That Bookkeeper

Small Business, Simplified

Linux bookkeeping: calculating payroll

I had yet another Windows setback last week. I had some automatic updates that needed to restart the system in order to finish up. Upon reboot, it got to 35% complete and then…nothing. I eventually did a hard reboot. A couple of days later, I was back in Ubuntu, backing up my important files before doing a clean install. No matter how many tips or tricks I tried, I could only get into Safe Mode.

To make matters worse, Friday was payday for one of my clients. Of course, all of those records are in QuickBooks, which I couldn’t get to until I was done backing up and restoring my OS. I ended up getting it done, and it wasn’t as difficult as I had imagined.

Revenue Canada has always had downloadable tax tables and a fairly good Windows app. I didn’t realize they also had an online payroll calculator. It’s really good. It handles all the calculations, prints off a decent PDF “paystub”, and even gives you a total for how much you need to remit. Unfortunately, it only gives you this for each employee. There’s no way to get a running total for all the paycheques you make.

Long term, this isn’t a solution on its own. I need to have a system to track the year-to-date totals, and it doesn’t handle things like advances or non-taxable deductions very well. But when I was done, I realized that this and a well-made spreadsheet would do a pretty good job, especially if you’re only tracking a handful of employees. If you are working for a bigger company (maybe 10+ employees), you’ll either need a proper application or a spreadsheet black belt. You wouldn’t want to get those year-end calculations wrong, or you may end up with a call from a Revenue Canada auditor.

This doesn’t solve all of my problems yet. I would still need a fairly robust accounting app, but this was exciting to realize that I had options if I was temporarily without a Windows install.

8 Responses

  1. If you want to stick with Ubuntu long term, I might recommend setting up your Windows install as a virtual machine.  This way you can boot into Windows from inside Ubuntu.  I’ve been using VMWare Workstation to boot into Windows 7 from Ubuntu for when I need to use Windows-only software.

  2. Thanks for the comment. 

    My only concern is with QuickBooks. I’ve heard horror stories about having database issues when running it virtually. If I were to lose or corrupt my client’s files, I’d be in big trouble. If I find a solution for QB, or if I ever migrate to an online or Open Source option, I’ll no longer have a need for Windows, even virtually. Wouldn’t that be nice?

  4. I’ve checked out quite a few of them. Xero, WorkingPoint, and WaveAccounting all have full featured accounting options. The big benefits to QuickBooks are for the bookkeeper/accountant, rather than the business owner. 

    I can get a full featured accountant edition of QB for $25/month. The same plan on Xero is $39, and $19 on WorkingPoint, but that’s per company. Since I have multiple clients, I would need to setup separate accounts for each one, which makes it more expensive. It’s also nice to not have to manage multiple logins.

    WaveAccounting is a free option, but I believe WorkingPoint is the only one that supports full inventory management, which I sometimes need. Finally, payroll. I’m not sure why this is an expensive or non-existent add-on. Xero, Freshbooks, and Wave don’t do it at all, and WorkingPoint charges $50/month (per client).

    I so desperately wish that someone would come along and solve this from a bookkeeper’s perspective. Even Quickbooks own online product (US only) would cost me $65/month per client. If I had the time and the skills, I’d just write my own. Maybe someday…

    Thanks for the discussion. Given the length of my reply, I think I need to do another post on this, with some comparisons between the online options.  

  5. I see yeah that does inflate costs.   Though from your client’s perspective, some might be okay with paying a premium for shared access to a web based accounting solution like Xero.  And apparently you can get a discount as a ‘partner’:
    http://www.xero.com/partners/bookkeeper/

    Looking forward to your rundown of the online options.

  6. Good point. Or even setting up Freshbooks & Shoeboxed accounts, and having it be part of a special online bundle. If I had as much time as I did ideas that need implementing…could somebody please work on the 30 hour day for me?

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  8. Thanks for the comment. That sounds like a lot of work you had to do. I don’t envy you during that year. It’s amazing to me how different everyone’s systems are; especially seeing the way big companies handle internal bookkeeping.