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Quicken 2005 Home & Business Users Guide

1. From the list of outstanding invoices choose the one to which this payment applies Fra Outstanding Invoices Project Job Fundraiser Strategic PI Pay Date o 14 1 2004 Type Number Orig Amt Due Date AmtDue Payment Invoice 101 1 899 34 6 4 2004 1 719 34 Invoice 102 2 502 71 6 4 2004 2 502 71 0 00 When you enter a customer name and payment amount Quicken automatically applies the amount to the oldest invoice To apply the payment to a different invoice click the Pay column next to the invoice to remove the check mark and then click next to the invoice you do want to apply the payment to You can apply full or partial payments Quicken will calculate and keep track of the outstanding balance for each invoice When you record a payment three things happen e The value of your invoices receivables account decreases by the amount of the payment e The value of your bank account increases by the amount of the payment e Ifyou use cash basis accounting you will have an actual increase in income Entering a down payment If a customer sends you a down payment in advance of a job there is no invoice to which you can apply payment You should enter the down payment in the Customer Payment form as usual Quicken displays the entire payment amount in the Total to Apply field Quicken holds the unapplied amount with the customer s name so that when you do have an invoice for this customer you ca
2. 1 Choose Business menu gt Invoices and Estimates gt Print Statements 2 Inthe Layout list select a layout 3 Inthe Customers area select whether you want to print statements for one all or a list of selected customers e Ifyou choose One select the name from the list Ifyou choose Selected click Choose and then select the customer names from the list 4 Inthe Dates From and To fields set the date range to cover the period you want 5 Inthe Statement Date field enter the statement date Quicken prints today s date on the statement by default You can manually enter a different date if necessary Optional 6 Click Print and then click OK To learn about Search the Help Index for finance charges finance charges statement layouts form layouts Quicken 2005 33 34 Managing accounts receivable invoices Managing accounts payable bills Adding a bills payables account 36 Recording a bill 36 Paying a bill 37 If you use accrual basis bookkeeping you must track your accounts payable bills in a Quicken bills payables account If you use cash basis bookkeeping and pay your bills as soon as you receive them then you do not need to add a bills payables account J ust use the Quicken Scheduled Transaction feature to remind you to pay your bills The accounts payable reports may still be helpful though for managing your cash flow and tracking unpaid bills Note For moreinformation about scheduled
3. Even when you no longer own an asset and its value in the asset account is zero don t delete the account If you re ever audited you ll want a report that includes it J ust mark it as hidden these are excluded from reports 1 Choose Business menu gt Go to Business Center 2 On the My Data tab in any accounts snapshot click Edit Account Quicken displays the Account List Click the Manage Accounts tab Select the account you want to hide Click the Hide In Quicken check box Click Close A wW Quicken 2005 59 Recording thefts or losses of fixed assets You track a theft or loss of a fixed asset somewhat similarly to a sale However you will need a new expense category for example Uninsured Loss Your asset account should already contain information about the asset s original cost and its accumulated depreciation If an asset is lost or stolen you need to enter information about insurance money you collected and the amount not covered by insurance 1 Choose Business menu gt Go to Business Center 2 On the My Data tab in the Business Spending amp Savings Account snapshot in the Business Spending area click the business checking account that contains information about the asset s original cost For example in the screen shot on page 58 the computer was purchased with funds from Biz Checking so Biz Checking is the account you want to open in this step to enter the amount received from insurance
4. 3 Inthe Payee field enter the name of the asset or information about the payee payment For example you could enter Biz Computer or Insurance company payment for Biz Computer 4 Inthe Deposit field enter the amount you received from the insurance company 5 Inthe Category field select the name of the asset account For example in the screen shot on page 58 the asset account for the computer is called Biz Computer so Biz Computer is the asset account you want to select in this step 6 Click Enter Quicken enters a transaction in the asset account that decreases the value of the asset by the amount of the insurance check 7 To enter the amount not covered by insurance Choose Business menu gt Go to Business Center 8 On the My Data tab in the Business Property amp Debt Accounts snapshot in the Business Asset area Click the account for the asset 9 Inthe Payee field enter the name of the asset 10 In the Decrease field enter the amount not covered by insurance the remaining balance for the asset 11 In the Category field type Uninsured Loss If this is the first time you ve entered this category Quicken displays the New Category dialog Click Yes enter the information Quicken requests and click OK Click Help if you need more information 12 Click Enter The asset account Ending Balance reads 0 00 60 Tracking profitability and calculating equity Liabilities Creating reports for loan applica
5. Intuit Getting Started with Quicken Premier Home amp Business ______ 2005 Trademarks Intuit the Intuit Logo Quicken Quicken Loans QuickBooks QuickPayroll and TurboTax among others are registered trademarks and or registered service marks of Intuit Inc in the United States and other countries Other parties trademarks or service marks are the property of their respective owners and should be treated as such Various Quicken products and services are protected by one ormore of the following U S Patents 5134564 5423033 5649115 5842185 5903881 and 6446048 Some names company names and sample data used in examples and help content are fictitious and are used for illustration purposes only Any resemblance of fictitious data to a real person or company is purely coincidental Citi and arc design and Citibank are registered trademarks and service marks of Citicorp and may not be used without express permission Microsoft the Internet Explorer logo and Windows are either trademarks or registered trademarks of Microsoft Corporation in the United States and other countries RSA Digital Signature and the RSA Logo are trademarks or registered trademarks of RSA Data Security Inc in the United States and other countries SECURITY Intuit software contains Macromedia Flash Player software by Macromedia Inc Copyright 1999 2004 Macromedia Inc All rights reserved Macromedia and Flash are trademarks of Macromedia Inc
6. N KAM ENABLED KeyHelp ActiveX control copyright 2003 Keyworks Software Work Write Inc All rights reserved Quicken contains the GAIib algorithm package by Matthew Wall Copyright 1995 1996 Massachusetts Institute of Technology and Copyright 1996 1999 Matthew Wall All rights reserved Copyright 2004 Intuit Inc All rights reserved Unauthorized reproduction is a violation of applicable laws www intuit com www quicken com Features Services Terms and Conditions All features services and any terms and conditions are subject to change without notice Online services whether provided by Intuit or other parties are available only in the U S require Internet access which is not provided by this product and may expire in accordance with the then effective Quicken sunset policy available at www quicken com sunset These online services may vary from participating financial institutions and may be subject to application approval terms conditions and additional fees Contents Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Getting started with Quicken 1 How good record keeping benefits your business 2 Which bookkeeping method should you use 3 Which chapters should you read 4 Setting up Quicken for business use 5 Which accounts will you need 6 Keeping business and personal data separate 6 Setting up business categories 8 Setting up classes 13 Managing accounts receivable invoices 15 Adding
7. Quicken displays the Category List 2 Inthe lower left corner click Add from List Quicken displays the Add Categories dialog 3 In the Available Categories list choose Business Quicken displays business categories in the list on the left 4 Inthe list of business categories click in the left column to select the ones you want to add or click Mark All to select them all Quicken displays a check mark next to each category you select 5 Click Add Quicken moves your selected categories to the Categories to Add list on the right side of the dialog 6 Click OK Quicken adds your selected categories to the Quicken Category List Adding more preloaded business categories If you want to add more business categories with the correct tax form already assigned or if you need more information about whether you are eligible for certain deductions follow these steps 1 Choose Tax menu gt Go to Tax Center 2 In the Tax Related Expenses YTD snapshot click Options and then select Find Other Deductions Quicken displays the Deduction Finder window 3 Inthe Choose a Deduction Type list select Self Employed and then follow the on screen instructions To learn about Search the Help Index for categorizing transactions categories overview of the Category List lists Category List using the preset Quicken categories categories preset categories adding new categories categories creating entering a transaction with
8. in asset account 58 recording 59 designing forms 25 disbursements reporting on 42 discountitems 17 E E displayed in register for expenses 22 employee employer relationships 69 equipment depreciating 57 equity calculating 62 on balance sheet report 61 tracking 62 estimates converting to invoices 19 creating 19 example 19 itemizing products and services 19 layout 25 QuickBooks Pro feature 68 expenses assigning to customers 22 comparing for different periods 42 reporting for a single class 49 reporting forall classes 48 reporting for all projects jobs 47 tracking with classes 47 expenses and income dividing a bill among product lines 48 on profit and loss statement 55 sample report for a single class 49 tracking with categories 12 F farm enterprises tracking 13 finance charge items 17 financial planning 44 fixed assets defined 57 depreciating 57 recording thefts or losses 60 selling 59 tracking value 57 forecasting cash flow 46 forms credit 28 designing 25 estimate 19 invoice 20 payment 27 refund 28 Forms Designer 25 formula for value of fixed assets 57 H holding account for undeposited checks 28 income comparing for different periods 42 reporting forasingleclass 49 reporting forall classes 48 reporting for all projects jobs 47 Quicken 2005 72 income and expenses dividing a bill among product lines 48 on profit and loss statement 55 sample report forasingle class 49 tracking
9. realized gain or loss unrealized gain or loss as an option and margin interest and other investment expenses during a specified time period Choose Reports menu gt Investing gt Investment Income For more details about using Quicken for taxes choose Help menu gt Contents click the Index tab enter taxes and select overview of Quicken 2005 51 Tracking mileage The Vehicle Mileage Tracker helps you track tax deductible mileage such as the distances you travel to charitable medical or business related activities Quicken helps you track all tax deductible mileage for multiple vehicles You can import this mileage information directly into TurboTax see Preparing for business income taxes on page 51 You can also track tax deductible parking and tolls Note Whether you can deduct mileage from your taxes sometimes depends on whether the deductible amount has reached a certain percentage of your adjusted gross income Before deducting mileage costs check with your tax advisor To track your mileage 1 Choose Business menu gt Go to Business Center 2 On the Analysis amp Reports tab in Tools click Vehicle Mileage 3 Inthe Trip dates fields enter the dates of the trip 4 In the Trip Type list select the type of trip Quicken associates each type of trip except for Other with the correct tax deductible rate Mileage rates are updated annually for up to two years after you buy Quicken To download cu
10. If you pay a single tax rate to a single government agency the Sales Tax liability account is all you need If you handle more than one tax rate you need to add a separate liability account for each rate Here s an example Let s say you collect sales tax from two counties in State X County A and County B For County A the sales tax rate is 7 75 percent you would set up a Sales Tax liability account with that rate Tax breakdown Tax rate County A 0 50 State X 7 25 7 75 Total sales tax percentage The sales tax rate for County B breaks down this way Tax breakdown Tax rate County B 0 25 State X 7 25 7 50 Total sales tax percentage 24 Managing accounts receivable invoices You would add another Sales Tax liability account for County B with a rate of 7 50 percent You add all the city county and state rates together When it s time to pay the sales taxes you ve collected open the Sales Tax account register and view the balance that is the amount you need to pay the tax agency When you write a check from your checking account to pay the taxes assign the transaction to your Sales Tax account Quicken reduces the balance of your checking account by the amount of the tax payment and reduces the liability in your Sales Tax account by the same amount To add another Sales Tax liability account open the Invoice form Choose Business menu gt Go to Business Center On the My Data tab in the Accoun
11. enter online payments and select overview of Creating accounts receivable reports One benefit of using Quicken to keep track of your customer invoices accounts receivable is the information you can gather by creating a report Quicken lets you create reports that show e Customer payment history e Unpaid invoices Sales by customer e Unpaid balances on all invoices broken down by customer Viewing unpaid balances by customer The preset accounts receivable by customer report summarizes monthly ending balances for customers in the invoices receivables accounts To view the report choose Reports menu gt Business gt Accounts Receivable To learn about Search the Help Index for customizing reports reports customizing accounts receivable report accounts receivable reports Quicken 2005 29 Tracking customer payment history Quicken can track how promptly a customer has paid each invoice From the invoice form click Payment History to see the payment history for the current invoice To create a customer payment history report 1 Choose Cash Flow menu gt Go to Cash Flow Center 2 On the Analysis amp Reports tab in My Reports click Show Other Reports Quicken displays the Reports and Graphs window with How am spending my money selected in the list on the left Reports are listed in alphabetical order Use the scroll bar to move up or down in the list fi Transaction Click the re
12. receiving 27 scheduling 45 payments to vendors See accounts payable payroll QuickPayroll 65 tasks handled by QuickPayroll 66 planning business finances 44 writing a business plan 69 product lines tracking 13 products adding to the item list 17 handling for resale 24 ordering from Intuit 68 profit and loss creating a statement 55 56 tracking 54 project job report by project 47 creating 48 projects jobs creating 18 definition 18 example 18 Project Job List 18 tracking 18 tracking expenses 22 tracking with classes 22 when to track 18 property depreciating 57 proposals QuickBooks Pro feature 68 Q QuickBooks trial version 68 upgrading from Quicken 68 using with QuickPayroll 66 Quicken backing up QuickPayroll data 67 setting up to track a business 6 8 upgrading to QuickBooks 68 using for managing your business 41 QuickPayroll backing up data 67 Internet access 66 list of payroll tasks 66 trial period 67 using with QuickBooks 66 using with Quicken 65 quotes QuickBooks Pro feature 68 R rates mileage 52 sales tax 21 receivables See invoices record keeping 7 reports 2 setting up 2 using categories 12 records needed for an audit 8 recurring transactions scheduling 45 Refund form 40 refunds 28 foroverpayment 29 from vendors 40 issuing for returned goods 28 registers invoices receivables 16 reimbursable expenses 22 rent scheduling payment 45 reports accounts receivable 29 balance sheet 6
13. 082 10 Amount po 7 10 fios E Emang Onsu ow r 5 Inthe Withdraw From field select the account to withdraw the payment from 6 Inthe Memo field enter additional information about the vendor or enter a note to remind yourself about the reason for the bill Optional 7 Ifyou are paying the bill with a check in the Number field enter the check number for tracking purposes Optional 8 Inthe Amount field enter the payment amount 9 Quicken displays a list of your outstanding bills from this vendor in Outstanding Bills area Click in the Pay column to select only the bills this payment should apply to Check that the vendor nameis correct seer nr a N Vendor Molotsi s Copy Center 7 It Click here to choose the bills this R aynen Outstanding Bills applies to Pay Date Project Job Type 7 6 1 2004 Publicize G Bill 6 4 2004 Write Traini Bill 38 Managing accounts payable bills 10 You can reapply the payment to other bills Optional To apply the payment to a different bill click Clear Pmts and then click the Pay column next to the bills you want to pay To have Quicken apply the payment to the oldest outstanding bills for this vendor click Clear Pmts and then click Auto Apply 11 If you have existing credit from this vendor and want to apply it to this bill click Apply Existing Credits Optional 12 Click Enter to record
14. 5 PR Handbook Business Gross Sales item 1 35 00 35 00 T one just type anew s _ name and follow the 8 a instructions E Brint 5 Subtotal 2500 00 Ea bos ustomer Message i z l look forward to working with you a pies iei A Total 2 502 71 Memo PR Jevitalization project Tax Account Sales Tax Bd Converting an estimate to an invoice When a customer accepts your estimate you can easily make any necessary modifications to it before converting it to an invoice The invoice appears in the invoice account you choose with the next sequential invoice number You can choose to either delete the estimate from the Estimate List or save it for reuse Choose Business menu gt Go to Business Center On the Analysis amp Reports tab in Tools click Estimate List Select the estimate you d like to convert On the toolbar click Convert In the Convert it to the following account list select an existing invoice account oOo uu A WY N e In the After conversion area specify whether you want to save this estimate for later use or delete it For example if you will be providing the same services to a customer on a monthly basis you can select Save this estimate for later use then simply convert it to a new invoice each month 7 Click OK to convert the estimate to an invoice Quicken 2005 19 8 If the invoice is correct click Save and Done to save the estimate and close the Invoice form Here s an example of
