Ask Slashdot: How To Run a Small Business With Open Source Software?
First time accepted submitter ahree writes "I'm starting up a restaurant with my wife and a few friends and, well, I'd like to support the OS community and hope that this is a way to do it. Simply put, we need to take care of bookkeeping, accounting & payroll and I'd rather not use QuickBooks. I've heard of some options that are open source (GnuCash), some that are cheaper & simpler (WaveAccounting), but I'm wondering what your experience with them (and others) has been like."
The best way to support the Open Source community is to contribute; not just to get free software.
I would say most small businesses I know actually don't use any specific financial software, but do everything in a spreadsheet package. Excel rules the small-business world in a lot more ways than you might expect. You can probably do most similar things in LibreOffice. Now whether this is a good idea varies. The con is that you can end up with a sprawling spreadsheet-and-macros mess, but the pro is some flexibility in doing complex things, and simplicity in doing easy things.
GnuCash is not a bad option either, but it works best if your processes map on cleanly to one of its default processes. It does standard double-entry bookkeeping just fine. Its documentation is pretty good, also. But if you want to be doing significant scripting or customized report-generation, I find spreadsheets easier than dealing with GnuCash scripting+reports.
Depends on what kind of business to some extent. For example, if you need to interface with shopping-cart software or something of that sort, you may have more specific requirements.
10 PRINT CHR$(205.5+RND(1)); : GOTO 10
My first thought is that opening a restaurant is one of the hardest things in the world to do. If going open source helps lighten your load or costs in a significant manner and makes the restaurant launch more likely to succeed, then swell.
If however its going to be a case where you cant get support, stuff doesn't work, and nobody is available to help bail you out when fixing your software isn't in the top 50 on your priority list...
Advice on Restaurant Ownership... It's going to be tough, long, and either the wife or friends won't be a wife or friend by the end.
Consider the future, you or someone will bow out. Accountants and/or Lawyers will be involved and they don't know GnuAnything. They know QuickBooks.
You may sell your restaurant as a group, the buyer will likely want to see the accounts in QuickBooks.
You may be successful! congrats! you can now hire an accountant, they'll want QuickBooks.
In short, pool the wife & friend's money, pay the minor entry-fee for QuickBooks and save yourself the time (which you'll need the most now).
Good luck!
http://www.sql-ledger.com/ ugly as sin but it does *everything* and it's reliable. Good community support.
"I'm starting up a restaurant with my wife and a few friends
I don't know if it's wise to risk your investment in your restaurant for the sake of supporting the OS community. When I recommend software, open source or otherwise, I always suggest the very best software available to do the task at hand. It sounds like you are looking for a shortcut and that never pays off.
Here are the steps you should be following:
1) Find best software
2) Is it open source? Then support the product. If not, then buy a license.
3) PROFIT$
First of all, I've been using GnuCash for my personal finances for 10 years now, and I'm very happy with it. It taught me double entry book keeping, and basic accounting concepts that I found useful in other situations.
Having said that, I would not recommend GnuCash for your business because:
1. You will need to share your data with your accountant, and they understand QuickBooks or PeachTree only.
2. GnuCash's business functions (invoicing, inventory, paychecks for your employees, loans, etc) are woefully inadequate.
3. GnuCash's reporting functions are inadequate.
I would say go with PeachTree, and support open source software in some other way (say donating some of your profits).
Good luck
In Soviet Russia, articles before post read *you*!
If the OSS software you find is inadequate or if some features are missing, consider complaining (politely) to the appropriate mailing list or forum. User experiences is a very important information for software developers and most will welcome your insights. Even if you end up giving up on OSS, please send an email to the dev of the solution saying "well, I gave up on your software because I can't easily separate weekday sales and weekend sales". It can really help improve the overall quality.
The Wise adapts himself to the world. The Fool adapts the world to himself. Therefore, all progress depends on the Fool.
I've been involved in the bookkeeping end of several small businesses. My suggestions .... as to payroll, do not do this in house. Its a PITA, and you will wind up either making mistakes you will come to regret, or spend more time on it that you might be able to use more wisely somewhere else. Keeping up with local tax districts, who lives where, when the govt(s) (assuming you are US) decide to make some subtle change to tax regulations. Penny wise, pound foolish to do this in house for most small businesses.
As to basic accounting and booking, I am not aware of anything that does the sheer number of things that QuickBooks can do, or as well. But I haven't tried everything. This sounds to me like the kind of thing that is hard for free / open source projects to compete with. Maybe your needs are very simple? I would suggest some of the SaS products like FreshBooks. These may not meet your critieria of open source projects per se, but many of these have open API's which is a step in the right direction. Also, these are likely built with open source projects, eg Apache, Ruby, PHP, MySQL, Python and so on, so there is some second hand support of open source that way. They also free you from the local installation situation, and can be accessed via mobile or remote locations (ie work from home), with zero hassle. I have used FreshBooks for accts receivable situations, and found it very nice. Compared to QuickBooks, I would opt for FreshBooks for billing and invoicing easily. I have not looked at with acct payables or general ledger in mind though.
