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Quicken 2004 Home & Business Users Guide

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1. Intuit Getting Started with Quicken Premier Home amp Business __ 2004 Trademarks Intuit the Intuit Logo Quicken TurboTax and QuickBooks among others are registered trademarks and or registered service marks of Intuit Inc in the United States and other countries Quicken Brokerage and QuickPayroll among others are trademarks and or 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 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 areal person or company is purely coincidental Siebert is a trademark and or service mark of Muriel Siebert amp Co Inc Microsoft the Internet Explorer logo and Windows are either registered trademarks or trademarks of Microsoft Corporation in the United States and other countries KeyHelp Activex control copyright 2003 Keyworks Software Work Write Inc All rights reserved Quicken contains the GAlib algorithm package by Matthew Wall Copyright 1995 1996 Massachusetts Institute of Technology and Copyright 1996 1999 Matthew Wall All rights reserved RSA Digital Signature and the RSA Logo are trademarks or registered trademarks of RSA RSA Data Security Inc in the United States and other countries SECURITY Quicken contai
2. Mee Copy Preferences How Do I gt E Date Range Earliest to date Interval None X Save Report Customize Print gt Balance Sheet As of 7 16 2003 Report History 16 As of 7 16 2003 Cash Basis 7 16 2003 Account Balance ASSETS Cash and Bank Accounts Business Checking 7 050 00 TOTAL Cash and Bank Accounts 7 050 00 Other Assets Equipment 15 000 00 TOTAL Other Assets 15 000 00 TOTAL ASSETS 22 050 00 LIABILITIES amp EQUITY LIABILITIES Other Liabilities Equipment Loan 9 000 00 TOTAL Other Liabilities 9 000 00 TOTAL LIABILITIES 9 000 00 EQUITY 13 050 00 TOTAL LIABILITIES amp EQUITY 22 050 00 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 liabilities Assets can include things like e Cash e Unpaid invoices e Investments and fixed assets owned by your company Liabilities are things your business owes such as e Loans e 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 Quicken 2004 65 Calculating equity for a sole proprietorship A sole proprietorship is the simplest form of business organization The business has one owner y
3. 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 Inthe Payee field enter Balance Adjustment 2 Inthe Decrease field enter the dollar amount of depreciation 3 Inthe Category field enter the name of this asset account in square brackets for example Equipmt 4 Click Enter To track depreciation over the life of Asset Equipmt Register Delete Find Transfer Update Balance Report Options How Do I DateA Ref Description xfer Acct Memo Decrease Clr Increase Balance the asset start 1 1 2001 Opening Balance 15 000 00 15 000 00 w ith the Equipment Loan m 1 1 2002 Balance Adjustment 3 000 00 12 000 00 pu rchase ETI p rice Ref Balance Adjustment 3 000 00 Equipmt Memo Enter a Balance Adjustment each year to track the decline in value 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 the checking account to the asset account Selling fixed assets When you sell a
4. cleared I Tax telated transactions only M Reconciled Transaction types Jar Transactions z l Transfers Exclude All z Report Basis Q Subcategories Show All z Quicken 2004 59 5 Click OK The following is an example of a profit and loss income statement Profit amp Loss Statement 3 lol x Copy Preferences How Do I Date Range Year to date Column Don t subtotal X Save Report y Customize 7 Print Profit amp Loss Statement 1 1 2003 Through 7 16 2003 Cash Basis 1 1 2003 Report History Prol atement 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 OJ 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 account in Quicken to record your cash transactions Tracking invoices receivables accounts To use Quicken for accounts receivable you need to set up an invoices
5. create the form 1 Choose Business menu gt Invoices and Estimates gt Design Forms 2 On the left side of the screen choose the fields you want to include 3 Ontherightside of the screen select any field you want to change and then move or resize it e To resize the 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 edge until it is the size you want and then release the mouse button e To move afield 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 30 Managing accounts receivable invoices Choose the estimate or invoice fields you want to Layout Item v Zoom v include Introduction Click and drag to change the size or location of a field BILL TO Sample Customer 6 10 2003 You can add your own logo in bitmap format a graphics file with aname ending in BMP BVEV EV EV EVV EVENLY 4 To check your changes choose File menu gt Print 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
6. or take action to generate more cash Quicken 2004 49 Forecasting works best if your receipt of funds is fairly predictable To forecast cash flow 1 Choose Planning menu gt Cash Flow Forecast 2 Entera historic range for which you want Quicken to look for your cash flow forecast amounts 3 Optional Click Advanced to open the Advanced AutoCreate dialog 4 Choose an option below or choose Create Both and then click Done Choose Known Items if you want Quicken to include only scheduled transactions and items from your accounts payable and accounts receivable Choose Estimated Items if you want Quicken to include only amounts from your account registers or budget averaged over time 5 Click OK 6 Inthe Cash Flow Forecast window click Options and then choose Select Accounts 7 In the Select Accounts to Include dialog select all your business related accounts and then click OK If you make changes to your register budget or scheduled transaction list come back to this window and update your forecast In the Cash Flow Forecast window click Options and then choose Update Forecast Cash Flow Forecast Base Scenario oxi Print Options How Do I v Account Balances E Balance 4 2002 to 3 2003 Past Balance inthousands 124 i er x j a Select Accounts to Include x Account Type Description 4f Business Checking Bank 3 Joint Checking Bank Cancel of Customer Invoices Asset f
7. 1 813 14 Customer Message It s been a pleasure working with youl 2 Memo Total Tax Account Sales Tax zi Balance Due 1 813 14 Items following the discount item are full price This item is taxable You can use the Forms Designer described on page 30 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 dialog choose Customize from the Layout list Filling out estimates and invoices Because you convert estimates directly to invoices the two forms look very similar and require you to fill in much 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 18 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 Quick