15. Choose Business menu gt Go to Business Center and click the Analysis amp Reports tab In Tools click Small Business Guidance Managing contact information Use the Quicken Address Book to organize and store the contact information you need when paying your bills or doing other financial chores It makes using Quicken even more convenient Choose Tools menu gt Address Book to enter contact information directly into Address Book If you already maintain contact information in another contact management application you can synchronize Address Book with your current contact list Choose Business menu gt Customers gt Synchronize Addresses Quicken with Intellisync supports Microsoft Outlook 98 2000 2002 ACT 4 02 or 2000 or Palm III V or VII Palm ACT and Outlook sold separately You can print Address Book entries as a list or onto labels or envelopes Alternatively you can export the contact information from Address Book into Microsoft Word and use the Mail Merge tool to print the information onto envelopes and labels You can also create groups of addresses This is helpful if for example you want to print a phone list of your suppliers and a separate list of your customers For more information about using Address Book choose Help menu gt Contents click the Index tab and enter Address Book overview of Quicken 2005 69 Other business resources The Small Business Administration SBA There are over 20 mill
16. Quicken Premier Home amp Business CD ROM and use it free for the first 30 days Choose Business menu gt Quicken Services gt Manage Payroll To continue producing paychecks after the 30 day trail period and get updated tax tables and forms you must subscribe to the QuickPayroll online update service You can subscribe to QuickPayroll at any time during the 30 day trial period QuickPayroll is fully enabled during the 30 day trial period You can explore the sample data create your own company data file and download software updates payroll tax schedules and forms Any company data files you create during the trial period can be saved and used when you subscribe to QuickPayroll After your 30 day trial period expires you can view the QuickPayroll sample data file and any company data files you created but you must subscribe to QuickPayroll to create or edit paychecks For more information about how to subscribe to QuickPayroll or to request a replacement copy of the QuickPayroll CD ROM visit www intuit com quickpayroll How QuickPayroll works with Quicken The first time you send data to Quicken QuickPayroll creates the following categories and accounts in Quicken to record your payroll expenses liabilities and assets The Payroll Expenses category tracks company expenses such as gross pay company paid payroll taxes and company paid benefits for employees e The Payroll Liabilities account tracks what you owe such as taxes
17. Tracks vacation and sick time e Tracks Advanced Earned Income Credit AEIC payments company loan repayments 401 k deductions tips union dues bonuses car expenses and many other nonstandard payroll items Allows you to specify extra taxes or deductions in addition to the standard federal and state taxes and to apply them to employees e Observes deduction limits for taxes and other deductions e Tracks your company s liability to the government insurance companies and other agencies e Records employee details such as pay and commission rates social security number and tax exemptions e Calculates and tracks hours worked keeps year to date totals for all employees and shows this information on reports e Creates checks to pay your company s payroll liabilities e Calculates and prints federal payroll tax forms 940 and 941 e Calculates amounts for and prints on Forms W 2 and W 3 QuickPayroll also Sends payroll data to Quicken QuickPayroll also exports this data to a QIF file for import into any other software application that supports the QIF format e Provides a variety of preset reports to give you quick and easy access to your payroll information 66 Resources for growing your business e Lets you create your own versions of reports you can customize both the content and format Exports report data to a Microsoft Excel spreadsheet Trying QuickPayroll for free You can install QuickPayroll from your
18. health insurance premiums or 401 k payments As you create paychecks for each employee the amount in this liability account increases When you write a check to pay your liabilities the amount in the account decreases You can generate a report in QuickPayroll to see the breakdown of your payroll liabilities e The Payroll Assets account tracks any amounts owed to you by the employee such as an advance or employee loan When you add the loan to a paycheck the amount in the Payroll Assets account increases When you record the repayment of an advance or employee loan on apaycheck the amount in the account decreases QuickPayroll sends your data to these accounts and categories not to any existing payroll accounts and categories you may have used when doing payroll manually For more information about converting from manual payroll tracking in Quicken choose Help menu gt Contents click the Index tab enter QuickPayroll and select converting from manual payroll Backing up QuickPayroll data When you back up your Quicken data Quicken does not automatically back up your QuickPayroll data You must back up QuickPayroll data as a separate step from within the QuickPayroll program From the QuickPayroll Help menu choose Help Index click the Index tab and enter backups Understanding what you see in Quicken QuickPayroll sends summary not detail data to Quicken All payroll data is stored in QuickPayroll Use the reports in QuickPayrol
19. most business reports That is the reports show expenses at the time you actually pay them and show income when you receive it For details on the bookkeeping methods available in Quicken see Which bookkeeping method should you use on page 3 If you use accrual basis bookkeeping you should customize the Quicken report settings Choose Edit menu gt Preferences gt Quicken Program In the Quicken Preferences dialog click Reports and Graphs To run accrual basis reports clear the check box labeled Cash basis reporting if applicable In order for this to work you must track accounts receivable as well as actual income To learn more see Chapter 3 Managing accounts receivable invoices Comparing income and expenses from one period with those of another A comparison report shows income and expenses from two different periods along with a column that highlights the differences between the two periods You can show the differences as dollar amounts or as the percentage change from the first period to the second or both To see a comparison report Choose Cash Flow menu gt Go to Cash Flow Center On the Analysis amp Reports tab in My Reports click Show Other Reports In the Select a report list on the right select Income Expense Comparison Click Customize In the Date Range and Compare to fields set the date range to cover the period you want A WY N Be On the Display tab in the Show area select Differe
20. multiple categories split transactions entering Quicken 2005 9 Adding tax information to an existing category The preset Quicken Category List probably includes most of the tax information you will need for tracking your business s tax related transactions If you need more though you can manually add a new category or edit an existing one to include tax information specific to your business 1 2 Choose Tax menu gt Go to Tax Center In Tools click Tax Line Item Assignment Quicken displays the Category List with the Tax Line Item Assignments area on the right side of the window If you do not see the Tax Line Item Assignments area on the right click the Display tax information check box at the top of the window to display it In the Category List select the category or subcategory for which you want to assign a tax form line item In the Tax Line Item Assignments area in the Tax item field select the tax form or tax form line you want to use Use the scroll bar to move up or down the list Quicken automatically assigns the new tax form line item to the selected category or subcategory When you re done assigning tax form line items click the Close button X in the upper right corner G Category List ioj xj Go to Recategorize Report Print Options How Do I Show an categories z F Display tax information Category Hide Description Tax Tax Line Item Tax Line Item Assignments Income EI EFExpense Sta
21. receive the bill not when you pay it Change your settings Once you decide on a bookkeeping method you can modify your Quicken settings to present report data according to that method Quicken defaults to cash basis reporting but supports either method To check your settings choose Edit menu gt Preferences gt Quicken Program In the Quicken Preferences dialog click Reports and Graphs To run cash basis reports make sure there is a check mark next to the box labeled Cash basis reporting if applicable To run accrual basis reports clear the check box Quicken 2005 3 Which chapters should you read The features you use depend on your business and the level of detail you want to track For information about this Refer to this chapter The standard cash flow features do most of the heavy lifting for tracking income and expenses To get started just set up accounts and categories relevant to your business If your business needs are simple you could read just this first chapter Accounts receivable invoices are all about income The biggest challenge for many small businesses is creating realistic estimates tracking jobs and following through with invoices to ensure timely payment If you use accrual basis bookkeeping you also need to track accounts payable A P or bills as they are received Even if you use cash basis bookkeeping an A P account can help you track cash flow and forecast expe
22. the payment Quicken updates the balance in your bills payables register and the account you chose to withdraw the payment from To see your current outstanding balance by vendor customize the accounts payable report Select Earliest to Date for the date range and then create the report You can also set up separate bills payables accounts for major vendors that you don t always pay in full You can set up alerts to remind you about past due bills To learn more about using Y a alerts choose Help menu gt Contents click the Index tab enter alerts and select overview of You can also schedule bill and payment transactions ahead of time and have Quicken remind you before they re due or record them for you For more information about scheduling transactions see Scheduling future transactions on page 45 To learn about Search the Help Index for paying bills online online payments overview of editing bills or payments bills from vendors editing deleting bills or payments bills from vendors deleting Receiving credit from a vendor Sometimes you receive credit from a vendor for returned goods or to compensate for a billing error A credit reduces the total amount of the bill To record this type of transaction use the Credit and Refund forms 1 Choose Business menu gt Go to Business Center 2 On the My Data tab in the Business Accounts snapshot in the A P Accounts Bills area click the account th
23. the upper right corner You can also open the Forms Designer by choosing Business menu gt Invoices and Estimates gt Design Forms 20 Managing accounts receivable invoices Filling out estimates and invoices Because you convert estimates directly to invoices the two forms look very similar and require you to fill in most of the same information such as the customer date and billing address You also enter details about the products and services you sell These are called invoice items in Quicken For more information about invoice items see Setting up items to include on invoices on page 16 If you have set up invoice items ahead of time Quicken helps you fill in the invoice When you create an estimate or invoice and begin typing the name of a product or service in the Item column Quicken checks to see if the item already exists If it does Quicken fills in all the item information for you including category rate description and whether or not the item is taxable If the item does not already exist Quicken asks if you want to create a new one and helps you set it up ii dlp Nev nem xi category to product sales Be su re to use a Item Name Number The Volunteer s PR Handbook ok category with the correct tax fo rm i ne Category Class Biz Gross Sales Cancel item assig ned to it in Description in house publication Help nonprofit edition this case Schedule C Gross Receipts or
24. un SBP Ww N Note After adding your new invoices receivables account you can enter any previously issued but unpaid invoices that you want to track Follow the steps in Creating an invoice on page 20 but remember to predate the invoice Setting up items to include on invoices What kinds of products or services do you include on invoices to customers Set up invoice items to reduce data entry and simplify your bidding and invoicing process You may set up an item for any of the following Products you sell e Hourly rate for services you provide set up an item for each service such as consulting writing or research e Discount rates and special charges such as surcharges or finance charges e Subtotals To set up a new item choose Business menu gt Invoices and Estimates gt Invoice Items Invoice items can include products Customize Invoice Items x or services _ Chris s Book of P Handbook of PR for small Pro Bono Discount discount rate for reaistere R h h informati d Hel Pa a TE Subtotal Subtotal preceding lines 5 Targeted Distribut to targeted consumer bus You can also set u p d iscount items Writing instructional research and write delive th at are u sed to cal cu ate Writing PR write press release does discounts on invoice items New Edit Delete 16 Managing accounts receivable invoices An invoice item represents any product y
25. you enter transactions When you enter a transaction for any of the products lines jobs clients or rental properties for which you have set up a class simply enter the transaction as usual in the account register but after you enter the category follow it with a forward slash and then type the name of the appropriate class When you make a payment or deposit income that applies to more than one product line or job you can split the transaction the same way you do with categories For example if you write a check for printing services for both the Rogers project and the Ellis project the split would look like this Identify the amount spent for each job by class Split Transaction Enter multiple categories to itemize this transaction use the Memo field to record more details Ig ce TS 2 Produstion E lls binding ae To learn more about entering classes choose Help menu gt Contents click the Index tab enter classes and select overview of See also Using classes for more detail on page 47 and Tracking expenses should you use classes or projects on page 22 14 Setting up Quicken for business use Managing accounts receivable invoices Adding an invoices receivables account 16 Setting up items to include on invoices 16 Tracking projects jobs 18 Creating an estimate 19 Creating an invoice 20 Recording a payment from a customer 27 Creating accounts receivable reports 29 You can use Qu
26. you want Quicken to include only amounts from your account registers or budget averaged over time Select Create Both to include scheduled transactions and items from your accounts payable and accounts receivable as well as amounts from your account registers or budget averaged over time 5 Inthe Create Estimated Amounts area select the appropriate option Select From Register Data if you want Quicken to include only amounts from your register Quicken includes the amounts in the registers that go with the selected accounts You can verify or change the selected accounts in step 6 Select From Budget Data if you want Quicken to include only amounts from your budget Quicken includes the amounts from the last budget you open 6 Toincludeonly certain accounts in your cash flow forecast click Accounts select the accounts you want and click OK For example you could select all your business related accounts Optional 7 To include only certain categories in your cash flow forecast click Categories select the categories you want and click OK For example you could select all your business related categories Optional 8 Inthe Advanced AutoCreate dialog click Done 9 Inthe Automatically Create Forecast window click OK If you make changes to your register budget or scheduled transaction list your changes are not included in your forecast until you update it In the Cash Flow Forecast window click Options and then s
27. 0 2004 fa 101 E dN H AnyTown Downtown Trust same _ Saye andew This Quicken user applied 123 Center Street a nonprofit discount for ArT cen OE aoe DUE DATE P O NUMBER Cancel her services She entered 5 30 2004 123456 Help her fees followed by a DESCRIPTION QTY RATE AMOUNT T subtotal item followed by 1 Bilablehour Business Cons hourly rate 24 75 00 1 800 00 her d iscount item see 2 Facilitation fee Business Other board retreat 1 200 00 200 00 Receive Pmt nee 3 Subtotal 2 000 00 Discounts special i 4 Nonprofit disc For 501 c agencies 15 00 300 00 Payment History charges and subtotals 5 PR Handbook Business Gross Sales item 3 35 00 105 00 T 6 Expenses on page 17 5 8 Next Edit 9 Print Subtotal 1 805 00 Saree Tax 7750 8 14 1813 14 Tax Account Sales Tax bd Balance Due Customer Message It s been a pleasure working with youl Total Memo 1 813 14 Items following the discount item are full price This item is taxable You can use the Forms Designer described on page 25 to design the invoice to include only the fields and columns you need You can also rename or resize the fields and columns reposition the fields and your company logo and display your company address To open the Forms Designer from the Invoice form choose Customize from the Layout list in
28. 1 capital gains 51 cash or accrual 3 42 cash receipts and disbursements 42 comparison 42 customer payment history 30 customer sales 32 depreciation 59 expenses for a single class 49 expenses for all classes 48 forecast cash flow 46 income for a single class 49 income for all classes 48 income for all projects jobs 47 income statement 55 investment income 51 profit and loss statement 55 project job 48 project job by project 47 saving 31 sources and usesof cash 43 tax schedule 51 taxsummary 51 tax related 51 unpaid balances by customer 29 using categories for 12 when borrowing money 61 resources in Quicken 69 Intuit s web site 68 onthe Internet 70 small business owners 70 retainers 27 returns issuing credit 28 RISEbusiness 70 S sales by customer report 32 sales forms See estimates sales forms See invoices sales tax accounts 25 and categories 21 rates 21 tracking 24 saving reports 31 SBA s Business Information Centers BICs 70 scheduling transactions 45 selling fixed assets 59 Quicken 2005 74 Service Corps of Retired Executives SCORE 70 U services adding to the item list 17 setting up undeposited checks handling 28 Quicken datafile 6 unpaid balance report 29 Quicken to track abusiness 6 8 unpaid bills Small Business Administration SBA 70 alerts 39 Small Business Development Centers 70 reporting on 44 sole proprietorship calculating equity for 62 unpaid invoice list 31 sources and uses of ca
