ACCOUNTING LABORATORY AND APPLICATION SOFTWARE (ACC204)

PEACHTREE AND SAGE 50 ACCOUNTING PACKAGE

Peachtree was the original name of what is now known as Sage 50. It was originally
developed by a company called Peachtree Software, which was one of the first
companies to produce accounting software for small businesses. Sage acquired
Peachtree in 1998 and eventually rebranded it as Sage 50 in the early 2010.
Key Points About Peachtree (Sage 50)
1. Transition from Peachtree to Sage 50:
The software has retained most of the original features and structure that Peachtree
had but has been improved and updated over the years to include more modern
features, such as cloud backup options and advanced reporting tools. Sage 50 has
kept the same robust accounting foundation of Peachtree while adding new
functionality for today's business needs.
2. Core Functionality:
Like Peachtree, Sage 50 continues to focus on small to medium-sized businesses,
offering modules for General Ledger, Accounts Payable, Accounts Receivable,
Inventory Management, Payroll, Job Costing, and Financial Reporting. It includes
powerful tracking, reporting, and accounting features that have been consistent since
the Peachtree days.
3. User Interface and Navigation:
The interface may still be familiar to long-time Peachtree users. Sage 50’s layout
retains the traditional design of Peachtree but is updated for usability, allowing for
intuitive navigation across tasks like billing, inventory, and vendor management.
4. Peachtree Users Transitioning to Sage 50:
If you previously used Peachtree and are returning to Sage 50, you’ll find that many
processes, workflows, and accounting functions are very similar. Sage 50 has made it
easy for Peachtree users to migrate their data and adapt without needing to re-learn
everything.
5. Data Migration:
Peachtree data can be seamlessly transitioned into Sage 50, allowing long-term
users to access historical data without losing information. Sage also offers tools and
customer support to assist with data migration for long-time Peachtree users.

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In essence, Sage 50 is the modern, rebranded version of Peachtree, continuing its
legacy as a trusted accounting solution for small and medium-sized businesses. If
you're familiar with Peachtree, Sage 50 should feel familiar yet enhanced with more
features and better support options for today’s business needs.

QUICKBOOKS VS SAGE 50
QuickBooks and Sage 50 are two of the most widely used accounting software
options for small to medium-sized businesses, each with its own strengths.

COMPARISON
1. Ease of Use
QuickBooks: Known for its user-friendly interface, QuickBooks is intuitive and easy
to navigate, making it a popular choice for those without an accounting background.
Its simplicity and cloud-based options make it accessible on the go.
Sage 50: While also user-friendly, Sage 50 is slightly more complex, with a more
traditional layout better suited for those with some accounting knowledge. It’s
powerful but may have a steeper learning curve than QuickBooks.
2. Features and Functionality
QuickBooks: Strong in invoicing, expense tracking, tax calculations, payroll, and
financial reporting. It includes powerful automation features, like automatically
categorizing expenses, syncing with bank accounts, and generating insights.
Sage 50: Known for its robust accounting and inventory management, Sage 50 offers
advanced features, such as industry-specific tools, detailed job costing, and
departmental accounting. It is ideal for businesses needing deep financial tracking
and analysis.
3. Inventory Management
QuickBooks: Offers basic inventory tracking in most versions, with advanced
inventory features available in QuickBooks Desktop Premier and Enterprise. It
works well for small to mid-sized inventory needs but may lack depth for complex
inventory management.
Sage 50: Known for strong inventory capabilities, Sage 50 includes advanced
inventory tracking, costing, and stock management, making it ideal for businesses
with significant inventory management requirements.

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4. Payroll
QuickBooks: Payroll integration is straightforward and can handle employee
payments, tax filings, and benefits with ease. Payroll is an add-on but integrates
seamlessly.
Sage 50: Payroll is robust but can feel more complicated to set up. It handles
deductions, tax filings, and benefits well but may require more expertise for setup
and use.

5. Pricing
QuickBooks: Offers various subscription levels for its online and desktop versions,
typically on a monthly basis. While QuickBooks Online offers flexibility with cloud
access, the price can add up, especially if you need advanced features like payroll.
Sage 50: Often more expensive upfront due to its licensing structure, especially for
the desktop version, which is paid annually. However, it can be more cost-effective
for businesses that only need desktop access and don’t require a cloud version.
6. Cloud vs. Desktop Options
QuickBooks: QuickBooks Online is fully cloud-based, allowing users to access data
anywhere with internet access. QuickBooks Desktop is available as a desktop-based
solution, but with fewer options for remote access unless hosted on a third-party
server.
Sage 50: Primarily a desktop-based solution but offers Sage 50cloud, which includes
cloud backup and sharing options, allowing remote access to data, but it isn’t fully
cloud-based like QuickBooks Online.

7. Industry-Specific Needs
QuickBooks: Suited for most small businesses, but specific versions like
QuickBooks Desktop Premier include industry editions for construction,
manufacturing, and non-profits.
Sage 50: Has industry-specific tools that may appeal to businesses in manufacturing,
distribution, and construction, with options for deeper cost tracking and project-
based accounting.

