QuickBooks Basic 2005 isn't the only small business accounting software option, but it's certainly one of the most popular. More than half a dozen different versions of QuickBooks are currently available for Windows, so you can choose the one that best fits your needs.

QuickBooks Basic 2005 offers standard bookkeeping functions, including creating and managing customer and vendor information, tracking accounts receivable and accounts payable, setting reminders for bills, creating invoices for products or services, viewing reports by customer, product, or employee, tracking inventory, tracking sales tax, and printing paychecks. You can also create profit and loss reports, and track cash inflow and outflow.

You can use QuickBooks to manually process employee paychecks or subscribe to the automated payroll service. This is an expensive annual option, but if you have more than a few employees, the savings in time may outweigh the cost of the service. The Standard Payroll Service ($199 per year) includes updated tax tables. It also allows you to print paychecks or perform direct deposits, and automatically fill out federal tax forms. The Enhanced Payroll Plus Service ($399 to $499 per year) adds the ability to automatically fill out state tax forms and track and report workers' compensation costs. Enhanced Payroll Plus also includes a free upgrade to QuickBooks 2005 Pro or Premier.

Many accountants use QuickBooks, so you can copy your QuickBooks file to CD and give it to your accountant for end-of-year tax planning or at tax time. QuickBooks is also compatible with many banks and other financial institutions, allowing you to download checking account or credit card account information with just a few clicks.

For current QuickBooks Basic users, the new version mainly offers improvements to existing features rather than new features. It's easier to find a specific report than in the past and bill paying tends to run a little faster and more smoothly. The Help feature has also been improved, so that you're more likely to get a relevant answer to a specific question.

QuickBooks Basic 2005 is a good entry-level choice for many home office or small business users.

Pro: Offers most of the bookkeeping tools that most home office or small business users will need.
Con: Expensive. Doesn't offer enough new features to justify the upgrade price for current users. Yearly tax table updates are expensive.