Peachtree’s database is very user friendly and allows for simple fixes.  I have had to transfer database components from an old company database to a newly created one.  This was to do a complete repair of a company’s data.  Peachtree makes it very easy to do this and even provides great documentation as to the best order to use to effectively make the change.  The process is very smooth and Peachtree even has it set that when you go to re-reconcile the accounts the reconciliation tic marks are already there.  It makes balancing a breeze.  Peachtree allows for the easy export and import of the data and uses the Excel data set known as a CSV file to accommodate the viewing of data while in transition.

QuickBooks has a very comprehensive database and it too is easy to interface with Excel.  There is plenty of information in the database so if you need to fix something it is easy to locate and repair.

I have also had the opportunity to convert a database from an old database to a new one.  QuickBooks has attempted to make the information so user-friendly (probably to assist the layperson), that the data is harder to convert.  I found that the process was harder and I did have to spend time viewing the data to assure it was working correctly.

QuickBooks also has documentation to help you with making a conversion which makes the process fairly easy.  I did find that the use of what QuickBooks calls IIF files to be a bit cumbersome and in the end I had to re-balance pretty much on my own.   The IIF files were essentially text files, while I could open them in Excel, I had to convert to CSV to work with the file and then convert back to text.  This process can lead to additional mistakes.  I think that the direction that QuickBooks approached the database, while great for the layperson, makes it harder on someone who needs to do behind the scenes work as there is too much information to sift through.

Advantage Peachtree.

Client Interface

Peachtree has been working hard on its client interface.  It has become more user friendly over the years.  Both Peachtree and QuickBooks offer a pushbutton navigation where you select where you want to go by simply pushing the icon of what you want to do.  You can generally locate what you want by checking around the menus.  There is a bit of a learning curve as to all of the functions that Peachtree has.  For most versions there is a very comprehensive training guide that really clarifies all that Peachtree does.

QuickBooks remains the most user friendly interface.  The menus, sub screens, and point and click options are very user friendly and make it a breeze to navigate around.  I also like how the reports are titled so you pretty much can find what you need.  Some versions of QuickBooks even have a module where you can make your own reports.  This module works with Excel, making the customization of reports very easy.

Advantage QuickBooks

Reports

 

Peachtree comes with a great report package.  There are plenty of reports to choose from so you can see what your business is doing and more importantly how it is doing.  The reports allow for some drilling down into the data for a quick review of where the numbers come from.  Customization of the reports within the program, once you have trained on how to do it, is very comprehensive and allows you to get something more to your liking.  The downside as I mentioned is there is a learning curve as to how to do this.  Peachtree does have good documentation on how to customize reports, but you will spend some time figuring this feature out.   You have the option to export the reports to Excel to work with the item further if you wish.   Peachtree also comes with Crystal Reports so you can further customize some reports and forms.  To have full access to Crystal you do need to pay an additional fee and Crystal also requires extensive training in order to use it correctly. 

QuickBooks also has a great set of reports.  You can customize the reports within the program and it is menu driven.  Simply follow each page of the menu to locate and make changes.  The menu does limit your choices, however, so some things you may want to do may require you to export the report to Excel to accomplish customization to your liking.  QuickBooks also has a report customization module that in some versions you pay extra for and others it comes with the program.  This customization module works with Excel and allows you to create a report to your liking.

For reporting both programs do a great job and allow for a variety of ways to get the data you want.

 

What we can conclude about this look into the two most commonly used accounting programs is that each has its own merits and essentially it is up to the needs of your company and your accountant that should really be considered when selecting a program.

QuickBooks is definitely set for use by laymen and they market the product in that manner.  Peachtree does require a little more work to get to know, but once you do it’s a great program to work with.

I am a local expert serving clients with their software needs.  Specializing in Set-up, Training, Troubleshooting, Data-file clean up and customizing QuickBooks and Peachtree for your business!  By customizing QuickBooks or Peachtree for the way your business or organization operates, you can improve the performance and profitability of your business.  I have the experience and expertise to help you get QuickBooks or Peachtree working for you!  When set up properly QuickBooks and Peachtree will provide you with the financial information you need to run your business.

At Komisar Brady and Co. LLC.  We don’t just work with Numbers we work with People.

We have a team of professionals ready to understand and work with your business.  Whether it is consultation on your software needs to concrete tax advice we have the professionalism and expertise to give you the straight answer. 

If you are seeking balance between your Accounting and Tax needs we are ready to help you.  Stop by our website for more details and information at www.komisarbrady.com.

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