Paper Versus Software
If you currently manage your business using paper and pencil and are happy with your system, you probably don’t need to upgrade to a computer program. Those of you who already use Quicken or Simply Accounting to manage personal finances can easily use these programs to manage your business. And in my estimation, most magicians can probably manage their businesses using a personal finance program without having to learn and use an accounting application. Service businesses are usually easier to manage then retail, or especially, manufacturing businesses.
When might you need to take the plunge and consider using a full-fledged accounting application? If you want to bill your time; manage expenses with sub-contractors or employees; project cash flows, automate invoicing and billing processes or are selling magic-related items and want to track sales and inventory, you may be a candidate for an accounting application.
Keep in mind that accounting programs take a lot of effort to setup and learn to use. While programs such as QuickBooks try to minimize the accounting and CPA terms, you will spend a considerable amount of time getting your charts of accounts together, learning the program and more.
Bottom Line
If you’ve clearly outgrown your paper bookkeeping system, I recommend that you obtain trial versions of these programs and see if they do what you want or expect them to do. And I would first try one of the personal finance managers before evaluating a full-fledged accounting program. Only you know enough about your business to determine if these programs meet your needs.
-Wayne N. Kawamoto, MBA