29. 4 5 3 2004 Customer Inv 100 TOTAL 5 2 2004 5 8 2004 0 00 2 260 25 2 260 25 w Center City Aff 5plt BALANCE 5 8 2004 5 10 2004 Customer Inv 101 w AnyTown Pasta Split If you move your pointer over report totals with details available the pointer turns into a magnifying glass 5 14 2004 Customer Inv Business Ch c TOTAL 5 9 2004 5 15 2004 AnyTown Pasta Double click to zoom in on the details BALANCE 5 15 2004 5 17 2004 Customer Inv TOTAL 5 16 2004 5 22 2004 Center City Aff Business Ch c BALANCE 5 22 2004 TOTAL 5 23 2004 5 29 2004 BALANCE 5 29 2004 TOTAL 5 30 2004 5 31 2004 BALANCE 5 31 2004 OVERALL TOTAL 760 00 TOTAL INFLOWS 5 700 25 TOTAL OUTFLOWS 4 940 25 NET TOTAL 760 00 10 Click Save Report type a unique name for the report select Business Center or Cash Flow Center depending on the center you want to access the report from type an optional description and click OK Optional Quicken adds a link for the report to the My Reports area of the center you specify Displaying a list of unpaid invoices Unpaid invoices are listed in the Unpaid Invoices window Choose Business menu gt Go to Business Center On the My Data tab in the Accounts Receivable snapshot click Show Full List Quicken shows you the amount of each invoice the balance aging information an
30. Analysis amp Reports tab Links to small business Web sites Analysis amp Reports tab e Links to other business tools and services such as business planning information about running a business or receiving payments online My Data tab and Analysis amp Reports tab Quicken some ye Customer Inv 1 850 73 Business Bills 2 992 90 Sales Tax 2 48 Business Chec 19 250 04 Co Checking 1 382 00 Business Credi 678 30 24 794 89 Bom un y Cash Flow Center we Quicken Credit Card 102 00 102 00 A P Accounts Bills E Ping mite te M Legal Prot Fees a Tan nms aan 21 Show Full Graph Show Expense Report v Investing Center Chris s Broker 59 150 70 Tracking profitability Quicken provides many ways to measure the health of your business track profitability calculate equity Two of the most important reports for gauging the profitability of your business are the profit and loss statement also called an income statement and the balance sheet These are the reports most often requested by CPAs and financial officers for example banks request both documents when you apply for a loan For information about the balance sheet see Creating a balance sheet on page 61 54 Tracking profitability and calculating equity Creating a profit and loss statement P amp L A profit and loss statement also called an income st
31. Biz Telephone Bus monthly bill A transaction with 27 15 2004 Business Credit Card 100 00 5 674 34 multiple categories Business Credit Card 2 16 2004 AD Miller s Office Barn 105 00 Deposit 5 574 34 Split Mix eno Exp Enter Edit Split fe x Enter multiple categories to itemize this transaction use the Memo field to record more details 1 BizAdvertising 60 00 2 Biz Dues And Subsctiptions 45 00 Click the Split button and then enter multiple categories in the Split Transaction dialog Note To learn more about entering transactions and assigning categories see the other user manual that comes with Quicken Premier Home amp Business Getting Started with Quicken Choose Help menu gt User Manuals For information about changing category options choose Help menu gt Contents click the Index tab and enter classes overview of 12 Setting up Quicken for business use Setting up classes Categories help identify your business s income and expenses But what if you have several customers each of whom is a source of income in the Gross Sales income category which one is the most lucrative customer over the course of a year Or what if you have several projects with the same expense category say Materials and Supplies which has the highest startup cost Use classes if you need to Track the same income or expense category for multiple jobs clients or projects e Track the same income or expense category f
32. Customize In the Date Range fields enter the same date range as for the accounts payable summary report On the Display tab in the Subtotal By list select Payee XN oO uw A W N Click the Accounts tab and check to make sure the bills payables account is the only one included in the report e Ifyou have only business accounts click Clear All and then select only your bills payables accounts e Ifyou have several types of accounts click All Accounts on the left and then click Clear All Next click Business on the left and select only your bills payables accounts 8 Click the Advanced tab 9 Inthe Status area select Not Cleared status and Newly Cleared status 10 Click Show Report Planning and forecasting your cash flow Quicken doesn t just track where your money s been going It also gives you a clear picture of your financial future You can schedule future transactions look at them on the Financial Calendar to see what s coming up create graphs to see a picture of your future finances and create reports to look at the details in a more focused way 44 Managing cash flow income and expenses Scheduling future transactions You can schedule one time transactions such as a new piece of equipment that you plan to pay for later or recurring transactions that you invoice or pay at the same time every month such as office rent After you schedule a transaction Quicken either reminds you when it s due or records i
33. Sales see Setti ng up IT Subtotal of the Preceding Items business categories on I Print Extra Blank Line page 8 Per Item Rate 80 00 Pei able When you add taxable items such as products to an invoice Quicken prompts you for your local sales tax rate I Percentage T Inactive In addition to using items to fill out estimates and invoices more quickly Quicken uses items to track customer charges and your income in more detail Use the Item column to add this detail rather than adding numerous income categories For example because Pat s interior design business sells more items than she wants to add to her Category List she could have one income category called Design Services and another called Product Sales She could assign all of the items she sells to customers pillows display shelves mirrors and so on to the Product Sales income category and assign the services she provides design consulting sketches and so on to the Design Services category When she later creates a profit and loss statement Quicken reports the income from Product Sales separately from the income from Design Services Keep sales tax reporting in mind when you set up categories Figure out which information you need to report to your sales tax authority so that you ll get the information you need from the Quicken reports you create To learn about Search the Help Index for tracking accounts receivable acc
34. a completed Convert Estimate to Invoice dialog Select the account in which you want the invoice to appear Customer AnyTown Downtown Lox Project Job Fundraiser cance Indicate whether you want e l T to save this estimate for N j Ho convert it to the following account later use or delete it from the Estimate List After conversion Save this estimate for later use Delete this estimate from the list Note Quicken tracks your estimates in the Estimate List and your accounts receivable in the invoices account register Creating an invoice When a customer owes you money you can create a Quicken invoice that itemizes the products or services they bought from you You can then either print the invoice to send to the customer or e mail the invoice Quicken updates your invoices receivables register to show the increase Create a new invoice in the Invoice form Choose Business menu gt Go to Business Center On the My Data tab in the Accounts Receivable snapshot click Create an Invoice If you have more than one invoices receivables account Quicken will prompt you for which one you want to use to track this invoice Here s an example of a completed invoice using the preset format In the Item column xi choose an existing item Customer AryTown Downtown Trust ProjectiJob Fundraiser Layout Invoice Defaut z from your invoice items list or create a new one 4 3
35. a line item from the Schedule C tax form If Quicken is not displaying tax line information in the Category List click the Display tax information check box at the top of the Category List window To see just the tax related categories in the Category List select Tax related categories in the Show field in the upper left corner of the Category List window To make it easier to find the category you want when you are in the checking account register set up a parent category with a brief but descriptive name such as Biz or Rentals Then put all your business related categories underneath it using them as subcategories To learn more about demoting or promoting subcategories under a parent category choose Help menu gt Contents click the Index tab enter categories and select editing Click Display tax information to see tax item Category List Go to Recategorize Show raxrelated categories gt M Display tax information A Select the type of information in categories you the Category List g y Category Hide Description Tax Tax Line Item want to seein the Biz i ra A Show list et Bad Debt Name Ads OK Car Description Tancel nd truck ex Commission Group E missions and Discounts oe rns and allo Dues and Subscription e hase r business e Employee Benefit Bus Eypense M Spending is not discretionary oyee benefit Insurance Bus O BE g rance other I
36. an invoices receivables account 16 Setting up items to include on invoices 16 Tracking projects jobs 18 Creating an estimate 19 Creating an invoice 20 Recording a payment from a customer 27 Creating accounts receivable reports 29 Managing accounts payable bills 35 Tracking bills with a bills payables account 36 Adding a bills payables account 36 Recording a bill 36 Paying a bill 37 Managing cash flow income and expenses 41 Using reports to understand cash flow 42 Planning and forecasting your cash flow 44 Reporting on projects and jobs 47 Preparing for business income taxes 51 Chapter 6 Chapter 7 Contents Tracking profitability and calculating equity 53 Using the Business Center 54 Tracking profitability 54 Creating a profit and loss statement P amp L 55 Tracking current assets 56 Tracking fixed assets and depreciation 57 Liabilities 61 Creating a balance sheet 61 Calculating equity 62 Resources for growing your business 65 Using QuickPayroll with Quicken 66 What can QuickPayroll do 66 Trying QuickPayroll for free 67 How QuickPayroll works with Quicken 67 Quicken com resources 68 Quicken business resources 69 Other business resources 70 Getting started with Quicken How good record keeping benefits your business 2 Which bookkeeping method should you use 3 Which chapters should you read 4 Quicken Premier Home amp Business is designed to help you track almost all aspects of small b
37. arn how to avoid common record keeping mistakes If you need to learn more about account setup and basic Quicken functionality see the other user manual that comes with Quicken Premier Home amp Business Getting Started with Quicken You can find an electronic copy on your computer hard drive choose Help menu gt User Manuals Which accounts will you need Accounts and categories in Quicken are equivalent to the traditional chart of accounts used for tracking income expenses assets and liabilities Set up a Quicken account for each real world account your business uses such as a checking or credit card account Quicken also uses accounts receivable invoices accounts payable bills fixed assets and loans You will probably need some combination of the following accounts To track this Add this Quicken account type Income and expenses Accounts receivable invoices you send to customers for payment Accounts payable bills you pay Sales tax Assets and liabilities Add a Quicken account for each real world checking account or credit card See Add business and personal accounts in one data file on page 7 When you enter income or expense transactions use Quicken categories to get the most from reporting tracking and analysis tools See Setting up business categories on page 8 Add one invoice receivables account for each business you track in this data file See Chapter 3 Managing a
38. at contains the bill 3 Inthe toolbar in the Create New list select Credit 4 Inthe Vendor field enter the name of the vendor 5 To associate a project job with the credit click Assign Project J ob select the appropriate project job and click OK Optional 6 Inthe Category column select an expense category 7 Inthe AMOUNT column enter the amount of the credit 8 Click Enter Quicken enters the credit in the bills payables register Quicken 2005 39 If the credit was a refund fill out a Refund form to record the deposit into your bank account Use the Refund form only if you have already entered an associated credit 1 2 YN oO wu A wW 9 Choose Business menu gt Go to Business Center On the My Data tab in the Business Accounts snapshot in the A P Accounts Bills area click the account that contains the bill In the toolbar in the Create New list select Refund In the Account to Deposit To field select the account into which you want to deposit the refund In the Vendor field enter the name of the vendor Click Address if you want to enter an address for this vendor Optional In the DATE field Quicken displays today s date by default You can manually enter a different date if necessary Optional To associate a project job with the credit click Assign Project J ob select the appropriate project job and click OK Optional In the Amount field enter the amount of the refund 10 Inthe Mem
39. atement shows your income expenses and net profit or loss equal to income minus expenses The profit and loss statement summarizes the revenue and expenses of your business by category first income then expenses To summarize profits and losses for your business you can create a profit and loss statement whether you use cash or accrual basis bookkeeping For details on these bookkeeping methods see Which bookkeeping method should you use on page 3 To create a profit and loss statement Choose Business menu gt Go to Business Center On the Analysis amp Reports tab in My Reports click Show Other Reports In the Select a report list on the right select Profit amp Loss Statement Click Customize In the Date Range fields set the date range to cover the period you want O UU A W N Be The report default is for cash basis bookkeeping If you use accrual basis bookkeeping click the Advanced tab and then in the Report Basis area select Accrual If you run your business using accrual basis bookkeeping you want your income to show up when you issue invoices not when you receive payment This report option includes income for which you ve submitted invoices but haven t yet been paid and expenses for which you ve been billed but haven t yet paid amp Customize Profit amp Loss Statement x If you use accrual basis accounting Date Range Custom Date z fom 7172004 m tw 5200 a choose Accrual as t
40. billing customers See invoices bills scheduling 45 bills payables See accounts payable bookkeeping cash or accrual 3 borrowing money 61 Business Center overview 54 business development Service Corps of Retired Executives SCORE 70 Small Business Development Centers 70 Small Business Information Centers 70 business finances separating business from personal 7 business owners calculating equity 62 business plan purpose 69 tools 69 business products overview 65 C canceled orders 28 capital gains reports 51 cash flow forecasting 46 cash receipts reporting on 42 71 cash sales tracking 28 cash basis accounting 3 categories assigning to transactions 12 tax related 51 tracking income and expense 8 chart of accounts 6 checking account setting up for business use 7 classes assigning to transactions 14 itemizing transactions 50 overview 13 tracking clients 22 tracking projects jobs 22 using for invoicing 47 clients tracking with classes 22 tracking with the Project J ob List 22 columns renaming 25 comparison report 42 corporation calculating equity for 63 credit from vendor 39 credit memos issuing acredit 28 issuing arefund 28 layout 25 credit to customer for returned goods 28 current assets defined 56 customer payments handling partial payments 27 tracking 27 customer sales report 32 customizing forms See designing forms D data file setting up for business 6 depreciation example 57
41. ccounts receivable invoices You can also set up an invoice item for any product or service you include on your invoices See Setting up items to include on invoices on page 16 Add one bills payables account for each business you track in this data file See Chapter 4 Managing accounts payable bills Quicken adds a sales tax account for you when you add an invoices receivables account If you do business in more than one tax district you may need to add more See Tracking and paying sales tax on page 24 Add an asset account for capital equipment you intend to depreciate See Tracking fixed assets and depreciation on page 57 Add an amortized loan to track the principal interest and payment schedule for money you owe see Recording a new loan on page 61 Keeping business and personal data separate Think about how you want to track your finances especially your checking and credit card accounts The IRS advises business owners to keep business transactions completely separate from personal transactions You can handle this three different ways in Quicken Add personal and business accounts in one data file and then track both home and business finances in the same file Be sure that your business checking credit card and other accounts are used solely for your business This lets you track all your finances in one place and do tax planning for both employment and self employment income Use the p
42. d the total amount of all your unpaid invoices Double click a customer name to see the invoice details Creating alerts for past due invoices Alerts keep you informed about financial events you might otherwise forget such as past due invoices You can set the Past Due Invoice alert to notify you when an invoice has not been completely paid by the due date specified on the invoice When an invoice becomes past due Quicken notifies you in the Alerts section of the Quicken Home page and Business Center To create a reminder for past due invoices 1 Choose Business menu gt Go to Business Center 2 On the My Data tab in the Business Alerts snapshot click Set Up Alerts 3 On the Setup tab in the General area select the Past Due Invoices check box to activate the alert A check mark next to the alert means that the alert is active click the check box again if you want to clear it 4 Click OK To learn more about alerts choose Help menu gt Contents click the Index tab enter alerts and select overview of Quicken 2005 31 Reporting on sales by customer This report summarizes your sales income from each customer during the date range of the report To create it you customize the summary report to look at only sales income ignoring payments and sales tax collected Choose Cash Flow menu gt Go to Cash Flow Center On the Analysis amp Reports tab in My Reports click Show Other Reports In the Select a report list on th
43. e C Interest expense Office I office Schedule C Office expenses i Pension and P 7 Pension and Profit Shari Schedule C Pension profit sh Postage and Postage and Delivery Schedule C Other business e Printing and R T Printing and Reproduction Schedule C Other business e I pant an Faniin FZ Srhadola C Dant lazca wahiel 2 t Edit Delete Merge FullReport ed 10 Setting up Quicken for business use Creating your own categories You can customize your categories to track tax related income and expenses for different kinds of businesses The next two sections describe how Categories for rental property owners If you followed Quicken Guided Setup after you installed Quicken then you were prompted for whether you own rental property If you clicked Yes then Quicken added rental property categories for you If you did not have Quicken add these categories for you or you want to add additional categories you can set up more at any time from the Category List 1 Choose Tools menu gt Category List Quicken displays the Category List window 2 Inthe bottom left corner click New Quicken displays the Set Up Category dialog 3 Inthe Name field type a name 4 Inthe Type area specify whether you will use the category for income or expense transactions Examples are Rents received Cleaning and maintenance Commissions Insurance Management fees Mortgage interest ex