Get quickbooks POS edition.
I watch Restaurant Impossible on the foodnetwork and the first mistake any struggling restaurant makes is not knowing costs, revenue, and profit per item. The second is poor food quality.
A POS system with a restaurant add-on will keep track of EVERYTHING. It does so automatically as long as you put the costs in your waitress will print the bill and all this information is updated automatically. Free software? Come on you have a business to run and need to know numbers.
Customers are paying you for a service. Not for you to play with FOSS and the better you know what you are doing right and where you are messing up and spending too much time the better your company performs. If you have extra time I would highly recommend a finance and accounting class 101. You will learn a ton and your accountant would appreciate it. You can have the most awesome food in the world yet go broke otherwise! It does happen as many restaurants spend half their time in catering and not know the costs lose money every month thinking they are getting rich from the revenues of it, yet not knowing the profits. If you do not know the difference between a revenue and a profit then another reason to use quickbooks to handle it though your cash registers and take a finance 101.
http://saveie6.com/
Productivity:
--Ubuntu (base OS)
--Openoffice (office tasks)
--Gimp (photo editing, photoshop alternative, lacks CMYK though)
--Inkscape (vector editing, illustrator alternative)
--Scribus (book/graphic design, vector+photos on multi pages, indesign alternative)
--Gmail (email)
--Google apps (professional gmail, sending from yourdomain.com vs. gmail)
--Simple webpage for reservation system (if you take reservations)
The biggest issue on top of this is the POS and accounting functions. I haven't researched open source tools for this and you don't want to mess these up. I'd pay for something decent in this area.
As other have said, don't take chances with the accounting - bite the bullet and go quickbooks. When my wife and I started our law firm 20 years ago, we did our own accounting and it was not ideal at all. After the business grew we hired a CPA to take care of everything and that is where we moved to Quickbooks. Quickbooks makes it much easier to integrate with other businesses and government agencies than some homegrown set of spreadsheets and such. That being said, there's more to running a business than accounting.
You will need a phone system. Phone systems don't require much maintenance, but when they go down, you need to get them back up immediately. My best investment was to learn the open-source Asterisk PBX system. Take an old pc, get a card with some phone jacks for connecting your analog phone lines (Or get a voip provider assuming you have reliable and adequate bandwidth), go buy some phones that do SIP (I've been happy with Grandstream devices) and you're good to go. No need to run separate phone lines - just run ethernet and have data and phone.
Asterisk is a relatively easy system to program, and there are appliance distributions like AsteriskNow that greatly simplify things. Over the years, I've been able to integrate xmpp/jabber messaging, video messaging, integration with customer records for incoming calls, etc. I even integrated a front-door intercom that rings reception with the ability to unlock the door with the press of the star key. So far, every idea I have had for improving office communications has been readily handled by Asterisk. Asterisk is one of those amazing open source projects like Apache that provide such a robust framework while still maintaining simplicity of use.
You need an accountant. Your accountant will support one or more packages. Pick one and use it.
You can try to find an accountant who supports open source. It might work!
If I used a sig over again, would anyone notice?
You've got to remember that using FOSS software doesn't mean that you aren't going to have an expense for this. One of the downsides of FOSS is that it is generally software that "scratches the itch" of those willing to develop code for it. It doesn't mean that the software is lower quality, just that they may not have covered everything you need. Also, it may not be the easiest thing to install. If you aren't a Linux geek, or you now don't have time to be since you are running a restaurant, make sure you have some competent local support lined up. Proper install, setup, and security is important and can't just be swept under the rug.
Also, another somewhat obvious suggestion is to make sure you can line up an accountant that is familiar (or willing to become so) with the software you choose for the books. If you find one that actually uses some FOSS, they would have better advice on what packages to use, since they are more familiar with the accounting/regulations side of things.
Be aware that regional corporate and finance laws may be different than those of the software developers'. Commercial software has a general business requirement to keep up with those and supply the necessary patches. In absence of the commercial incentive to "not get sued over missing a patch" you will need to make sure that you have that covered. A few dollars of support to a local programmer (in conjunction with the aforementioned accountant to keep things moving in the right direction) will keep you out of the legal ditches as well as ACTUALLY support FOSS software.
In general, there is a price to pay for freedom. There always has been. If you want software that isn't locked up by greedy or laconic software corporations, you can't be greedy either. You still need to pay for the expertise to keep things on track and actually support the free environment that you wish to take advantage of. Costs are still there. They just shift. If you go in with open eyes, it won't shock you. It's still worth the investment. It just takes a slightly thicker skin to (hopefully) get a slightly cheaper and more customized outcome.
seriously it a resturant,
1. POS is normally a hardware/software package, you get what you get, same with the accountant use what he uses, inventory software universally sucks FOSS sucks, proprietary sucks and most of the time the effort put in setup exceedes the effort of doing it manually;
2. email server, use google and put the time you save not BSing a mailserver use on your resturant's facebook page;
3. Seriously it's a resurant making a menu once in a while is probably the biggest workout office is likely to get, beside liberoffice/openoffice reads Word documents as well or better than Word reads non-current version of Word documents.
