Personal accounting software performs accounts payable type accounting transactions, simple account reconciliation and management of budgets, for you. These accounting softwares are simple and easy to use. They are inexpensive as well. A personal accounting software helps you save time that you would otherwise take in organizing and managing your finances.

For up to date information, these softwares help in tracking the credit card and other transactions automatically. You can access financial information in one place from various sources. You can save time automatically with these accounting softwares. You can just download any information related to banking, credit card and alike. You can manage your budget better by easily handling regular payments such as, bills or income.

Personal accounting software is very simple to use and has no complicated accounting terms. You can start using it from the day one itself. You can use one as an asset manager, bank book or stock/inventory keeper. All the entered data are interlinked for easy browsing. There are various categories of personal accounting software that can be used by small business firms, professionals, doctors, engineers, lawyers, and accountants among others.
 
Two of the most popular personal accounting software are Microsoft Money and Quicken accounting software. In the ensuing battle between the two, Quicken has a slight edge over Microsoft Money. The Quicken deluxe edition presents charts and graph, checkbook balancing, online bill paying, budgeting, and the ability to download financial data.

The premier edition from Quicken has tax planning and investment management tools. In fact, it is believed that Quicken is a better choice for personal finance novices. One disadvantage of Quicken is that it no longer supports QFX file downloads from banks (QFX and QIF are the two main formats used by banks), so check your bank's Web site for compatibility. Quicken also comes in Mac version.

Microsoft Money 2005 comes in four editions. The Standard version has basic financial tools, while the Deluxe edition offers investment planning. Premium edition includes capital gains tracking and the Small Business edition provides financial tools related to business planning. If your bank only supports QFX files then Microsoft Money is the better choice, since it supports both the main download formats.

Microsoft Money has made significant improvements over the past few years, so Quicken's edge is not large. But, if you are new to personal accounting software, go for Quicken.