44. e right select Banking Summary Click Customize In the Title field type a name such as Sales by Customer In the Date Range fields set the date range to cover the period you want y oO WU A W N F amp F Click the Accounts tab and select only your invoices receivables accounts e Ifyou have only business accounts click Clear All and then select only your invoices accounts e Ifyou have several types of accounts click All Accounts on the left and then click Clear All Next click Business on the left and select only your invoices accounts 8 Click the Advanced tab 9 Inthe Transfers list select Exclude All The amounts shown in the report do not include sales tax or any other items that are transfers to another Quicken account 10 Click Show Report 32 Managing accounts receivable invoices Creating customer reminder statements After creating an accounts receivable report you may find it useful to create reminder statements for some of your customers A customer reminder statement summarizes a customer s account with your company It lists recent invoices credit memos payments received and finance charges Use reminder statements when you use invoices to bill your customers and want to remind them about late payments To create the reminder statement Quicken uses the information you have already entered so you don t have to do any new work Review the information that appears on the statement and print it
45. e to the customer or e mail it If your customer accepts your estimate you can convert it to an invoice when it comes time to send the bill Quicken tracks your estimates in an Estimate List Note that estimates unlike invoices do not affect your financial statement because there is no guarantee that the transaction will actually take place They do appear on the Project J ob List so you should assign an estimate to its specific project job when you convert the estimate to an invoice it will be added to the list for that project job To create a new estimate click New in the Estimate List Choose Business menu gt Go to Business Center and click the Analysis amp Reports tab In Tools click Estimate List Here s an example of a completed estimate lx Estimate Customer fnyTown Downtown T Project Job Fundraiser L Layout Estimate Default X Choose a customer pa i Seve and Dore stimate 4 4 2004 fe 101 and project from lists Save and New AnyTown Downtown Trust 123 Center Street Quicken fills in the AryToum OH 43085 Cancel customer information iE from your Customer Category DESCRIPTION QTY RATE AMOUNT List 1 Billable hour Business Cons hourly rate 36 75 00 270000 2 Facilitation fee Business Other Flat fee 1 200 00 200 00 7 i i 3 Subtotal 2 900 00 Enter invoice items 4 Nonprofit disc For 501 c agencies 15 00 435 00 here To create a new
46. e writer can use projects jobs to invoice his client for consecutive writing assignments or a plumbing subcontractor can use them to track jobs for a general contractor A single project job may have a history that includes an estimate and several invoices plus payments and possibly bills for reimbursable expenses Here are more examples of when you might use projects jobs e If you manage several apartment buildings set up the building addresses as customers and the individual apartments as projects jobs e Ifyou invoice against purchase orders set up each purchase order number as a project job e Ifyou have a practice or organization that sends one statement to a family to cover individual members of the family set up the family as the customer and family members as projects jobs Quicken tracks your projects jobs using the Project J ob List which includes the job status important dates and ending balance of invoices and payments amp Project Job List ioj gt New Edit Delete Sortw Print Options How Do I Customer lt ai gt sd J Select account lt All Accounts gt Customer Project Job Status Start Date Proj End ActualEnd Description Total AnyTown Past lt j Publicize Grand In Progress 1 1 2004 1 4 2005 new manage 13 760 004 Estimate 101 ia Invoice 101 3 440 00 Payment 101 1 000 00 Payment 102 2 440 00 Invoice 3 440 00 Invoice 3 440 00 Invoice 3 440 00 Invoice 3 440 00 You ll learn how to crea
47. ects jobs see Tracking projects jobs on page 18 e Using classes takes more time but it gives you more information in your reports You need to assign classes to all your expense transactions and to get a complete picture of a particular project job you should assign classes to all your income transactions as well For more information about using classes to create detailed Quicken reports see Using classes for more detail on page 47 To learn about assigning classes to transactions see Setting up business categories on page 8 Invoicing a customer for reimbursable expenses Many business owners especially consultants incur expenses on behalf of customers while working on projects These expenses items such as delivery fees and travel expenses are called reimbursable expenses You can select these expenses as reimbursable when you enter them in Quicken Then when you invoice a customer you can have Quicken display a list of reimbursable expenses and you can select which ones you want to include on the invoice Whenever you enter a reimbursable expense in Quicken for example in your Quicken checking account register credit card account register or bills register you can click the Exp field to identify that transaction as a reimbursable expense If only part of the transaction is reimbursable you can identify the appropriate line in the Split Transaction dialog or the Bill form Quicken displays an E to show that t
48. elect Update Forecast 46 Managing cash flow income and expenses Q Cash Flow Forecast Base Scenario lof x Print Options How Dolw Account Balances E Balance 3 2004 to 2 2005 Past Balino in thousands 10 oo 8 A ps aay 7 Select Accounts to Include x 4 Account Type Description A oe Business Checking Bank Joint Checking Bank Banc o Customer Invoices Asset Sizoo4 442004 542004 642004 742004 o Business Credit Card Credit Help Sales Tax Liab Future Finar eo Business Loan Liab r Events on Graph One year F amp show at ite lt lt Prev Next gt gt Annual One time Clear All M Show Hidden Accounts Reporting on projects and jobs Summarizing all projects jobs If you use the Project J ob List you can create a summary report of your income and expenses broken down by payee and project Choose Reports menu gt Business gt Project ob Report by Project For more information about the Project J ob List see Tracking projects jobs on page 18 Using classes for more detail If you are using the project job feature you can create a summary report of your project income and expenses If you are willing to do a little more work you can add transaction level detail to your project reports Classes complement the Quicken categories and like categories you assign them to individual transactions To learn how see Using classes when you enter tran
49. er the account from which you want to pay the refund 7 Enter any additional information you want to include and then click Enter 28 Managing accounts receivable invoices 8 In the invoices register select the credit and click Form Quicken displays the Credit form 9 Click Receive Pmt Quicken displays the Customer Payment form showing the amount of the credit and displaying a check mark next to the refund to which the credit will be applied If there are several refunds select the correct one by clicking in the Pay column next to it 10 Click Enter To issue a refund for overpayment 1 Choose Business menu gt Go to Business Center 2 On the My Data tab in the Business Accounts snapshot in the A R Accounts Invoices area click the account that contains the invoice In the toolbar in the Create New list select Refund In the Account to Pay From field enter the account from which you want to pay the refund In the Customer field select the customer name In the Amount field enter the refund amount Enter any additional information you want to include and then click Enter o N ono uw A W In the invoices register select the payment and click Form Quicken displays the Customer Payment form which lists the invoices and the refund 9 Click the Pay column next to the Date column and then click Enter To learn more about using online payments to issue a refund choose Help menu gt Contents click the Index tab
50. es and more Note Always confirm your choices by consulting with your accountant or tax professional For more information visit the small business and self employment pages of the IRS Web site Choose Business menu gt Go to Business Center and click the Analysis amp Reports tab In Internet Resources click IRS Small Business Center Also visit http turbotax com select Tips amp Resources and then select For Small Businesses To learn about Search the Help Index for tracking tax related expenses and assigning tax categories tax related transactions schedule information to categories double checking the tax form information you Tax Category Audit assigned to categories handling transfers between farm enterprises farm finances transfers between enterprises Using categories when you enter transactions To get meaningful data from the tracking reporting and analysis tools assign a category to every income or expense transaction you enter You can assign a single category to a transaction or divide up the transaction among multiple categories this is called a split transaction Atransaction witha single category Business Checking Register elete Find Transfer Reconcile Write Checks Set Up Online View Report Options How Do I A transfer Date A Payee Payment Clr Deposit Balance transact i on E Category Memo Exp 2 9 2004 AnyTown Bell 100 00 5 774 34 N
51. es are in compliance with changing federal and state payroll tax withholding rates For information about using the free trial version see Trying QuickPayroll for free on page 67 See the QuickPayroll Web site for a product demo and more information including how to subscribe Annual subscription fees apply Go to www intuit com quickpayroll You must have Internet access to use QuickPayroll QuickPayroll does not work with QuickBooks which has its own integrated subscription based payroll service If you have an older version of QuickBooks without integrated payroll visit the QuickBooks Web site at www quickbooks com payroll for more information What can QuickPayroll do QuickPayroll performs the following payroll tasks for you e Calculates wages for each pay period e Calculates federal state and local taxes for the United States of America including the District of Columbia and Puerto Rico QuickPayroll does not calculate taxes for Guam the Virgin Islands American Samoa or Canada e Creates your payroll checks with earnings deductions and year to date detail provided on the voucher if you use voucher checks or on a separate pay stub that is automatically created and can be printed for your employees e Lets you pay employees on a daily weekly biweekly monthly semimonthly quarterly or yearly basis e Handles many kinds of compensation salary hourly including overtime commission or a combination e
52. et up classes For more information see Setting up classes on page 13 10 Click Show Report When you filter a report by class Quicken includes only the transactions to which you assigned that class The report shows all transactions for the class even if the transactions have different subclasses Here s an example of summary report that shows income and expenses for a single class Banking Summary _ oj x Delete Export Data v Preferences How Do I a Date Range Custom Date Column Month l Save Report Customize m Banking Summa Report History g y eee ame 3anking Summary Eee as 3 1 2004 4112004 OVERALL Category Description 3 31 2004 4 30 2004 TOTAL INCOME Rents Received 3 300 00 3 000 00 6 300 00 TOTAL INCOME 3 300 00 3 000 00 6 300 00 EXPENSES Biz Legal Prof Fees 400 00 0 00 400 00 TOTAL Biz 400 00 0 00 400 00 Rental Expenses Cleaning and Maintenance 400 00 350 00 750 00 Management Fees 400 00 0 00 400 00 Mortgage Interest Expense 0 00 400 00 400 00 Taxes 0 00 1 200 00 1 200 00 TOTAL Rental Expenses 800 00 1 950 00 2 750 00 TOTAL EXPENSES 1 200 00 1 950 00 3 150 00 OVERALL TOTAL 2 100 00 1 050 00 3 150 00 Quicken 2005 49 Create a payment history for a single class oOo uN FP W N Be 8 9 Choose Cash Flow menu gt Go to Cash Flow Center On the Analysis amp Reports tab in My Reports click Show Other Reports In the Select a report list on the righ
53. expense category 11 In the DESCRIPTION column enter a description of the service or item Optional 12 Inthe E column click if this is an expensable item that you want to include on a customer invoice Optional 13 Inthe AMOUNT column enter the amount If this bill is for expenses incurred fora aeons O xl proj ect orjo clic Customer AnyTown Project Job Fundraiser Assign Project Job Assign Project J ob pepese and then assign it to aes Click in the E column to one from your as identify an expense as Project ob List ES a reimbursable DESORPTION E AMOUNT DESCRIPTION 1 Printing Promo Package 2 Mailing Invitations 3 Next Editw Enter a business expense category for each item on the bill 14 Click the appropriate button Save and Done records the bill transaction in the bills register Save and New records the bill transaction in the bills register and lets you record another bill e Create Payment opens a payment dialog where you can record the payment transaction in the register right now Select this option only if you want to record bills and payments at the same time Continue with Paying a bill in the next section starting with step 9 To learn about Search the Help Index for paying vendors bills from vendors paying scheduled transactions scheduled transactions overview of reimbursable expenses reimbursable expenses Paying a bill Quic
54. g cash flow A company can receive cash from sources other than accounts receivable It can also receive cash from loans investments in the company or interest income If you enter both your expected payments and deposits in Quicken you can forecast your cash flow as far into the future as you can predict deposits and payments Forecasting cash flow lets you predict cash surpluses helping you decide if you can handle new expenses or if you should invest the surplus for highest return Forecasting also predicts impending cash deficits so you can slow your payables borrow or take action to generate more cash Forecasting works best if your receipt of funds is fairly predictable To forecast cash flow 1 Choose Planning menu gt Cash Flow Forecast Quicken displays the Automatically Create Forecast dialog 2 Inthe From and To fields enter a historic range for which you want Quicken to look for your cash flow forecast amounts 3 Select the appropriate option e To create a forecast with the default settings in the Automatically Create Forecast window click OK e To create a more specialized forecast click Advanced to open the Advanced AutoCreate dialog and continue with step 4 Optional 4 In the Forecast Items to Create area select the appropriate option Select Known Items if you want Quicken to include only scheduled transactions and items from your accounts payable and accounts receivable Select Estimated Items if
55. ge until it is the size you want and then release the mouse button b To move a field select the field and move the pointer inside it When the pointer changes to a four sided arrow hold the left mouse key down move the field to the location you want and then release the mouse button Quicken 2005 25 You can add your own Forms Designer Estimate Default iol x logo in bitmap format a Layout Item v Zoom v graphics file with a name ending in BMP Options How Do I Introduction Estimate S Estimate Layout Choose the estimate or TA Title Sample invoice fields you want to E Bill to Address Sample Customer include s Eza 3 30 2004 Click and drag to change Seen the size or location of a r 412912004 fi el d SHIP TO DESCRIPTION er RA fl 5 To check your changes right click the document and select Print from the menu and then click Preview To learn about layouts choose Help menu gt Contents click the Index tab enter invoices and select designing or enter estimates and select overview of E mailing estimates invoices and credit memos If your e mail program is MAPI compliant you can send an estimate an invoice or a credit memo as an e mail attachment or as the message text in the body of the e mail itself When you send a form by e mail Quicken formats it as HTML or text When correctly installed all U S versions of the following programs are MAPI compliant M
56. he Report Basis Advanced Transactions Status Amounts All 7 VV Not cleared IT Include unrealized gains E Neny cleared I Tax telated transactions only Transaction types an Transactions z Transfers Exclude All z Pertas C Accrual Subcategories Show All z Cash Casi Show Report Cancel Help VV Reconciled Quicken 2005 55 7 Click Show Report The following is an example of a profit and loss income statement Li 21513 Export Data v Go to Category List Preferences How Do I a Date Range Year to date v Column Don t subtotal X Save Report Customize Print Report History Profit amp Loss Statement YTD 1 1 2004 Through 5 17 2004 Cash Basis 1 1 2003 Category Description 7 16 2003 INCOME Rents Received 15 400 00 TOTAL INCOME 15 400 00 EXPENSES Rental Expenses Cleaning and Maintenance 846 00 Legal Prof Fees Q 600 00 Mortgage Interest Expense 3 000 00 Repairs 1 200 00 Taxes 4 000 00 TOTAL Rental Expenses 9 646 00 TOTAL EXPENSES 9 646 00 OVERALL TOTAL 5 754 00 Tracking current assets Current assets are those assets likely to be converted to cash within one year They include such assets as bank accounts accounts receivable and cash Tracking bank accounts Add a checking savings or money market account in Quicken to track each of your business s bank accounts If you have a petty cash fund you can add a cash accou
57. hen you do the Amount column displays the individual payment amount entered into Quicken each time If you select all the payments in the Pay column the Amount column shows the total for all the selected payments instead of the individual payment amount and this larger amount is what is entered into Quicken each time 7 When you have finished creating the invoice payment or bill you want to schedule click OK Quicken returns you to the Create Scheduled Transaction dialog and fills in the vendor customer information amount and category fields 8 Inthe Scheduling area enter the start date frequency and end date for the scheduled transaction Click Help for more information 9 Click OK to set up the scheduled transaction Note that transactions scheduled later than today are not entered in your register until the specified time You can view the scheduled transactions for all accounts in the Scheduled Transaction List choose Tools menu gt Scheduled Transaction List If you told Quicken to remind you to enter a scheduled transaction when it s due when the time comes to enter the scheduled transaction into the register Quicken places a reminder about the scheduled transaction in the Scheduled Transactions tab at the bottom of the appropriate register To learn more about scheduling transactions choose Help menu gt Contents click the Index tab enter scheduled transactions and select overview of Quicken 2005 45 Forecastin
