Software Comparison: Peachtree versus Quicken

What to do? Your company is big enough to have ventured past bookkeeping on Microsoft Excel, yet it is still small enough that you cannot afford the expenses associated with operating a full line accounting package.

May I recommend investing in a software package that is tailor-made for a small, but growing company? Two of the most recognized packages out there are Sage Software's Peachtree and Intuits Quicken/Quick Books.

While these two packages offer similar features, each has a slightly different interface. Following is a brief overview of each package; which I hope will help in your decision making process. Since both packages are quite similar, the deciding factors may be price and the potential for expansion and conversion, if your business grows by leaps and bounds.

Peachtree

Peachtree comes in a standard single-user format, which you can buy for about $100. This release would be perfect for an owner-operated company. It is easy to use, even for first time accounting software users. Peachtree designed its format to be extremely user friendly, which means easy navigation and menus that are well labeled. One of the items it touts is that its check format looks like checks in your check register. It is super simple to set up new vendors and get the checks cut.

You can also find a multi-user release, which will get you up to five users; naturally the cost goes up with the number of users. Peachtree has a release (Peachtree Quantum) that can accommodate up-to 30 users. The cost is around $9,500.

Peachtree has releases that are custom tailored to construction, distribution, manufacturing, and non-profit. Each of these releases comes with industry specific features. For example, the construction module lets you do progress billing, and has a feature to let your track insurance expiration dates. These industry specific releases are in the $600 dollar range.

Payroll is an add-on for the standard user, but larger releases have the payroll module. A drawback is that you must pay for the tax table updates each year. Direct deposit is available as a separately purchased program. The payroll is easy to navigate and you can generate all the necessary reports. You can purchase additional add-on packs that allow you to file your payroll taxes from the software.

Quicken

Intuit offers their very popular financial software as a business and professional version. Quicken has a pro-package that averages around $200. Quicken also offers a premier package that goes for about $450. These are all single-user prices. With each additional license the cost will go up. For example, a 3 user Pro edition will be about $550.

Quicken offers a unique feature. It allows you to interface with Microsoft Outlook and Outlook Express. Quotes can be sent directly from Quicken using your Outlook contact information. It also has a time tracker function which works with Outlook also. It tracks how much time you spend with each client via Outlook or Express for billing purposes.

Quicken also offers packages that are custom made for the construction, manufacturing and non-profit sectors. One downside to Quicken is that inventory is only available on the Premier edition.

Again, payroll is available with the tax tables being a pay-to-update service each year. Direct deposit is available to Quicken users. The only problem area in Quicken payroll is the user writes the payroll liability. A friend of mine who works in an accounting firm indicates that this is where they find the most errors in their client's bookwork. While, I advise caution in this area, once you understand how to write the liability you should be fine.

One plus to Quicken is that it supports Point of Sale (POS) transactions. Processing credit cards and downloading the transaction information directly into Quicken is possible with several of the Point of Sale add on packs.

Both packages recommend running a Pentium II or higher system. In fact, Peachtree requires Pentium III for its single user package. Something to keep in mind: Peachtree no longer supports dot matrix printers.

Windows XP or Vista are the only operating systems supported by the current releases of both software packages.

A very handy feature that both packages offer is the ability to do web accounting. Remote access is possible on both software packages. Quicken has an unusual feature that would allow your accountant to make modifications online to your books (I'm not sure if that is necessarily a good idea).

Both systems require you to update your software at intervals. In Peachtree the interval is every 3 years. In Quicken it is every 4 years. You may choose not to update, but you lose your customer support at that time.

Finally, Peachtree and Quicken both have 24/7 customer support.