The Best Personal Accounting Software

Quicken 2010

Since Microsoft Money has been discontinued, Quicken 2010 is the clear top pick among personal accounting software options this year, thought it edged out Money in past years. For one thing, Quicken provides automatic downloads from more financial institutions than any other personal accounting software on the market. Quicken also offers more features than any other software, including automatic categorizations of downloaded transactions, investment tracking, and saving, budgeting and planning functions. Conveniently, you can import data from Quicken directly into Intuit's TurboTax, and Quicken helps you identify expenditures that are tax deductible. Quicken 2010 also has a conversion utility that allows you to migrate data from Microsoft Money to Quicken, though no reviewer we consulted has tried that out yet.

Experts agree that Quicken is easy to set up and use. The 2009 versions of Quicken added a tab that incorporates all setup functions in one location and links to online instructional videos, as well as a function that directs the user to help embedded within the software or available online. Quicken 2010 adds a help side bar with dialogue boxes that take you through things like adding an account or a recurring bill payment reminder. A backup function gives you the option of saving your data on removable media or using Quicken's online backup service; pricing for the latter varies depending on the amount of data you need to store. Free customer support is available via online chat (available 24/7) or email, to which Intuit promises to respond within a day. Phone support costs $25 per call, but some calls are free, such as those regarding installation problems or issues importing data from an earlier version of Quicken.

Quicken 2010, like Quicken 2009, comes in four PC versions, and for the first time since 2007, a new Mac version, Quicken Essentials for Mac (*Est. $60), is available (released in February). The PC versions include Quicken Starter (*Est. $30), which has basic tools for tracking accounts, bills, debt and investments, documenting tax deductions, and paying bills online; and Quicken Deluxe ( *Est. $40), which adds the ability to download and track your 401(k), IRA and investment account information, along with more advanced portfolio management, savings and tax-planning tools. For most users, Quicken Premier (*Est. $70) has more than they'll ever need, with great home page displays of cash flow and other financials, document scanning, the ability to attach documents electronically to transactions, superior management and planning tools, stronger reports and excellent portfolio tracking.

Quicken Home & Business (*Est. $65) can do all of the above, as well as prepare customizable invoices and track and maximize Schedule C deductions. It can also monitor accounts receivable, accounts payable and upcoming bills. However, those with more ambitious goals for their financial software should keep in mind that Quicken is designed for individuals. For small businesses, accounting experts recommend entry-level professional accounting packages like Quickbooks (*Est. $100 to $300, depending on version) and Peachtree Premium Accounting (*Est. $225), which are beyond the scope of these reports.

Intuit provides online support for three years after you purchase your software, so only those with pre-2007 versions need to upgrade to Quicken 2010 in order to continue that support. According to experts, although Quicken 2010 does have some improvements, most notably a newly designed user interface, there's no other real reason to upgrade if you're satisfied with your current version.

Alternatives to Quicken

Moneydance (*Est. $40) lacks the financial planning tools that Quicken has, but otherwise has most of the same features, including automatic downloading of financial data from the user's accounts, though it doesn't connect with as many institutions as Quicken 2010. It is cross-platform software that works with multiple operating systems, including Windows, Mac and Linux. Moneydance supports multiple currencies and offers translations into many languages, including Spanish, German, French and Korean. These features, as About.com's Shelley Elmblad points out, "set Moneydance apart from other personal finance software packages and make it useful to a wide population of international customers." Moneydance 2010 includes several new features including capital gains reporting, as well as new tagging options for filtering reports and graphs.

Another advantage of Moneydance for many users is that it does not include advertising in its software, unlike Quicken. It includes a backup utility so you can set up automatic backups and store data, and you can also encrypt data for added security (but you must remember your password or you won't be able to retrieve it). Support functions include an embedded help program, an online user's guide, a user's forum and email support. You can get a free trial download that lets you manually input 100 transactions and import an unlimited number, so you can see for yourself whether Moneydance meets your needs. Those who bought Moneydance 2008 after March 28, 2008, can upgrade to the 2010 version free of charge; otherwise an upgrade costs $20.

You Need A Budget 3 (*Est. $60), also known as YNAB, is another well-reviewed but less well-known option for personal finance. Users can track income and expenses, reconcile accounts and generate their own reports. YNAB 3 comes with three basic reports: spending by category, total spending and current balances. YNAB does not automatically download data from financial institutions, however; you must either enter it manually or download it and then import it. YNAB 3 has added more customizable features to the previous version, YNAB Pro, and is available for Windows, Mac and Linux operating systems.

YNAB 3 wins kudos from two of our top-rated review sites, FinanceSoftwareStore.com and PersonalFinanceSoftwareReviews.com. YNAB Pro gets an average rating of 4.5 out of 5 from more than 140 users on Amazon.com, who like how easy it is to set up and use, and Kiplinger.com recommends it for those who "need extra motivation to achieve financial discipline." Although YNAB 3 is more expensive than some software programs, upgrades are free for life. You can get a seven-day free trial download, and it comes with a 60-day money-back guarantee. Users report that YNAB's online forum is helpful in answering their questions, and that customer support is excellent.

SplashMoney is available in a desktop version (*Est. $20) that runs on both Windows and Mac operating systems, as well as a mobile version (*Est. $30) that's bundled with desktop software and is available for Palm devices, Pocket PCs, BlackBerrys and iPhones. Reviewers say SplashMoney is best suited for users who are new to financial accounting software and just want to manage financial accounts and set up a budget with basic reports. You can download transactions directly from many financial institutions, though the software does not automatically categorize them. However, there are none of the advanced planning or investment-tracking features that other applications offer. Brian Hart, writing at The iPhone Blog, likes the fact that the software supports many types of accounts and multiple currencies and provides real-time currency updates. About.com notes that SplashMoney is perfect for novices and those who want a simple way to manage their accounts and track spending. SplashMoney offers a 30-day free trial and a 60-day money-back guarantee, so it's easy to try it out without making a commitment.