58. hen you receive payment for expenses For accrual basis reporting income is recognized when you bill the customer These expenses s have not yet Choose Reimbursable Expenses x been invoiced Date P F ayee Memo Amount Hide 3 22 2004 USPS mailing promo 50 00 Select this check 3 30 2004 Molotsi s Copy Center reimbursable expense 300 00 box to combine ne expenses Select this check Total 0 00 box if the expense is for a DM Print selected expenses as one invoice item taxable item IV Selected expenses are taxable To learn about Search the Help Index for tracking reimbursable expenses reimbursable expenses applying markup markup item on invoices Quicken 2005 23 Tracking items bought for resale When you buy items or materials that become the products you sell you re usually in one of three general situations e You invoice customers for items or materials purchased on their behalf You buy for a particular customer or job and you invoice for those items with or without markup or sales tax For example an interior designer may buy furniture at wholesale and sell it to the client at retail For this situation see Invoicing a customer for reimbursable expenses on page 22 e You neither maintain inventory nor invoice customers for specific items purchased on their behalf You buy items or materials for resale in the immediate future If you buy items for a particular customer or job you don t invoice for t
59. his is an expense for which you plan to invoice a customer You can also enter a description of the expense in the Memo field This is then used as the description on the invoice 22 Managing accounts receivable invoices Click the Exp field to mark your expenses as reimbursable Quicken makes them available later to include on an invoice Business Checking Register Delete Find Transfer Reconcile write Checks Set Up Online View Reporte Options How Do I Date A Num Payee Payment Clr Deposit Balance Category Memo Exp 3 16 2004 Miller s Office Barn 100 00 5 118 87 Biz Supplies laser toner pap r files desl 3 17 2004 Center City Small Business Journal 245 00 4 873 87 Split panel advt 3 22 2004 USPS 50 00 4 823 87 Biz Postage and Delivery mailing promo E 3 30 2004 Molotsi s Copy Center 300 00 4 523 87 Biz Printing and Reproductior reimbursable expense E When you re ready to invoice the customer click Expenses in the Invoice form To open the Invoice form choose Business menu gt Go to Business Center On the My Data tab in the Accounts Receivable snapshot click Create an Invoice Quicken shows you a list of reimbursable expenses not yet invoiced To include an expense on the invoice click the Use field next to the reimbursable expense and click OK If you add a markup change the amount on the invoice For cash basis reporting reimbursable expenses are recorded as income w
60. hose items separately from other charges For example a caterer may buy food for an event but invoice for a general price per person without separating food costs from labor Ora custom furniture maker may buy wood fora commissioned job but sell the finished piece for a price that includes materials and labor If this is your situation you can use one or more expense accounts for the items and materials you buy for resale When you enter a bill or credit card or check in Quicken for the purchase of resale goods simply choose the appropriate expense category in the Category field Make sure you include shipping charges and any sales tax you pay in the amount of the transaction Those charges are part of your cost of resale goods e You maintain inventory You buy items or materials and hold them in inventory until they sell If this is your situation you should purchase QuickBooks QuickBooks tracks the value of your inventory and keeps an up to date count of the number of items in stock For details see Chapter 7 Resources for growing your business Tracking and paying sales tax If you sell products you probably collect sales taxes from customers which you must later pay to a government agency Quicken lets you add the appropriate sales tax directly to your customer invoices and it records the taxes you ve collected in a liability account called Sales Tax Quicken adds this account when you add your first invoices receivables account
61. icken to track estimates invoices and payments you don t need a separate program You can also customize these documents for your business If you use accrual basis bookkeeping you must track your accounts receivable invoices and payments in a Quicken invoice account Invoices are considered an asset even if you haven t received the funds yet because they represent monies owed to your company Even if you use cash basis bookkeeping an invoices receivables account can help you track cash flow and forecast income 15 Use an invoices receivables account to help you track amounts your customers owe you The process works like this e Add anew Quicken invoices receivables account Setup invoice items for the products and services you sell Set up the projects you want to track e Create estimates in the Estimate form e Create invoices in the Invoice form E mail estimates and invoices to customers e Record customer payments Quicken matches payments to the corresponding project job or invoice Adding an invoices receivables account Before you can create invoices you ll need a Quicken invoices receivables account in which to track accounts receivable 1 Choose Business menu gt Go to Business Center On the My Data tab in the Business Accounts snapshot click Add Account Select Invoices Receivables and click Next In the Name this account field enter a name for the account and then click Next Click Done
62. icrosoft Outlook Outlook Express Eudora Pegasus Netscape Messenger Yahoo and Hotmail 1 Display the form you want to send 2 Inthe form dialog click E mail Clipboard 3 Inthe Format area choose a format supported by your e mail program HTML Recommended or Plain Text HTML is recommended for better reproduction of your form Be sure the E mail to button is selected and enter the customer s e mail address 4 Inthe Output area select As File Attachment Recommended or As Message Text You can send your invoice as the text of the e mail Send Invoice by E mail x an attached document or both r Format F Output OK HTML Recommended As File Attachment Recommended a ini r Fi As Message Tex Cancel Check that the recipient s C Plain Text iael e mail address is correct Both r Send To Clipboard E mail To Center City Affordable E mail Address Accounting ept CenterCity org 5 Click OK The message will appear as outgoing mail in your e mail program Verify the information and then click Send 26 Managing accounts receivable invoices Recording a payment from a customer When you receive a payment from a customer use the Customer Payment form to specify the invoices to which the payment should apply From the Invoices register click Create New and then select Customer Payment When you enter a customer name Quicken displays the customer s balance and outstanding invoices
63. in only account balances in the Row list choose Accounts 8 Click the Accounts tab and select only your checking accounts invoices receivables accounts and bills payables accounts e Ifyou have only business accounts click Clear All and then select only your checking accounts invoices receivables accounts and bills payables accounts e Ifyou have several types of accounts click All Accounts on the left and then click Clear All Next click Business on the left and select only your checking accounts invoices receivables accounts and bills payables accounts 9 Click Show Report Quicken 2005 43 Reporting on unpaid bills accounts payable If you use accrual basis bookkeeping and track your bills in a bills payables account then you can use the accounts payable report to summarize the amount you owe each vendor Quicken subtotals the amount you owe by month but as always you can customize the report to meet your needs 1 Choose Business menu gt Go to Business Center 2 On the Analysis amp Reports tab in My Reports click Show Other Reports 3 Inthe Select a report list on the right select Accounts Payable To see more detail about the transactions in the accounts payable summary report create a transaction report 1 Choose Cash Flow menu gt Go to Cash Flow Center On the Analysis amp Reports tab in My Reports click Show Other Reports In the Select a report list on the right select Transaction Click
64. ion small companies in the United States producing 39 percent of the gross national product and creating two out of every three new jobs In recognition of their importance to the American economy the federal government created the SBA with a mandate to support and counsel small businesses and to assist their start up and growth The SBA has business development specialists in offices nationwide and provides training counseling research and other specialized assistance at nearly 1 100 locations nationwide as well as publications videotapes and online information The Service Corps of Retired Executives SCORE provides training and one on one business counseling at no charge SBA s Business Information Centers BICs provide state of the art technology for accessing market research databases and a vast library of business information For more information visit the SBA Web site Choose Business menu gt Go to Business Center and click the Analysis amp Reports tab In Internet Resources click IRS Small Business Administration Other small business organizations The following organizations can provide useful information e National Association of Women Business Owners www nawbo org U S Chamber of Commerce www uschamber org e RlSEbusiness Research Institute for Small and Emerging Business Inc www riseb org e National Association for the Self Employed NASE www nase org You can also get helpful informati
65. ken makes it easy to pay the bills you have already entered in Quicken When you pay a vendor use the Payment to Vendor form to enter the payment details Quicken updates the balances in your bills payables account and the checking account from which you withdraw the payment 1 Choose Business menu gt Go to Business Center 2 On the My Data tab in the Business Accounts snapshot in the A P Accounts Bills area click the account that contains the bill Quicken 2005 37 3 Select the bill you want to pay and click Form Bills Business Bills Register Create New Delete Project JobList Find View Report Printw Options How Do I Date A Number vendor Due Date Billed Clr Paid Balance Type Category Memo Exp Molotsi s Copy Center Due Date Biz Printing and Reproduction Memo 2 017 10 7 227 11 For transactions that require follow up or Click Form toopen the bill more information you can add flags notes and alerts J ust right click on the transaction choose Notes and Flags from the menu and follow the on screen instructions Quicken displays the Bill form 4 Click Create Payment Quicken displays the Payment to Vendor form The Payment to Vendor form shows the vendor name and unpaid balance you owe this vendor plus the amount due on the specific bill you opened for payment Payment to Vendor Vendor Molotsi s Copy Center CJ Withdraw From Business Checking X 2
66. l to see your payroll detail Quicken 2005 67 Quicken com resources You can find a comprehensive small business directory at the Quicken com small business Web site Choose Business menu gt Go to Business Center and click the Analysis amp Reports tab In Internet Resources click Small Business Resources You ll find everything from information about office management and hiring employees to explanations about various business structures Intuit checks stationery forms and supplies To meet your business needs Intuit offers a complete line of time saving products including W 2 and W 3 forms checks deposit slips double window envelopes single sheet forms leaders for printers endorsement message and return address stamps imprinted stationery and Intuit software products that work with Quicken To order supplies choose Tools menu gt Quicken Services Then under J ust for Quicken click Order Checks amp Supplies To order software products choose Online menu gt Quicken on the Web gt Quicken Products When should I upgrade to QuickBooks Like Quicken QuickBooks is designed to be easy to learn and use The key distinction is that Quicken Home amp Business is designed for sole proprietors who want to track personal and business finances in one place You should consider upgrading to QuickBooks if e Your accountant advises you to use double entry bookkeeping e You need to track product inventory or billable ho
67. lets you clearly define your management plan look at your own strengths and weaknesses and decide what salaries and benefits you ll offer e It forces you to take a hard look at how you ll remain profitable and solvent A business plan typically includes a start up budget and an operating budget what it will cost to stay in business for the first year This helps you determine the amount of start up capital you ll need either for a new business venture or for the expansion of an existing business As abusiness grows and expands knowing what business you re in and who your customers are helps you to make better decisions Quicken includes no cost tools to help you write a mini business plan Choose Business menu gt Go to Business Center and click the My Data tab In Business Services click Create a Business Plan And when you decide that a more comprehensive business plan is what you need you can purchase and install complete business plan software from your Quicken Premier Home amp Business CD ROM Finding legal personnel and tax guidance Some of your most pressing questions and concerns may be in the areas of the law employee relations and taxes These are precisely the areas where research can be both expensive and time consuming Fortunately Quicken Premier Home amp Business includes information from Nolo publishers of practical and easy to understand business guides written in plain English about these and other topics
68. ll and then select only the accounts you want to include e Ifyou have several types of accounts click All Accounts on the left and then click Clear All Next click Business on the left and select only the accounts you want to include Click the Classes tab Click Mark All 10 Click the Advanced tab 11 In the Transaction Types list select Deposits 12 Click Show Report To track accounts receivable see Chapter 3 Managing accounts receivable invoices on page 15 50 Managing cash flow income and expenses Preparing for business income taxes Quicken can automate many of your tax preparation chores and help you gather data for IRS forms and schedules whether you fill them out yourself use TurboTax or hand everything over to a professional The more carefully you set up your Quicken data the more Quicken can help Make sure you assign the appropriate categories to all your tax related transactions Most of the preset categories already have the correct tax form line item assigned to them For example the Consulting category is assigned to the Gross Receipts line item on Schedule C Profit or Loss from a Business For more information see Setting up business categories on page 8 If you assign the appropriate categories to all your tax related transactions you can import your Quicken data directly into TurboTax Consider installing TurboTax even if you continue to use a professional tax preparer it can give you i
69. n apply the down payment amount The next time you enter this customer s name in the Customer Payment form Quicken displays the prepaid amount in the Existing Credits field Click Apply Existing Credits to apply it to an outstanding invoice Quicken 2005 27 Tracking cash register sales or other undeposited funds There may be times when you receive payments for invoices or cash sales but haven t had the time to deposit the payments into your bank account If you receive payment in full at the time of sale you ll want to track the items you ve sold You don t need to record such sales in your invoices receivables account because you ve already been paid See Adding an invoices receivables account on page 16 for more information about using an invoices receivables account You can make a holding account to track the money until you deposit it at the bank Add an asset account and name it something like Undeposited Funds Then when you record a payment in Quicken select Undeposited Funds as the deposit account When you actually deposit the money at your financial institution simply enter a transfer transaction in Quicken from the Undeposited Funds account to the bank account For cash register sales you could either enter each cash sale individually or enter a summary at the end of the day In either case you don t have to enter a customer name because there is no balance due However if you use a name such as Daily Receipts or Ca
70. nce as or Difference in To compare both values for the two time periods select both 7 Click the Accounts tab 8 Select the accounts that you want to include in the report 9 Click Show Report Reporting on cash receipts and disbursements A cash receipts and disbursements report shows your cumulative cash position on a weekly basis To create a cash receipts and disbursements report 1 Choose Cash Flow menu gt Go to Cash Flow Center 2 On the Analysis amp Reports tab in My Reports click Show Other Reports 3 Inthe Select a report list on the right select Transaction 4 Click Customize 42 Managing cash flow income and expenses 5 Inthe Date Range fields set the date range to cover the period you want To report on future dates in the Date Range field choose Custom Date and then choose a date range from tomorrow to a future date you specify 6 On the Display tab in the Subtotal By list select Week 7 Click the Accounts tab and select only your checking and invoices receivables accounts Don t include accounts used to track noncash expenses such as asset and liability accounts e Ifyou have only business accounts click Clear All and then select only your checking and invoices receivables accounts e Ifyou have several types of accounts click All Accounts on the left and then click Clear All Next click Business on the left and select only your checking and invoices receivables accounts 8 Click Show Re
71. nce to field enter the current dollar value of the asset Quicken displays the amount of depreciation in the Decrease column 5 Inthe Adjustment Date field enter the appropriate date 6 Inthe Category for Adjustment field enter the name of this asset account in square brackets for example Biz Computer 7 Click OK Quicken displays the balance adjustment in the register To track depreciation over the life of the asset start with the purchase date and purchase price a In this example the computer Asset Poan R peaistes PE was pu rchased on 1 1 2002 Delete Find Transfer Update Balance View Report Options How Do I for 5 000 with funds f Ref M M transferred from a checking 1 1 2002 Opening Balance 5 000 00 account called Biz Checking Biz Checking 1 1 2003 Balance Adjustment 1 000 00 R 4 000 00 Biz Computer 1 1 2004 Balance Adjustment 1 000 00 R 3 000 00 Biz Computer Balance Adjustment 1 00000 R 2 000 00 Biz Computer Enter a Balance Adjustment each year to track the decline in value 58 Tracking profitability and calculating equity Purchasing assets When you purchase an asset record the purchase in your checking account register the same as always but in the Category field specify a transfer by typing the name of the asset account you added to track this asset Quicken enters a parallel transaction in the asset account that transfers the fixed asset s value from
