Ask HN: My product idea: Easy Bookkeeping, Simple Accounting

You'd probably have to support these basic features:

Write Checks

Track Account Balances and Transactions - These need to be able to be imported in standard formats. The format Quickbooks uses is XML. I found it simple enough to reverse engineer that I was able to convert CSV dumps from my bank to QBO files and get them importing into Quickbooks.

Categorize Transactions - I need to be able to say what each transaction is. I should be able to setup filters to automatically categorize imported transactions. For example, at the convenience store Wawa, I buy exactly two things, coffee and gas. If the transaction is less than $5, I want it to be categorized as personal food, if it's over $20, I want it to be categorized as gas. I should be able to set this up, and never have to categorize one of these transactions again.

That's all it would really take. You would probably want to integrate with one or more invoicing systems to track receivables. You could setup an API then build connectors for popular applications, like Freshbooks. A good interface for accounting for bank deposits would be helpful as well.

Steve Blank's post on the subject is a good read: http://steveblank.com/2010/02/22/no-accounting-for-startups/

Fred Wilson also shared this thoughts: http://www.avc.com/a_vc/2010/03/accounting.html

I have been offering SQL-Ledger (and its fork LedgerSMB; both open source) hosting, training, support, customization for many years. (See my info)

Though both packages are targeted to small to medium sized business, the biggest problem I find with new users is they always find it difficult to learn. This is mostly because of a large number of features even for smbs (and also because accounting software does require you have a basic understanding of accounting) And no one has time to read the fine manual.

I have been experimenting for the last few months by removing/rearranging menus, adding context sensitive help/tips, making it more user-friendly but still not satisfied with the results.

So yes I also want to target exact same segment (bare basics accounting system for freelancers, micro-isvs, and small businesses) but I need to do a lot of work/testing before doing that.

I think I'll go for it! =) MVP will be doing simple bookkeeping and generating the three financial statements. These are the basics of accounting. I guess even if nobody buys it or subscribes to it. I will still end up with something I really need. Thanks again.

Basically when breaking into an existing market, you want to be at least 15% better than the competition to convince people to switch. That doesn't mean you have to START better, but you should have a good idea of what you can do to accomplish that.

Well, that's when I got hold of a Tax accountant and had a really in depth conversation with her about book keeping, financial statements and tax. I came out concluding that there are so many small nitty gritty rules that need to be satisfied (I'm thinking its the same situation in the US).

She recommended Sage Instant Account Plus, and while it is by far the least innovative product from an engineering point of view, it does the job and most important of all, it does it right. A good example would be that I need to submit a VAT statement to HMRC (UK's IRS) every quarter. Sage does it in a few clicks, and I can trust that the numbers look correct.

Now, Sage does have an import facility. I take 1-2 hours a month to do all my book keeping. Revenue is automated, expenses is not (manual entry). I'm reducing my supplier list and it should come down to a solid 1 hour a month.

If you're still compelled to move forward with this. Here is what I would look for:

1. An API to automate revenues. I really don't think putting in 1000s of monthly transactions is a good investment of time

2. Consulted and signed off by a number of accountants. This brings credibility to your service. I think this is important because I really don't want to be in a position 5 years down the line and owe the tax authorities £££

3. Ease of use! Sage is clunky. I can't count the number of times I had to use the "Corrections" facility and ammend/delete incorrect transactions. These are all expenses that I've manually put in, so, part of the blame has to go to me.

4. Don't stop at just the 3 sheets (balance, P&L, cash flow). Do add reporting facilities and a way to classify revenues/expenses. Would be good if you'd chuck in ratios as well.

These are the big ones for me. Sage sorta does (1). Its definitely (2) as its one of the most trusted accounting apps. Forget Sage on (3) and it does (4) in a really odd and clunky way (you need to put in different account types for different revenue streams and what-nots, uugghh).

I would prefer if its something I can run on my own server/desktop. If its a one-off fee, I would see something like £400-£500 a reasonable figure to pay for this.

If its an SaaS, I would see anywhere between £10-£20 a month. But there's always the 'trust' issue here.

HTH!!

It is always good to have competition, even if intuit, xero, etc do the same thing.

$5 is ok.