4. liberoffice/openoffice can save in PDF format natively and there are boatloads of FOSS for scanning to pdf.
the majority of the transactions with vendors are going to be hand-written invoices paid either with cash or the Debit card.
Apocalypse Cancelled, Sorry, No Ticket Refunds
Starting a new business is reallly hard. Why make it more complicated by trying to piece together a bunch of software that sort-of works. You didn't say what kind of business you're starting, but for a 5 employee or fewer business quickbook is really pretty good. And there is no reason to do payroll your self. It's really just too hard to get right, and you can get it almost for free from Quicken or your bank.
If you think you might be looking for a credit facility (aka a loan) your bank will be looking for specific items in your financial statements. They will not be impressed that you're supporting the FOSS community.
I'd look for the software that meets your needs--if it helps your business prosper and if costs a few hundred bucks it's a good investment. A license for Office is about $200, quickbook pro (with payroll) is about $40 per month.
In starting a business, your time is probably the most valuable thing you have. Get out there and sell!
I own a small business and I had similar ideas of using FOSS, but when I evaluated I decided that I first need to do what is best for my business, and that ended up being to use software created by Intuit and Microsoft.
The compromise I made is that when things are going smoothly enough and I well know my business processes, I will work with developers who are experienced with the appropriate FOSS projects and create a system that will work well for me. I think this will end up being better because when I am contributing, I will be doing it as an experienced business owner in that category, and this will help out others even more than trying to push the square block through the round hole while my business crumbles.
I once took an excursion to Reddit, and later HN. Unlimited up/down voting sucks when dealing with a hive-mind.
Google Mail? It might be good, but companies better check their contracts. Since the small companies usually don't have public stock, Sarbanes-Oxley may not be an issue, but with clients is may be. To boot, not all mail providers be able to furnish documentation of SOX compliance. Come audit time, you really want that stuff ready to go when the auditor is present and requesting documentation.
You would think that a company like Genentech with 11,000 employees would know a thing or two about whether or not their Google Apps email solution meets all of the regulatory requirements they are subject to.
Finally, who is the customer with Google Apps, the people using it... or the advertisers? Google might have a conflict of interest in that department. I'd rather stick with a mail provider paid for completely by the end user.
You seem to be confusing the free version of Google mail with the paid Google Apps for Business which defaults to not serving ads.
Zimbra may be good enough for a college student to get their latest Facebook confirmation E-mail, but in a professional environment, it is not up to the task. This isn't to say OWA is perfect, but there are a lot of business functions that are Exchange-only:
Zimbra has Outlook and mobile device integration, all secured by TLS/SSL
Connectors. Yes, these are nothing more than just TLS connections with known certificates, but a lot of companies feel better when their clients are able to have a dedicated, encrypted connection.
I don't even know what that means in the context of an email server? Are you talking about a persistant connection between Outlook and the email backend or a VPN?
In any case, Zimbra can do more than deliver Facebook status messages, they have a pretty broad customer list
Policies. Almost all devices work with Exchange, and fewer and fewer lie to it about capabilities. If a device went missing, triggering a remote erase will work regardless of which maker or OS is on the device. No other E-mail system has this in place.
Data at rest encryption. Exchange can pretty much guarantee that any device touching it either lies convincingly about encryption (like earlier Android versions), or actually implements it.
Zimbra has had remote wipe for years. Even Google Apps has remote wipe capability. And they can also enforce encryption and other ActiveSync security policies.
If one wants to play GSA contracts, this might be a major factor for state or Federal business.
Maybe Google doesn't know anything about the government sector.
Believe it or not, there is competition in the email server market, but most companies don't bother because once they buy the CALs and build a server infrastructure to run their other Microsoft applications, Exchange doesn't add much more to their Microsoft cost. But some companies are still finding it cost effective.
bookkeeping, accounting & payroll
OpenERP does that. Also Point Of Sale (there is a special restaurant POS module too), asset management, stock management, HR, CRM, and 500 other (optional) things including (hotel) restaurant management.
It's written in Python, backed by PostgreSQL and has both web and standalone clients. It will happily run on one PC or scale to dozens, even hundreds, of users. Or you can use it online for a modest fee: demo.
It is Free and Open Source supported by a commercial company based in Belgium, with offices in the US and India, and an international network of partners; 10 in the US. Being FOSS you don't need to be an official partner to be able to support it.
I use it for factory operations (using my own custom modules) and think it's well worth consideration by any SME that's looking for this kind of thing.
The first thing you should do is find a good CPA, that you are comfortable with. Then sit down with him and go over what he expects from you in the way of reporting and see what he recommends for a software package. You may be surprise as I have noticed more and more CPAs are including opensource packages on their list of packages.