72. ndard list Extended list Auto Auto m Taxim Bank Charge I Bank Charge m Bez O z A Schedule C Advertising z Ads E gt s TA Schedule C Advertising EEDEN ped Debt LI Bad Debt E __ Schedule C Bad debte from s Reasonable costs of advertising the business in bar C Ca M Schedule C Car and truck ex newspapers publications radio or television Also gt Commission Commission M Schedule C Commissions and include cost of brochures business cards or other Discounts I Discounts I Schedule C Returns and allo Promotional material Do not indude advertising costs incurred to influence legislation Dues and Sub 7 Dues and Subscriptions Schedule C Other business e t Employee Ben 7 Employee Benefit Business Schedule C Employee benefit i Gross Sales I Gross Sales m Why do I need tax line items pelnsurance Bus I Insurance Bus Schedule C Insurance other Audit my tax categories beInt Paid IntPaid I Schedule C Interest expense i Fi Vv 7 ias Late Fees Late Fees M Schedule C Other business e TEE iLegal Prof Fees 7 Legal Prof Fees M Schedule C Legal and profes lt Payee Usage Licenses and 7 Licenses and Permits Schedule C Taxes and licenses Biz Ads i Meals amp Entertn 7 Meals amp Entertn IV Schedule C Meals and entert AnyTown Gazette 7 bMiscellaneous 7 Miscellaneous Bus Schedule C Other business e Web Hosting 56 hMortgage Inte 7 Mortgage Interest Busin Schedul
73. nformation about tax related transactions you might have overlooked The Quicken tax reports can help you plan ahead by summarizing your tax related income and expenses listing your tax deductible transactions and giving you an estimate of your tax liability The Tax Planner can help you prepare for the inevitable by giving you a clear picture of your current tax situation throughout the year When you re ready to gather your information at tax time just create these reports in Quicken A Schedule C report lists transactions for Schedule C subtotaled by tax line item Choose Reports menu gt Business gt Schedule C e Atax summary report lists all your tax related transactions grouped and subtotaled by category Choose Reports menu gt Tax gt Tax Summary e Atax schedule report lists all your tax related transactions grouped and subtotaled by tax form name and line item You may need to assign line items from tax forms and schedules to some of your Quicken categories though most are preset Choose Reports menu gt Tax gt Tax Schedule e A capital gains report for reporting on Schedule D shows short term long term and super long term capital gains for securities sold during aspecified period Choose Reports menu gt Tax gt Capital Gains Theinvestment income report for reporting on Schedule B shows dividend income taxable and tax exempt interest income taxable and tax exempt capital gains distributions
74. nses Business related cash flow features help you make prudent day to day decisions You can track cash flow see income and expenses broken down by product or job make forecasts and more Tracking profitability or calculating equity is easy with the Quicken balance sheet report and the profit and loss P amp L statement You can also depreciate capital equipment and track loans Find the right tools to help you track payroll manage contact information write a business plan find expert advice or manage a company that has outgrown Quicken Chapter 2 Setting up Quicken for business use Chapter 3 Managing accounts receivable invoices Chapter 4 Managing accounts payable bills Chapter 5 Managing cash flow income and expenses Chapter 6 Tracking profitability and calculating equity Chapter 7 Resources for growing your business 4 Getting started with Quicken Setting up Quicken for business use Which accounts will you need 6 Keeping business and personal data separate 6 Setting up business categories 8 Setting up classes 13 This chapter shows how to customize your standard Quicken data file and accounts to track business related finances After adding accounts you ll learn how to enter transactions using categories and classes which give Quicken its powerful reporting tracking and analysis capabilities Use them to manage your business wisely and gain insights into your finances You ll also le
75. nt Paid est expense Late Fees p Ta r business e Legal Prof Fees Taukei and profes Schedule C Advertising z Licenses and Permits Meals amp Entertn Miscellaneous Bus Mortgage Interest Bu Office Pension and Profit Sh Postage and Delivery M Tax telated Standard line item list Extended line item list Reasonable costs of advertising the business in amp newspapers publications radio or television Also include cost of brochures business cards lor other promotional material Do not include advertising costs incurred to influence g s and licenses Printing and Reproduct rinting and Reproduction Jv Other business e Rent on Equip I Rent on Equip V Schedule C Rent lease vehicl Rent Paid I Rent Paid V Schedule C Rent lease other Repairs I Repairs IV Schedule C Repairs and main Dakine oe Ei Schedule Ciakas sae siu B New Add From List Edit Delete Merge 8 Setting up Quicken for business use The preset business categories If you followed Quicken Guided Setup after you installed Quicken then you were prompted for whether you want to use Quicken to track a business If you clicked Yes then Quicken added the preset business categories for you If you did not have Quicken add these categories for you or you want to reload Quicken s preset business categories for any reason follow these steps 1 Choose Tools menu gt Category List
76. nt in Quicken to record your cash transactions Tracking invoices receivables accounts To use Quicken for accounts receivable you need to set up an invoices receivables account This account tracks amounts owed to your business for the goods and services you sell to your customers For details see Adding an invoices receivables account on page 16 Tracking other current assets Other current assets that your business owns might include Treasury bills certificates of deposit prepaid expenses amounts already paid for services your business has yet to receive prepaid deposits which will be returned to you at a later date reimbursable expenses which you can later include on an invoice to a customer and notes receivable if due within one year Add an asset account in Quicken to track any asset that you plan to use up or convert into cash within one year 56 Tracking profitability and calculating equity Tracking fixed assets and depreciation A fixed asset is anything you own that is not converted into cash during one year of normal operations A fixed asset is usually something necessary for the operation of your business such as a truck cash register computer or photocopier Understanding depreciation Fixed assets are equipment or property your business owns that are not for sale Because they last along time you don t deduct their entire cost on the current year s tax return instead the IRS generally allows y
77. o field enter additional information about the vendor or enter a note to remind yourself about the reason for the refund Optional 11 Ifthe refund wasin the form of a check in the Number field enter the check number for tracking purposes Optional 12 Click Enter Quicken records the refund in the account you selected and updates the bills payables register 40 Managing accounts payable bills Managing cash flow income and expenses Using reports to understand cash flow 42 Planning and forecasting your cash flow 44 Reporting on projects and jobs 47 Preparing for business income taxes 51 When you organize your business transactions in Quicken by project job or assign categories and classes to them you ve got a wealth of information at your fingertips The topics in this chapter show you how to use the features in Quicken to examine and use the data that you ve collected You ll learn how to Create business cash flow reports as well as other reports that provide information about your income and expenses e Forecast your cash flow e Prepare for tax time 41 Using reports to understand cash flow One way of keeping an eye on the health of your business is to periodically analyze your income and expenses You can create and customize reports in different ways to show different levels of detail Choosing cash or accrual basis reports Quicken Premier Home amp Business defaults to cash based reporting for
78. on from the following sources State economic development agencies e Chamber of Commerce e Local colleges and universities e Libraries Note All Web sites are current as of the completion of this book 70 Resources for growing your business Index If you don t find the topic you are looking for here try Quicken Help Choose Quicken Help menu gt Contents click the Index tab and then enter a keyword A A P See accounts payable A R See accounts receivable accounting methods accrual basis 3 cash basis 3 accounts assets and liabilities 6 bills payables 6 36 income and expenses 6 invoices receivables 6 15 sales tax 6 25 separating business and personal 7 setting up chart of accounts 6 tax liability 25 accounts payable overview 15 35 paying bills 37 Payment to Vendorform 37 recording bills 36 reports 44 setting up 36 accounts receivable overview 15 reports 29 setting up 16 accounts tax liability 24 accrual basis accounting 3 Address Book using 69 address company 25 advance payment 27 aging information 31 alerts unpaid bills 39 alerts unpaid invoices 31 asset accounts fixed assets 57 tracking receivables 20 assets and liabilities 62 current 56 examples of 53 fixed 57 on balance sheet report 61 purchasing 59 recording depreciation 59 recording thefts orlosses 60 selling 59 audits record keeping 7 B balance sheet 61 benefits of using Quicken 2 billing customers See estimates
79. or multiple product lines Set up your classes based on the type of reporting you want to do For example if you work on multiple projects at one time set up a class for each project If you work with multiple clients set up a class for each client Keep class names short because they need to fit next to the category in the Category field Business type Examples of Quicken classes Consultant or contractor with several clients Rogersjob Ellis job Rental property owner Oak St Market St Condo Tracking multiple product lines or farm enterprises You can also use classes to track multiple product lines of a single business or to track the profitability of several farm enterprises on a single farm this is called enterprise accounting To see the profitability for each type of product or enterprise but still keep consolidated numbers for your tax return you would use Quicken classes Here are some examples Business Examples of classes tracking a product line or farm enterprise Carpenter or crafts person with several product lines Furniture Toys Farmer Corn Soybeans Note For more information about classes see Tracking expenses should you use classes or projects on page 22 and Tracking projects jobs on page 18 For more information about tracking farm enterprises choose Help menu gt Contents click the Index tab and enter farm finances Quicken 2005 13 Using classes when
80. orts click Show Other Reports In the Select a report list on the right select Balance Sheet Click Customize In the Date Range fields set the date range to cover the period you want no UW A W N e If you track personal and business accounts in the same data file click the Accounts tab and select only your business accounts Optional a Click All Accounts on the left and then click Clear All b Click Business on the left and then click Mark All 7 Click Show Report The following is an example of a balance sheet Quicken 2005 61 S Balance Sheet iol x Delete Export Data v Preferences How Do I a P Date Range Custom Date v Save Report Customize Print Report History Balance Sheet As of 4 30 2004 Includes unrealized gains Balance Sheet As of 4 30 2004 k 4s of 4 30 2004 Cash Basis 4 30 2004 Account Balance ASSETS Cash and Bank Accounts Business Checking 14 423 87 TOTAL Cash and Bank Accounts 14 423 87 Other Assets Equipmt 6 000 00 TOTAL Other Assets 6 000 00 TOTAL ASSETS 20 423 87 LIABILITIES amp EQUITY LIABILITIES Other Liabilities Equipment Loan 15 000 00 TOTAL Other Liabilities 15 000 00 TOTAL LIABILITIES 15 000 00 EQUITY 5 423 87 TOTAL LIABILITIES amp EQUITY 20 423 87 Calculating equity The balance sheet report includes a line that displays your equity Equity is the difference between what you own assets and what you owe liabilitie
81. ou sell You can use invoice items for tangible goods or services that you sell at a per item or hourly rate You can also use invoice items for one time charges For example a consultant might have a Consulting Fee item for their hourly billing rate plus a Marketing Manual item for a product they sell An auto body shop might have a Labor item for their hourly billing rate plus several items for auto parts or products they sell When you set up a new item enter a name description and the amount you charge For services enter your hourly billing rate as a Per Item Rate For example if the item is an hour of Design Consulting you could enter a Per Item Rate of 45 00 And if the item is taxable select the Taxable check box When you re ready to create an estimate or invoice much of your work is already done J ust choose items from your item list and enter the quantity Quicken calculates the totals for you If you sell dozens of products or parts just set up a few major item types and then edit the item price when you enter it on the invoice If you need to track an extensive inventory consider upgrading to QuickBooks See When should upgrade to QuickBooks on page 68 Discounts special charges and subtotals A discount or special charge is one that adds a positive or negative percentage on the item that immediately precedes it To set up a discount in the New Item dialog create a new item called Discount Then
82. ou to deduct their cost over several years But because fixed assets wear out or become obsolete for example a car or truck wears out computers become obsolete their value declines constantly from the day you purchase them The amount of this decline in value is called depreciation The IRS wants you to depreciate the cost of a fixed asset over what they deem as the useful life of that asset for example five years for a computer To determine the value of a fixed asset at any point in time you subtract its accumulated depreciation total amount of depreciation since the asset s purchase from its original cost For example suppose you bought a piece of equipment in January 2002 for 5 000 By J anuary 2005 the equipment may have depreciated by 60 percent of its original value or 3 000 Therefore the value of the equipment in J anuary 2005 is 5 000 original cost 3 000 accumulated depreciation 2 000 current value Note Determining the amount of depreciation to deduct can be a complex process and the IRS rules on the subject change often Consult a Certified Professional Accountant for help in figuring actual depreciation amounts Tracking the value of fixed assets To track the value of a fixed asset in Quicken add an asset account for each piece of capital equipment where you can record the initial value and depreciation To add an asset account 1 Choose Business menu gt Go to Business Center 2 On the M
83. ounts receivable overview of how to create an estimate or invoice invoices creating how to change an invoice or estimate invoices editing how to use a sales tax account sales tax account Quicken 2005 21 Scheduling future invoices You can arrange to handle invoice and payment transactions ahead of time and have Quicken remind you before they re due or record them for you For example you can schedule recurring transactions that you request payment for at the same time every month such as payment from renters For more information about scheduling transactions see Scheduling future transactions on page 45 Tracking expenses should you use classes or projects When you bill expenses to clients Quicken can help you track actual costs versus estimates segregate income and expenses for example by rental property and track expenses by job project or department This makes Quicken valuable to medical legal consulting and other professional service firms as well as to property management job shop manufacturing construction and similar businesses You can track expenses with the Project J ob List or by using classes e Using the Project J ob List takes the least time but gives you less information in your reports You need to assign bills to the corresponding project job to see your expenses for that project job in the Project ob List and the project job by project report For more information about creating proj
84. pense Repairs Supplies Taxes Utilities 5 Inthe Tax Line Item list select the appropriate Schedule E tax line assignment for the category you are adding Set Up Category x Neme SLU eo If a category doesn t provide Description mme enough detail you can create eae subcategories within the category toup Income e He d f A To change the category to a Income subcategory select Subcategory of C Expense TE Spending is not discretionary and enter the name of the parent Subcategory of Biz Income z category in the field on the right p Tax Tax line item Schedule E Rents recei M Tax telated Standard line item list C Extended line item list Payment for the use or occupation of property including monthly rent for an apartment house garage advance rent payment for canceling a lease expenses paid by the tenant Do not include security deposit until it is forfeited by the H 6 Click OK Quicken 2005 11 Categories for farm finances Repeat the steps in the preceding section but in the Set Up Category dialog click Extended line item list When you do Quicken adds Schedule F tax line items to the list You can add categories here for Cost of Resale Livestock or Items Sales Proceeds from Livestock or Items Agricultural Programs Payments Insurance Crop Insurance Proceeds Received Feed Fertilizer Freight Rent Seed Storage Taxes Utilities Veterinarian Expens
85. port In the final report the balance is your cumulative cash position through each week The report takes into account your bank account balance as of the beginning of the report A negative balance means that you are out of cash as of that date Reporting on sources and uses of cash This report shows the largest sources of income and expense for your business The sources and uses report can show historic cash flow or forecasted cash flow 1 Choose Cash Flow menu gt Go to Cash Flow Center On the Analysis amp Reports tab in My Reports click Show Other Reports In the Select a report list on the right select Banking Summary Click Customize un FP WwW N In the Date Range fields set the date range to cover the period you want To report on future dates in the Date Range field choose Custom Dates and then choose a date range from tomorrow to a future date you specify 6 On the Display tab in the Organization list select Cash Flow Basis This lets you see transfers as part of the cash flow 7 You can customize the sources and uses of cash report in these ways e Forsources and uses totaled by category in the Row list choose Category You can also create a transaction report that subtotals by category choose Reports menu gt Cash Flow gt Transaction e For sources and uses totaled by payee in the Column list choose Payee You can also create a transaction report that subtotals by Payee To see the changes
