Quickbooks made by Intuit, has been the #1 accounting software for a number of years. They have gone through a lot to make the software a robust and powerful tool for any small to medium business to keep track of their income, expenses and general accounting information.

Quickbooks is typically updated every year (2006, 2007, 2008 etc...) and has a variety of versions to choose from, based on the type of business you own. So, which version do you need?

There are three main versions of Quickbooks that you should be familiar with. (These are based on the 2008 versions)

1. QuickBooks Simple Start Plus Pack
2. QuickBooks Pro 2008
3. QuickBooks Premier Editions 2008

QuickBooks Simple Start Plus Pack is great for the brand new business or very small business. It will allow you to create invoices, print checks, track sales, expenses, and sales taxes and in general, keep tabs on your money. While it is very limited in what it can do (compared to Pro), It is a great version to start with and get your feet wet. The MSRP price for Quickbooks Simple Start Plus Pack is $99.95 which shouldn't be too far out of the price range ball park for any small business. Click here for a list of features

If you think QuickBooks Simple Start Pack will be right for you, click here to purchase directly through Amazon.com.

QuickBooks Pro is the next step up for small business accounting software. Featuring all of the great options of QuickBooks Simple Start Pack, Quickbooks Pro adds a host of features to help any small business with semi-complex accounting needs. Several of the features that you might be interested in include: the ability to download credit card and bank transactions, track employee time and expenses to bill to clients, automatically populate and print 1099s and 1096s for independent contractors, process shipments and print labels for FedEx and UPS, and a host of other options. A list of features can be found here.

Quickbooks Pro has an MSRP Pricetag of $199.95 which may seem steep to some small business owners, but the enhancements are well worth the price. If you would like to purchase Quickbooks Pro 2008, click here.

QuickBooks Premier Editions is the next step up for complex small and medium business accounting, geared for specific industry driven companies. The Premier verion contains all of the goodies of QuickBooks Pro along with a huge selection of additional caveats. A full list of caveats can be found here.

The following is a list of QuickBooks Premier versions that are tailored to your business type:

• Accountant Edition - Provides all-in-one bookkeeping, write-up, and financial reporting tools to help accounting professionals work efficiently with multiple QuickBooks clients
• Contractor Edition - Recommended for: builders, general contractors, remodelers, subcontractors, specialty trades and more!
• Manufacturing & Wholesale Edition - Perfect for manufacturing and wholesale distribution software that offers standard accounting features, plus time-saving tools for managing inventory and costs, tracking customers orders and monitoring business performance
• Nonprofit Edition - Allows your organization to demonstrate financial accountability, manage fund-raising efforts, and ensure your nonprofit organization's success.
• Professional Services Edition - Simplifies tracking time and expenses for easier, more accurate billing.
• Retail Edition - Specifically designed for retailers. Includes reports and tools to help you manage your business finances more effectively.

MSRP for Quickbooks Premier starts at $449.95 but can be found cheaper on Amazon.com

A lot of business owners purchase Quickbooks and don't look back. They purchase version 2002 and are still using it today in 2008. This presents a bit of a problem. Let's say you upgrade your computer to windows Vista and Quickbooks 2002 isn't supported for Vista. This means you have to upgrade from 2002 to 2008. A lot has changed between 2002 and 2008 which "can" present a major problem for you.

While most companies attempt to make their software backwards compatable, (Meaning the 2008 version "should" recognize the 2002 version) this is not always the case. Many times, the newer versions will either not recognize an older version of the database, [or] it will recognize it but have a really hard time upgrading it to the new version. Do you really want to break your accounting information you have entered over the last 6 years?

The recommended method in upgrading versions of Quickbooks, is to purchase every two years, three at the absolute most. While this does seem like a pricey option, just remember that it is a business expense. Your finances are the most important part of your business. It is the reason you are in business.

On top of updating to the latest version to ensure compatability, you will also gain all of the updated features of the newer versions of QuickBooks!