| So here's a question that individuals and small | | | | stored in a Money file. |
| businesses have to ask themselves every year: Do I | | | | However, while it is simple to move data from one |
| need to upgrade the Microsoft Money software | | | | program to another, there's little reason to do so. |
| again? | | | | Despite the advertising claims of the companies |
| Should you upgrade Microsoft Money every year? | | | | making the software-Microsoft and Intuit-there is not |
| This is a good question. Every fall, the corporations | | | | much difference between the programs. Certainly, |
| that make and sell personal finance and small business | | | | there are nuances and subtleties that differentiate |
| software-Microsoft and Intuit-release a new version | | | | the two tools. But in terms of core features and true |
| of their software programs | | | | usefulness, I don't think there are good reasons to |
| Money and Quicken. This makes some sense because | | | | switch from one to the other. Both programs are |
| tax rules change every year and over the past few | | | | very good and extremely useful. Once you make the |
| years online banking opportunities have increased, and | | | | decision to begin using one of these tools and have |
| those changes have warranted new software | | | | begun to reap its benefits, there is little to be gained |
| features. | | | | by moving to the other product. |
| However, I think it isn't necessary to upgrade your | | | | By far, the most important "upgrade" or "switch" that |
| software each year. Sure, you can upgrade without | | | | you can make is to simply stop using the |
| trouble or headache. Other than the expense of | | | | paper-and-pencil method for tracking your financial |
| upgrading, there is no reason not to do so. And, in | | | | affairs and instead step up to using a product like |
| truth, each year's software product is slightly better | | | | Money. Or Intuit's Quicken. |
| than the previous year's product. | | | | Some Closing Caveats |
| In general, however, the new features added from | | | | However, do let me make one final comment. While |
| one year to the next are not so useful that it means | | | | Microsoft Money is a very popular product for small |
| that you should automatically, unthinkingly, upgrade. A | | | | businesses, if you incorporate your business or run |
| better approach for most people is to upgrade every | | | | your business as a limited liability company that's |
| other year or every third year. Another good | | | | treated for accounting purposes as either a |
| approach is to upgrade only when you see that the | | | | partnership or a corporation, you may want to |
| new version of the software includes features that | | | | consider (at some point in the future) an upgrade to |
| are of particular value to your financial management. | | | | a true small business accounting program like |
| What about switching from Money to Quicken or | | | | Microsoft's Small Business Accounting or Intuit's |
| vice versa? | | | | QuickBooks. |
| Switching from one personal finance manager-like | | | | A corporation, a limited liability company treated as a |
| Money-to another personal finance manager-such as | | | | corporation, and partnerships all have more |
| Quicken-isn't difficult. The information that a program | | | | complicated accounting requirements because they |
| like Money or Quicken collects is stored in | | | | have multiple owners. This complexity can easily |
| easy-to-interpret data files. | | | | overwhelms the functionality of Microsoft Money |
| As a result, Money easily retrieves data stored in a | | | | (and Quicken, too). |
| Quicken data file, and Quicken easily retrieves data | | | | |