86. port once to select it and then click Customize Transactions from some all accounts Customize 3 Inthe Select a report list on the right select Transaction If you do not see the report in the list use the scroll bar to scroll to the bottom of the list Click Customize In the Date Range fields set the date range to cover the period you want In the Display tab in the Sort By list select Payee y HO WN A To create a report that shows your receivables by week in the Subtotal By list select Week Optional 8 Click the Accounts tab and select only your invoices receivables accounts e Ifyou have only business accounts click Clear All and then select only your invoices accounts e Ifyou have several types of accounts click All Accounts on the left and then click Clear All Next click Business on the left and select only your invoices accounts 30 Managing accounts receivable invoices 9 Click Show Report Quicken displays the Transaction Report LEA Delete Export Data y Sort v Print Report History Transaction Current Mo ioli Preferences How Do I Go to Category List Date Range Current Month Subtotal By Week Save Report Customize Transaction Current Mo 5 1 2004 Through 5 31 2004 Account Num Description memo Category cir Date Amount BALANCE 4 30 2004 TOTAL 5 1 2004 5 1 2004 0 00 0 00 BALANCE 5 1 200
87. reset business categories to track business related transactions e Set up separate Quicken data files for your home and for your business The drawback is that you can t see the overview of your finances in one place e Mix business with personal data in the same checking account Use both categories and classes to distinguish between business and personal transactions This is not recommended for tax reasons 6 Setting up Quicken for business use Add business and personal accounts in one data file Quicken Premier Home amp Business was designed to help you see how self employment income contributes to your overall financial picture To take advantage of this ability use the same data file for both business and personal finances just be sure to add separate checking and credit card accounts in Quicken used specifically for business income and expenses do this at your financial institution too Deposit all business income into a business only account and pay all business related expenses from a business only account Note Asan extra safeguard and to get the most out of reporting tracking and planning tools be sure to assign business related categories whenever you enter or download transactions into your accounts For more information see Setting up business categories on page 8 To add a business account in Quicken follow these steps 1 Choose Business menu gt Go to Business Center Quicken displays
88. rrent rates choose Online menu gt One Step Update Note that Quicken uses the date of the trip to determine the applicable IRS tax rate at the time of the trip This means a trip entered in tax year 2003 may have a different tax rate from a trip entered in tax year 2004 5 Enter the purpose for the trip your destination and the vehicle you drove 6 Enter the number of miles you drove You can enter the total number of miles directly in the Miles traveled field or to have Quicken calculate this value for you enter the beginning and ending mileage in the Odometer at Start and Odometer at End fields Quicken multiplies the number of miles by the downloaded Rate value or the Other rate you supplied 7 Ifyou selected Other as your trip type enter a mileage rate or leave this field blank if you just want to track the number of miles 8 Click Record Trip 9 To make a printed copy of your mileage expenses click Print Optional The printed copy lists each record displayed in the All Trips table If records for more than one type of trip are displayed Quicken lists the total miles for each type of trip You can filter this table so that only records that meet specific criteria appear at any one time You can also change the columns that appear Click Customize to make changes Note When you use the Vehicle Mileage Tracker it adds tax related mileage categories to your Quicken Category List Do not use these categories when en
89. rsable expenses e Less time bidding and invoicing Quicken remembers invoice elements customers projects invoice items charges per item or per hour even sales tax rates J ust click items to include Customized invoices Design invoices with just the information you need in a customized layout with your company logo Job tracking for multiple customers and projects The Project J ob List gives you an overview of each customer s job broken down by estimates invoices and receivables with job status and totals e Powerful graphs and reports Your Quicken data helps you manage your business and communicate with lenders and partners Create balance sheets P amp L statements and cash flow reports with the click of a button Track profitability depreciation of assets and calculate equity Quicken supports cash and accrual basis reporting Simplified business taxes The preset Schedule C categories make it easy to track tax related business expenses You can even track tax deductible mileage Getting started with Quicken Which bookkeeping method should you use Start off by choosing a bookkeeping method cash or accrual basis Later in this section you can modify your Quicken settings to present report data according to that method Your bookkeeping method determines how you report income and expenses on tax forms You must choose a bookkeeping method when you file the first tax return for your business After tha
90. rtnership to the partners capital accounts Calculating equity for a corporation or limited liability company L L C A corporation is owned by its stockholders In a corporation you ll usually want to separate the stockholders investment of capital from the stockholders share of earnings If your business is incorporated you should add a liability account for the paid in capital or investments of the shareholders This is the Capital Stock account During an accounting period you could distribute the earnings of the corporation to stockholders as dividends At the end of an accounting period enter a transfer transaction to transfer any remaining income of the corporation to another liability account called Retained Earnings The balance in the Retained Earnings account is retained for use in the business The total of the balances in the Capital Stock account and the Retained Earnings account equals the total shareholders equity Note More information about the different organizational structures available for small businesses is accessible from the Quicken Business Center Choose Business menu gt Go to Business Center and click the Analysis amp Reports tab In Tools click Small Business Guidance Under Start amp Run a Small Business click Legal Forms of Business See also the small business pages of Quicken com Choose Business menu gt Go to Business Center and click the Analysis amp Reports tab In Internet Re
91. s Assets can include things like e Cash e Unpaid invoices Investments and fixed assets owned by your company Liabilities are things your business owes such as e Loans Unpaid bills e Sales tax and payroll taxes you owe to the government Your equity reflects the health of your business because it is the amount of money left after you satisfy all your debts Equity comes from two sources e Money invested in your company e Profits of your business Calculating equity for a sole proprietorship A sole proprietorship is the simplest form of business organization The business has one owner you and the existence of the business depends solely on your efforts You can check the value of your owner s equity by creating a balance sheet report 62 Tracking profitability and calculating equity Calculating equity for a partnership A partnership is a business owned by two or more persons in which each partner owns a share of all assets and liabilities If your business is a partnership you should set up a separate liability account for the initial investment of each partner You use these capital accounts to track each partner s equity or ownership interest in the business If a partner withdraws cash from his or her capital account the balance of the capital account which is his or her ownership interest in the business decreases At the end of an accounting period you distribute the net income profit of the pa
92. s on a personal credit card e Writing business checks payable to cash Depositing business receipts directly into a personal checking account Quicken 2005 7 If the IRS ever needs to see your records you must be able to document all of your income sources and deductions When you deposit all business receipts in a separate bank account and make payments by check you can use your bank statement and canceled checks to back up your records Setting up business categories In addition to the standard categories included with all versions of Quicken Quicken Premier Home amp Business also comes with preset business related categories and subcategories To get meaningful data from tracking reporting and analysis tools assign a category when you enter transactions Customize the preset list Generally all the income and expense transactions for your small business are tax related Don t miss a deduction Quicken can track the tax related transactions and assign the tax form line item for you This vastly simplifies your tax planning and reporting The preset Category List already includes most of the tax form line item assignments you need for your business all you do is assign a category when you enter a transaction Then just run a tax schedule report at the end of the year Keep in mind you still need to save receipts To see the preset list choose Tools menu gt Category List The business categories are each assigned to
93. sactions on page 14 One way to use classes is to create one for each project job in order to report on cash flow in more detail When you do you can e Report income and expense category totals broken down by class e Summarize your profit and loss totals broken down by class e Report monthly income and expenses category totals for a single class e Report the payment history for a single class e Report the payment history for all classes You can also use classes to report on other kinds of transaction level detail You might do something as simple as set up a class for each customer and then report on income and expenses broken down by customer You could do the same for a product line or farm enterprise see Tracking multiple product lines or farm enterprises on page 13 Quicken 2005 47 Because people use classes so many different ways there is no preset list Before you decide to use them think about how you want to report on your business s income and expenses For examples see the reports described on the following pages and then see Setting up classes on page 13 Report income and expense totals for all classes If you have set up a class for each project or product line you can create a project job report that shows your income and expenses for each class Choose Reports menu gt Business gt Project J ob To learn more about project job reports choose Help menu gt Contents click the Index tab en
94. select the Percentage check box and enter a negative percent in the Per Item Rate field The next time you want to discount any item enter the item as usual in the Invoice form and then add the Discount item in the line immediately following Quicken calculates the discount Oo gt Item Name Number Pro Bono Discount Category Class Charity e Description discount rate for registered 501 c nonprofits I Subtotal of the Preceding Items T Print Extra Blank Line To set up a 30 discount select the Percentage check box and enter 30 in the Per item Rate field Taxable Per Item Rate 30 00 IV Percentage I Inactive Follow the same steps for a surcharge or finance charge but enter a positive number for the Per Item Rate A subtotal item adds up the amounts of all the items above it To set up a subtotal item in the New Item dialog create an item called Subtotal and then select the Subtotal of the Preceding Items check box To apply a discount or special charge to several items enter the subtotal item before you enter the discount or special charge on the invoice To learn more about creating new items or creating an item list choose Help menu gt Contents click the Index tab enter invoices and select items on an invoice Quicken 2005 17 Tracking projects jobs The Quicken project job feature helps you track multiple jobs for a given customer For example a freelanc
95. sh 43 unpaid invoices alerts 31 subtotal items 17 summary reports 43 W supplies ordering from Intuit 68 synchronizing Address Book 69 Web Quicken com 68 T small business sites 70 tax liability accounts additional 25 tax liability accounts first 24 tax schedule reports 51 tax summary reports 51 taxes preparing for payroll 51 small business 69 tax related categories 51 reports 51 theft of a fixed asset 60 tracking clients with classes 22 fixed assets 57 mileage 52 profit and loss 54 projects jobs with classes 22 projects jobs with the Project Job List 22 transactions assigning classesto 14 itemizing by class 50 scheduling 45 trial period QuickBooks 68 QuickPayroll 67 75 Index Quicken 2005 76
96. sh Customers your reports and graphs will use that name to identify the source of this sales income Handling overpayments and returns When a customer overpays an invoice or returns a product you can choose to credit the customer s account or refund the amount To record acredit for returned goods 1 Choose Business menu gt Go to Business Center 2 Onthe My Data tab in the Business Accounts snapshot in the A R Accounts Invoices area click the account that contains the invoice 3 Inthe toolbar in the Create New list select Credit 4 Enter the customer name the job if applicable items returned and any additional information 5 Specify how to deliver the information e Click Print to print the credit memo for the customer e Click E mail Clipboard to e mail it 6 Click Enter Quicken associates a credit with that customer s name so that when you enter the customer s name in the Customer Payment form the credit is displayed in the Existing Credits field To record a credit and issue a refund for returned goods 1 Choose Business menu gt Go to Business Center 2 Onthe My Data tab in the Business Accounts snapshot in the A R Accounts Invoices area click the account that contains the invoice 3 Inthe toolbar in the Create New list select Credit 4 Enter the customer name items returned and any additional information 5 Click Refund Quicken displays the Refund form 6 Inthe Account to Pay From field ent
97. sources click Small Business Resources Quicken 2005 63 64 Tracking profitability and calculating equity Resources for growing your business Using QuickPayroll with Quicken 66 How QuickPayroll works with Quicken 67 Quicken com resources 68 Intuit checks stationery forms and supplies 68 When should upgrade to QuickBooks 68 Quicken business resources 69 Creating a business plan 69 Finding legal personnel and tax guidance 69 Managing contact information 69 Other business resources 70 The Small Business Administration SBA 70 Other small business organizations 70 This chapter points you to other resources to help manage and grow your business Some resources are available from within Quicken and some on the Web some are developed by Intuit some by government or private agencies For example paying employees can be a challenge besides the complexity and potential for penalties it takes time away from running your business We recommend subscribing to QuickPayroll a simple and inexpensive solution that integrates with the software that you are already using 65 Using QuickPayroll with Quicken QuickPayroll software is included on your Quicken Premier Home amp Business CD ROM QuickPayroll automates your payroll calculations while allowing you complete control over the amounts and dates your employees are paid There are also online updates for tax tables and forms to help ensure that your payroll tax rat
98. t amp Loss Statement Click Customize In the Date Range fields enter the date range you want the report to cover In the Row list select Class Click Show Report YN oO U A W N Be 48 Managing cash flow income and expenses Report monthly income expense totals for a single class If you have set up a class for each project or product line you can create an income and expense report for a single project or product line Choose Cash Flow menu gt Go to Cash Flow Center On the Analysis amp Reports tab in My Reports click Show Other Reports In the Select a report list on the right select Banking Summary Click Customize In the Dates fields set the date range to cover the period you want In the Column list select Month y oO UW A W N e To add a column showing how much the individual income and expense amounts contribute to total income and total expenses select the Amount as check box Optional 8 Click the Accounts tab and then select the accounts you want to include in the report e Ifyou have only business accounts click Clear All and then select only the accounts you want to include e Ifyou have several types of accounts click All Accounts on the left and then click Clear All Next click Business on the left and select only the accounts you want to include 9 Click the Classes tab and then in the Class Contains list select the class you want Quicken displays the Classes tab only after you s
99. t if you want to change your bookkeeping method you need permission from the IRS If all or part of your income depends on maintaining an inventory for example you manufacture products or buy products for resale the IRS generally requires you to use the accrual method Exception If you own a farming business you can usually choose either cash or accrual For most other businesses the IRS doesn t require a specific method Whichever method you choose you need to clearly show your sources of income deductions credits and so on For more information talk to your accountant or see the small business and self employment pages of the IRS Web site Choose Business menu gt Go to Business Center and click the Analysis amp Reports tab In Internet Resources click IRS Small Business Center Cash basis bookkeeping Cash basis bookkeeping means you record income when you receive an actual payment and record expenses when you pay bills If you record customers payments but do not count the money they still owe then you re using cash basis bookkeeping Likewise you record an expense when you pay it rather than when you receive the bill If yours is a service based business consultant lawyer or electrician the cash basis method is usually easier Accrual basis bookkeeping For accrual basis bookkeeping you record income at the time of the sale not when you receive the actual payment Likewise you record an expense when you
100. t select Transaction Click Customize In the Date Range fields set the date range to cover the period you want To create a payment history by period in the Subtotal By list select the period For example select Week to show the payments grouped by week or Month to show the payments grouped by month Click the Accounts tab and then select the accounts you want to include in the report e Ifyou have only business accounts click Clear All and then select only the accounts you want to include e Ifyou have several types of accounts click All Accounts on the left and then click Clear All Next click Business on the left and select only the accounts you want to include To limit the report to one job click the Classes tab Select the class for the client project or job you are interested in 10 Click the Advanced tab 11 In the Transaction Types list select Deposits 12 Click Show Report Create a payment history for multiple classes y oO UW A W N e 8 9 Choose Cash Flow menu gt Go to Cash Flow Center On the Analysis amp Reports tab in My Reports click Show Other Reports In the Select a report list on the right select Transaction Click Customize In the Date Range fields set the date range to cover the period you want In the Subtotal By list select Class Click the Accounts tab and then select the accounts you want to include in the report e Ifyou have only business accounts click Clear A
