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What should I use my copy of Quickbooks or Peachtree to do?

I answer this question a lot. If you're asking it, then it's very likely that, from an accounting standpoint, you're a layman. You haven't spent 20 years in public accounting. You probably have a basic business which isn't involved in anything too complicated or international.

If this describes your situation, then perhaps a better question is “how can I save the most time using a computer?”

Now the answer is easy.

• Accounts Receivable
  Keeping track of who owes you how much over what period of time is the primary time saver. The ability to design and print invoices with a professional appearance is certainly helpful, but the main benefit of the computer is that it never forgets. It will also track the aging of your receivables. Even if you use it for nothing more than this, it will save you time.
• Accounts Payable Handling
  Accounts Payable with the computer is a bit more difficult. Rather than just grabbing a bill, cutting a check, and popping it in the mail, you first have to enter the bill into your system. Then you go through the rest of it, sometimes wrestling with the computer. Some customers like this process, and others don't.
• Payroll
  If you don't have a payroll service, then this will be quite helpful. Processing the individual withholding amounts and the payroll tax deposits on a general ledger program will save you plenty of time. You will have to make sure to update the program continually according to the latest payroll tables and information. Generally though, this is a good idea.
• Inventory
  Computerizing your inventory will not save time. In all of my years of practice, I have never seen a virtual inventory that was correct. Never. You will spend a ton of time on this, and when you take your physical inventory, the computer version will still be wrong.
• Loan Balances
  Unless you can split principal from interest on your individual payments, don't even try it. Also, depending on the type of loan, the schedule of principal versus interest will change every month.
• Bank Balance
  This depends a lot on your background and ability. The problem is that you probably don't have the time to turn on a computer every time you need to write a check. This means that you’ll have to do all the work twice . If you don't mind doing that, and if you know how to reconcile the bank statement with the computerized version, then go ahead. On the other hand, many customers would rather just keep their account balances by hand, finding it easier and less time-consuming. A lot of this will depend on the size of your company. If you’re writing 1200 checks per month, then you are certainly not going to want to do it by hand.

I could go on, but I believe that I have made the central point clear. There are certain aspects of your business in which a computerized accounting system will increase efficiency and save time, and others in which it will waste time and drive you nuts.

At the end of the day, you need someone experienced and highly capable to do your books. Don't try to do everything yourself.