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THE TERM PERSONAL FINANCE SOFTWARE IS A MISNOMER. Today's packages for Windows, DOS, and the Macintosh can manage small-business as well as personal finances. Also, the accounting power such software offers is far easier to implement than packages that use a lot of CPA doublespeak.
At the core of every personal finance program is a computerized checkbook register. Each time you write a check, the program records the transaction and lets you assign the expense to a category, such as food. This way, at the end of a fiscal period, you can view expenditures by category and compare them with budgets you've set in the program. In addition, all of these programs can split transactions among several categories, print reports and traditional financial statements, and display data in helpful graphs.
Their features also save time by memorizing and executing checkbook transactions, printing your checks, simplifying reconciliation, and performing calculations. At bill time, you just sign the check and mail it. Many packages also support online services, such as CheckFree and Bank OnLine, that let you pay bills electronically (at extra cost), and they'll even remind you when bills are due.
Although full-fledged accounting programs are more powerful, typically providing general ledgers, invoicing functions, and inventory management, personal finance software can do the job for many small businesses, especially those without inventory. Most of...