101. t in the specified account at the scheduled time whichever you specify To schedule a transaction 1 Open the register that contains the account you want to schedule the transaction for 2 Click the Scheduled Transactions tab at the bottom of the register 3 Click Add a Transaction Quicken displays the Create Scheduled Transaction dialog 4 Inthe Account to use and the Transaction method fields enter the appropriate information To schedule when to record an invoice In the Account to use field select the account that contains the customer s invoice In the Transaction method field select Invoice To schedule a customer payment to an invoice In the Account to use field select the account that contains the customer s invoice In the Transaction method field select Payment To schedule when to record a bill In the Account to use field select the account that contains the business bill In the Transaction method field select Business Bill To schedule a business bill payment In the Account to use field select the account that contains the business bill In the Transaction method field select Payment 5 Inthe list named Customer for invoices or Vendor for bills select the customer or vendor 6 Click Form to create the invoice payment or bill you want to schedule and enter the information Quicken requests If you are scheduling a recurring payment you only need to select the first payment in the Pay column W
102. te a project job in the next section You can also create a summary report of your income and expenses broken down by payee and project See Summarizing all projects jobs on page 47 for more information Create a project job To create a new project job 1 Choose Business menu gt Go to Business Center 2 On the Analysis amp Reports tab in Tools click Project Job List 3 On the toolbar click New Quicken displays the New Project ob dialog 4 In the Customer field select a customer in the list or type in a new one For more information about managing customer contact information choose Help menu gt Contents click the Index tab enter Address Book and select overview of 5 In the Status list select a status for your project job If the status you want is not in the list click New Edit to create your own status flag or change an existing one 6 Inthe Description field type a description of the project job Optional 7 Inthe Dates area enter the start and projected end dates for your project job 8 Click OK If you create a new invoice or estimate before creating a new project job Quicken will open the New Project J ob dialog and you can fill it in as described above 18 Managing accounts receivable invoices Creating an estimate When a customer asks you to bid on a project use Quicken to create an estimate that itemizes the products or services the customer wants You can then either print and send the estimat
103. ter projects and jobs and select reports Summarize profit and loss for all classes If you have set up aclass for each project or product line you can divide a bill among product lines or enterprises For example suppose you buy corn fertilizer for 1 200 and soybean fertilizer for 800 When the bill for 2 000 arrives you can use a split transaction to keep track of expenses for each farm enterprise On the first line of the split transaction enter Fertilizer Corn in the Category field and 1 200 for the amount On the second line enter Fertilizer Soybean in the Category field and 800 for the amount Business Checking Register Delete Find Transfer Reconcile Write Checks Set Up Online View Report Options How Do I Date amp Num Payee Payment Clr Deposit Balance Category Memo Exp AnyTown Feed And Grain Split x Memo 5P 7208 BAY Spit Transaction nan Enter multiple categories to itemize this transaction use the Memo field to record more details Mille 2 D 2 N a Biz 4 Fertlizer Com 1 200 00 4 2 Fettilizer Soy 800 00 3 Net Edt v To see a report that shows income and expenses with separate columns for each class you can create a profit and loss statement by class Choose Business menu gt Go to Business Center On the Analysis amp Reports tab in My Reports click Show Other Reports In the Select a report list on the right select Profi
104. tering transactions in Quicken accounts Enter all mileage information in the Vehicle Mileage Tracker 52 Managing cash flow income and expenses Tracking profitability and calculating equity Using the Business Center 54 Tracking profitability 54 Creating a profit and loss statement P amp L 55 Tracking current assets 56 Tracking fixed assets and depreciation 57 Liabilities 61 Creating a balance sheet 61 Calculating equity 62 This chapter shows you how to report on profitability calculate equity and track business assets and liabilities Your business assets are generally defined as what your business owns such as Cash you have on hand Money in your checking and savings accounts e Money owed to you for services you ve provided or items you ve sold accounts receivable e Money you ve loaned to someone else e Furniture and fixtures Equipment Property 53 Using the Business Center The Business Center displays a snapshot of the current state of your business summarizing your cash flow situation and account balances Choose Business menu gt Go to Business Center to see e Unpaid invoices My Data tab e Bills due My Data tab e Agraph showing the status of your business Analysis amp Reports tab e Access to business related activities such as accounts payable accounts receivable invoices bills statements payroll and reports My Data tab e Access to business reports
105. the Business Center 2 On the My Data tab scroll down to the appropriate section and then click Add Account Business Accounts Accounts receivable invoices or accounts payable bills Business Spending amp Savings Accounts Checking savings or cash accounts Business Credit Card Accounts Credit card accounts Business Property amp Debt Accounts Fixed assets capital equipment liabilities and loans Click the Business Center tab for an overview of your business finances Quicken Home gt Er Account A R A counts Invoices stomer Invoices Customer Inv Business Bills Business Che 2 Business Cre Jy A P Accounts Bills Business Bills Cashflow Center Click My Data if it is not already ent checking 1 529 00 open and then scroll down to Quicken Credi 20 00 the appropriate secti _ Add Account Edit Accounts Click Add Account 3 Follow the on screen instructions click Next to move through the pages Click Help if you need more information Avoid common record keeping mistakes Many entrepreneurs have creative ideas and marketing skills to make their business successful but little knowledge of record keeping The IRS has found that sole proprietors commonly make the following mistakes Writing checks from a personal checking account that are later claimed as business expenses e Making business related credit card purchase
106. the checking account to the asset account Selling fixed assets When you sell a fixed asset you need to enter that transaction in Quicken You want your records to show that you no longer own the asset so its current value on your books is zero If you receive a check for the purchase of a fixed asset record the deposit in your business checking account and enter the name of your asset account in the Category field of the register Quicken enters a parallel transaction in your asset account that decreases the value of the fixed asset by the amount of your deposit If you sold the asset for its current value the value in the asset account is zero Note You calculate the value of a fixed asset by subtracting the depreciation from the purchase price If you sell a fixed asset for more or less than its value you won t have a zero balance in the asset account for that item Before you close the item you need to record a capital gain or a capital loss Any capital gain or loss is income or expense to your company and should appear in business records When you have a capital gain or loss enter a transaction for it in the register for the asset account and assign the remaining value for the asset to anew income category called Cap GainLoss When you run profit and loss income statement customize the report to include the Cap GainLoss category and you ll see the gain a positive number or loss a negative number under Cap GainLoss
107. tions A business loan is another form of liability Quicken makes it easy to pull together the financial information a lender requests Your lender will probably ask for a profit and loss statement and balance sheet for current and prior fiscal years If you ve been tracking your finances in Quicken these are easy create See Creating a profit and loss statement P amp L on page 55 and Creating a balance sheet in the next section Recording a new loan When you receive a new loan add a liability account to track the principal and interest in the Business Center in the Business Property amp Debt Accounts snapshot click Add Account Don t forget the interest is probably tax deductible Because this is anew loan you are either receiving money to deposit in your checking account or receiving a new asset Thus you want to show in Quicken that you have an increase in the balance of a checking or asset account To learn about setting up a loan in Quicken choose Help menu gt Contents click the Index tab enter loans and select overview of Creating a balance sheet A balance sheet is a financial snapshot of your company on a specific date It shows assets what you own and what people owe you liabilities what your business owes to others and equity your business s net worth To display a balance sheet for your business Choose Business menu gt Go to Business Center On the Analysis amp Reports tab in My Rep
108. transactions choose Help menu gt Contents click the Index tab enter scheduled transactions and select overview of 35 Tracking bills with a bills payables account The process for tracking accounts payable in Quicken looks like this e Add a bills payables account with a zero opening balance e When you receive a bill record it in the bills payables account and then schedule the payment e Create an Accounts Payable report to find out which vendors you owe money to and how much you owe them To learn about Search the Help Index for bills payables register report accounts payable reports accounts payable detail report accounts payable reports overdue accounts payable by vendor report bills from vendors reports Adding a bills payables account Before you can enter bills from your vendors add a bills payables account 1 Choose Business menu gt Go to Business Center On the My Data tab in the Business Accounts snapshot click Add Account Select Bills Payables and click Next In the Name this account field enter a name for the account and then click Next Click Done Quicken displays the account and adds a link to the account to the Business Accounts snapshot and the Account Bar list Click the account to open your bills payables register and enter any unpaid bills you have make payments that are due or enter any credits you have from a vendor un SP Ww N To learn about Search the Help Inde
109. ts Receivable snapshot click Create an Invoice Then in the Tax Account field select lt New gt and enter the information Quicken requests To learn about Search the Help Index for entering sales tax on an invoice sales tax applying adding new liability accounts liability accounts Customizing estimates invoices credit memos Use the Forms Designer to customize estimate invoice or credit forms to suit your needs You can add remove or rename items or change their size and position likewise you can add remove or change the size of columns You can also reposition your company logo and print your company address If you need more than one type of format for example you may use one for services and another for products Quicken lets you design and save each format as a separate layout You can name each layout when you design it and then choose the layout you want from the Layout list when you create the form 1 Choose Business menu gt Go to Business Center 2 On the Analysis amp Reports tab in Tools click Forms Designer 3 Onthe left side of the Forms Designer window choose the fields you want to include 4 Ontheright side of the Forms Designer window select any field you want to change and then move or resize it a To resize a field move the pointer to the edge of the side you want to shorten or lengthen When the pointer changes to a two sided arrow hold the left mouse key down drag the field ed
110. urs e You want to maintain your accounting and payroll data in one program and deposit payroll taxes electronically e You want more than one person at a time to have access to your data file e You need enhanced reporting functionality e You need robust job costing or want a business specific QuickBooks version for accountants nonprofits retail sales or professional services Note For more information including information a Web based version of QuickBooks visit www quickbooks com Find the page for viewing the complete product line and click Compare You can also request a trial version of QuickBooks that lets you use all features for up to 15 sessions 68 Resources for growing your business Quicken business resources Creating a business plan A business plan answers the question What business am really in Although this seems like a question with an easy answer many businesses fail because the owners do not understand the true nature of their business That is why a business plan is one of the first things a prospective lender or investor will ask for Many small business owners write a business plan only when they approach a financial institution for a loan But there are many reasons why a business plan is an important exercise for any entrepreneur Ithelps you define your business goals and direction e It forces you to think about your competition and how you will compete in the marketplace e It
111. usiness cash flow and profitability This chapter will help you decide which features are right for you and your business It also gives you some tips on record keeping including how to Keep good records Choosea bookkeeping method 2 How good record keeping benefits your business Most small business owners go into business because they have a product or service that fills a niche not because they like record keeping The reality though is that good record keeping is essential to the long term viability of your business Here s why The best business decisions are based on solid information not guesses Accurate record keeping gives you real world data and insights about your company s strengths and weaknesses e Anytime you communicate with bankers partners advisors or potential lenders you need to provide complete and accurate records The best way to avoid an Internal Revenue Service IRS audit is to maintain accurate records and make informed tax related decisions With Quicken you can pull together your tax information quickly and easily to help make sure you don t underpay or overpay your taxes How Quicken helps Quicken is easy to learn and doesn t take time away from running your business After a brief setup you get the following benefits e Instant overview of cash flow Track checking and credit card expenses plus accounts receivable customer invoices accounts payable bills and reimbu
112. with categories 12 income taxes preparing for 51 information locating sources for small business 70 Internet small business sites 70 Intuit business products 65 investment income reports 51 invoices applying payment 27 creating 20 example 20 itemizing products and services 20 layout 25 reimbursable expenses 22 scheduling 45 tracking in invoices receivables account 20 tracking income and expenses 47 IRS preparing business income taxes 51 record keeping advice 7 items definition 17 discount 17 finance charge 17 handling for resale 24 subtotal 17 tracking with categories 8 using on estimates or invoices 21 J jobs tracking expenses 22 tracking with classes 22 L layout for custom forms 25 liabilities examples 62 on balance sheet report 61 liability accounts tracking loansin 61 loans tracking in a liability account 61 losses of fixed assets 60 profit and loss statement 55 73 Index M Managing yourbusiness 41 memorizing reports See saving reports mileage tracking 52 money borrowing 61 N National Association for the Self Employed NASE 70 O overpayments 28 overview managing your business with Quicken 41 owners business 62 63 pP partial payment 27 partnership calculating equity for 63 payment history report creating 30 multiple jobs or clients 50 Payment to Vendor form 37 payments from customers depositing in a holding account 28 entering retainers and down payments 27 partial 27
113. x for viewing the bills payables register accounts payable register opening editing a transaction in the bills payables register accounts payable editing transactions Recording a bill To get the most benefit from tracking accounts payable record bills in the bills payables register as soon as you receive them and schedule the payment 1 Choose Business menu gt Go to Business Center 2 On the My Data tab in the Business Accounts snapshot in the A P Accounts Bills area click the account that contains the bill 3 Inthe toolbar in the Create New list select Bill 4 Inthe Vendor field enter the name of the vendor 5 Inthe VENDOR ADDRESS field enter the vendor s address Optional If this is the first time you ve entered a bill for this vendor QuickFill memorizes the name and address Next time you can select the vendor s name from the list 36 Managing accounts payable bills 6 Toassociate a project job with the bill click Assign Project J ob select the appropriate project job and click OK Optional 7 Inthe DATE field change the date if necessary Optional 8 Inthe DUE DATE field enter the expected date of payment For example if you receive a bill on May 1 and the payment terms are Net 30 meaning the bill is due within 30 days the due date would be May 31 9 Inthe P O NUMBER field enter a purchase order number for tracking purposes Optional 10 In the Category column select a business
114. y Data tab in the Business Property amp Debt Accounts snapshot click Add Account 3 Click Asset and click Next 4 In the Name this account field enter a meaningful name for the account such as Biz Computer and click Next 5 In the As of Date and Value fields enter the appropriate option e To track depreciation over the life of the asset enter the purchase price and the purchase date e To track depreciation from today forward enter the current value and today s date 6 Click Done Quicken displays the asset account and adds a link to the account in the Business Property amp Debt Accounts snapshot and the Account Bar list 7 Ifthe funds to purchase this equipment came from another account such as a checking account or a credit card account in the Category field select the account the funds were transferred from Quicken 2005 57 8 Click Enter Note You should track capital equipment in Quicken only for the purposes of creating an accurate balance sheet report Quicken does not assign a tax form line item for depreciation These values are not imported into TurboTax or displayed on the P amp L To record depreciation each year 1 Choose Business menu gt Go to Business Center 2 On the My Data tab in the Business Property amp Debt Accounts snapshot click the account for the asset 3 Inthe toolbar click Update Balance Quicken displays the Update Balance Account dialog 4 Inthe Update Bala

Quicken 2005 Home & Business Users Guide

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Quicken 2005 Home &amp; Business Users Guide

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Quicken 2005 Home & Business Users Guide