I use exclusively QuickBooks for my accounting needs and the needs of my clients. Until something better comes around, I will continue to use them. This post is NOT a plug for QuickBooks but a look at the different software options they provide. At the time of this post, they have 4 different types of QuickBooks Online accounts and a multitude of QuickBooks Desktop options. Within each option comes with customizations that will help you grow your business or help with those tasks you dislike. To better understand which product will suit your needs, you have to ask yourself the most important question: Am I incorporated or a sole proprietor?

A sole proprietor does not necessarily mean self employed and self employed does not necessarily mean you are a sole proprietor. The two terms may be similar in meaning but they do mean two very different things. As a sole proprietor, your taxes are different and your treatment of certain accounting principles are different as well. Come tax time, your business income and expenses are summarized on your personal tax return and filed with a T2125. A sole proprietor is someone who is doing business as an individual rather than a corporation. Your business is you and you are your business.

As an incorporated business, your business is a separate legal entity and treated as such. Taxes are different and accounting principles and rules are slightly different. Some industries have regulations on whether or not you can incorporate and some industries have very specific rules on accounting that you have to follow. In Canada, there isn’t much difference between incorporated, limited, or corporation designated companies. An incorporated business is separate from you and you are separate from the incorporated business.

Once you have answered the questions (what am I?), we can proceed to discussing software choices. Keeping in mind that this post is strictly about QuickBooks. I know there are other software choices out there (Sage and Xero) and I have no experience with them yet.