THE PROBLEM: For most of my adult life, I have been thrilled by the idea of owning my own business. I now do, of sorts, and am planning both to expand and diversify. However, I am facing one mountain of a challenge which I find daunting, and often, I think I should just scrap everything, including what already exists.

My problem is accounting - as in doing the accounts for the business. The business started up August 2008, and so far, I have not made a profit. I have had to put a tidy sum out of my tiny pocket into it, and I continue to do so; but it is a slow-returns business - self-published book overseas which is available on the Internet and at some book stores in Jamaica. Out of nothing, I have had to pay an accountant to do some accounting and file income-tax returns for me this month, and I do not see myself anytime soon being able to afford this on a regular basis.

I feel quite overwhelmed by all that accounts involve, and I wonder if you might have any ideas and suggestions that you could pass on to help me overcome this challenge?

- L. Iona Halliman, author

THE RESPONSE: Hiring an accountant could cost in the region of $6,000 per hour, so use of their services on a weekly basis might be beyond the means of some small businesspersons.

While one cannot completely avoid employing the services of these professionals, they suggest that for daily record keeping it might suit Halliman to acquire accounting software and the skills to use them.

The software can cost tens of thousands of dollars, but the really financially challenged can, if they have access to the Internet, download small-business accounting packages for free.

All accounting professionals polled suggested that the best product was QuickBooks.

There is a version of the software Intuit QuickBooks Simple Start Free Edition 2009 that, as its title implies, is free for download.

"With QuickBooks you are able to get reports easily," says Maxine Farquharson, a freelance accountant in Kingston.

If you are just starting to keep records, it will also indicate where you need to enter data, such as your sales records. It walks you through the system and shows you how to do accounts. Even a novice can learn with QuickBooks, says McFarlane. And it can also be customised to the type of business.

Theresa Baine of Simon Palmer and Associates in Kingston says her company offers QuickBooks Simple Start 2008 software free of cost. But training set-up and pointers is $15,000 plus GCT.

QuickBooks 2009 costs $10,500 and training, $6,000 plus GCT per day.

Baine says small businesspersons must prepare themselves to complete daily tasks required for record keeping.

"In working with them, many expect to be competent overnight. However, it takes dedication, discipline and commitment to input data and create records," she tells SmallBiz: Problem Centre.

QuickBook, she said, will help keep track of clients, who are the best ones, how cash flows through the business - including sales figures and expenditure - and whether or not you are making a profit or loss.

"It is really financial record keeping at the tip of your fingers. It will also help you to create budgets as well."

But QuickBooks won't help with doing payroll because, as Clive Palmer, CEO of Simon Palmer and Associates points out, it is a North American product created in a different jurisdiction, with different laws.

Locally, the software which does payroll is TurboPay, created by the Jamaican company Consoft Technologies Jamaica Limited. TurboPay retails for about $40,000 at Simon Palmer. Training is offered at $6,000 plus GCT per day.

But, for everyday record keeping, Quick-Books appears to be the answer.

According to Baine: "Once we have shown how to enter data daily, at tax time, they will only need an accoun-tant to file returns. Otherwise, you should be able to do your own cash-flow projections, including for the bank, after you have mastered QuickBooks."

Palmer says QuickBooks can be mastered in two days, but notes that the more one uses this system, the better one will be at record keeping.

"It is a matter of practice," he says.

"The main advantage is ease of use. It is our biggest selling product among our clients."

avia.ustanny@gleanerjm.com