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