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8. Reporting and Analytics
QuickBooks: Offers a wide range of customizable reports, though some advanced
reporting features are available only in higher-tier versions. QuickBooks Online also
has built-in analytic tools.
Sage 50: Known for its in-depth reporting, with numerous customizable templates.
Sage 50’s departmental and project-based reporting is ideal for businesses needing
detailed financial tracking.

WHICH TO CHOOSE?
Choose QuickBooks if your business is small to mid-sized, you need easy cloud
access, and you prefer an intuitive, easy-to-use interface with quick access to
essential features.
Choose Sage 50 if your business requires more robust inventory management,
advanced reporting, and job costing, or if you have industry-specific needs that Sage
50 handles well.

Both are excellent options; QuickBooks generally wins on ease of use and
accessibility, while Sage 50 is better for those needing more robust accounting
capabilities.

STARTING SAGE 50
Step-by-step guide to get hands-on with Sage 50 Accounting. This guide covers the
essential setup and everyday tasks, helping you build a solid foundation in Sage 50.

1. Set Up Your Company in Sage 50

 Launch Sage 50: Open Sage 50 and select Create a New Company.
 Company Information: Enter basic details like your company name, address,
fiscal year start, and industry. Sage 50 will customize your setup based on this
information.
 Choose Chart of Accounts**: Select a pre-built chart of accounts based on
your business type, or create a custom chart if you have specific
requirements.
2. Familiarize Yourself with the Sage 50 Dashboard
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  The main dashboard has several tabs: Customers & Sales, Vendors &
Purchases, Employees & Payroll, Inventory & Services, and Banking.
 Each section has specific options for performing tasks like adding new
customers, recording payments, and running payroll.
3. Set Up Your General Ledger (GL)
 Access Chart of Accounts: Go to General Ledger > Chart of Accounts.
 Edit or Add Accounts: Use pre-existing accounts or add new ones specific to
your business needs. Assign appropriate account types like Assets, Liabilities,
Equity, Revenue, or Expenses.
 Save: Once set, your Chart of Accounts will be the foundation for all
transactions.
4. Add Customers and Vendors
 Add a Customer:
 Navigate to Customers & Sales> New Customer.
 Fill out customer details (name, address, email, payment terms) and save.
 You can add notes or set payment terms for each customer for better
management.
 Add a Vendor:
 Go to Vendors & Purchases > New Vendor.
 Enter the vendor’s details and save.
5. Enter Opening Balances (Optional)
 If you are starting Sage 50 in the middle of your fiscal year, enter opening
balances for customers, vendors, bank accounts, and other accounts in the
General Ledger.
 To enter opening balances: Go to Setup Guide> Opening Balances and input
current balances for each account.
6. Setting Up Inventory (if applicable)
 Access Inventory: Go to Inventory & Services> New Item.
 Add Details: Input item code, description, purchase and sales prices, and set
reorder levels if applicable.
 Save: This will help you keep track of stock levels and costs associated with
each item.

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7. Creating Transactions: Sales, Purchases, and Payments
 Create a Sales Invoice:
 Go to Customers & Sales > Sales/Invoicing.
 Select the customer, add items or services sold, and enter quantity and
price.
 Save or print the invoice, depending on how you prefer to share it with
customers.
 Record a Purchase:
 Go to Vendors & Purchases > Purchase Invoice.
 Choose the vendor, add items or services purchased, and fill in quantities and
costs.
 Save to record the expense or payable.
 Record Payments Received:
 Go to Customers & Sales> Receive Money.
 Choose the customer, select the relevant invoice(s), and record the payment
details.
 Pay Bills:
 Go to Vendors & Purchases > Payments.
 Select the vendor, choose the outstanding bill(s), and fill out the payment
method and amount.
8. Manage Bank Transactions and Reconciliation
 Record Deposits: Use Banking > Deposits to record money deposited in your
bank account.
 Bank Reconciliation:
 Go to Banking > Reconcile Accounts.
 Match transactions in Sage 50 to those on your bank statement, adjusting any
discrepancies to ensure your records are accurate.
9. Payroll Setup and Processing
 Set Up Employees:
 Navigate to Employees & Payroll > New Employee.

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  Enter employee details, pay rates, tax information, and any
benefits/deductions.
 Run Payroll:
 Go to Employees & Payroll> Pay Employees.
 Enter hours worked and calculate taxes automatically, depending on your
setup.
 Print or distribute pay stubs to employees.

10. Generate and Customize Reports

 Basic Financial Reports:
 Go to Reports & Forms > Financial Statements to generate Income
Statements, Balance Sheets, and Cash Flow Statements.
 Customer and Vendor Reports:
 In Customers & Sales or Vendors & Purchases, access Aging Reports to see
outstanding balances.
 Customizing Reports: Select Customize within each report to add specific
data fields, filter by date, or tailor the report layout.
11. Backup and Data Security
 Manual Backups: Go to File > Backup and save your data regularly to
prevent data loss.
 Automatic Backup: Schedule automatic backups in Sage 50 to simplify this
process and ensure you always have recent data saved.

Following these steps will help you get comfortable using Sage 50, and you’ll find
that regular use will make it feel second nature.