8. 25 and categories 25 tracking 29 SBA s Business Information Centers BICs 73 scheduling invoices 26 transactions 26 49 selling fixed assets 62 Service Corps of Retired Executives SCORE 73 services adding to the item list 19 setting up Quicken datafile 6 scheduled transactions 26 49 using Quicken to track a business 5 8 Small Business Administration SBA 73 Small Business Development Centers 73 sole proprietorship 66 sources and uses of cash 47 subtotal items 20 summary reports 48 supplies ordering from Intuit 71 synchronizing Address Book 73 T tax schedule reports 55 tax summary reports 55 taxes preparing for payroll 54 small business 72 tax related categories 54 reports 55 theft of a fixed asset 63 tracking clients with classes 26 fixed assets 62 mileage 56 profit and loss 58 80o Index projects jobs with classes 26 projects jobs with the Project J ob List 26 transactions assigning classesto 15 itemizing by class 53 scheduling 26 49 scheduling future 49 trial period QuickBooks 71 QuickPayroll 69 U undeposited checks handling 33 unpaid balance report 35 unpaid bills 48 unpaid invoice list 36 unpaid invoices alerts 36 WwW Web Quicken com 71 small business sites 74
9. 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 Listtakes the least time but gives you lessinformation in your reports You need to assign bills to the corresponding project job to see your expenses for that project job in the Project J ob List and the project job by project report For more information about creating projects jobs see Tracking projects jobs on page 20 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 51 To learn about assigning classes to transactions see Setting up classes on page 13 26 Managing accounts receivable invoices Invoicing a customer for reimbursable expenses Many business owners especially consultants incur
10. about Search the Help Index for categorizing transactions categories overview of the Category List lists Category List using the preset Quicken categories or categories preset categories adding new ones Quicken 2004 9 To learn about Search the Help Index for entering a transaction with split transactions entering multiple categories 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 Choose Tax menu gt Tax Line Item Assignment Quicken displays the Category List with the Tax Line Item Assignment dialog open at the bottom 2 Inthe Category List select the category for which you want to assign a tax form line item Quicken displays its current assignment if any in the Tax Line Item Assignment at the bottom of the window 3 Inthe Tax Line Item Assignment window click in the Tax Item field and choose a tax form line item from the list Use the scroll bar to move up or down the list Quicken displays a brief description of each tax form line item on the right including eligibility requirements for specific tax deductions 10 Getting started and adding accounts 4 When you have found the correct item click App
11. 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 1 Choose Reports menu gt Cash Flow gt Income Expense Comparison 2 Click Customize 3 Set the date range to cover the period you want 4 Select Difference as or Difference in To compare both values for the two time periods select both 5 Click the Accounts tab 6 On the Accounts tab select the accounts that you want to include in the report 7 Click OK 46 Managing cash flow income and expenses 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 Reports menu gt Cash Flow gt Transaction 2 Click Customize 3 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 In the Subtotal By list select Week Click the Accounts tab In the Accounts tab select the accounts you want to include in the report Click OK You should include only your checking and invoices receivables accounts Don t include accounts used to track noncash expenses such as asset and liability accounts In the final report the balance is your cumulative cash position through each week The report takes into account your bank a
12. cash flow 49 forms credit 34 designing 30 estimate 21 invoice 23 payment 32 refund 34 Forms Designer 30 formula for value of fixed assets 62 H holding account for undeposited checks 33 income comparing for different periods 46 reporting forasingleclass 52 reporting for all classes 51 reporting for all projects jobs 51 income and expenses dividing a bill among product lines 52 on profit and loss statement 59 sample report fora single class 53 tracking with categories 13 income taxes preparing for 54 information locating sources for small business 74 Internet small business sites 74 Intuit business products 67 investment income reports 55 invoices applying payment 32 creating 23 example 23 itemizing products and services 23 layout 30 reimbursable expenses 27 scheduling 26 tracking in invoices receivables account 23 tracking income and expenses 51 IRS preparing business income taxes 54 record keeping advice 7 items definition 19 discount 19 finance charge 19 handling forresale 28 subtotal 20 tracking with categories 8 using on estimates or invoices 24 J jobs tracking expenses 26 tracking with classes 26 L layout for custom forms 30 Quicken 2004 77 liabilities examples 65 on balance sheet report 64 liability accounts tracking loansin 64 loans tracking in a liability account 64 losses of fixed assets 63 profit and loss statement 59 M managing you
13. credit and displays 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 To issue a refund for overpayment 1 Inthe invoices register click Create New and select Refund 2 Select the account from which you want to pay the refund and enter the customer name and amount 34 Managing accounts receivable invoices 3 Inthe invoices register select the payment and click Form The Customer Payment form lists the invoices and the refund 4 Click the Pay column next to Refund and then click Enter To learn more about using online payment to issue a refund choose Help menu gt Contents click the Index tab 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 e 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 repor
14. 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 Category List Edit Category 2 x 5 x New Edit Delete Options How Dol wv Name Advertising Category Type Item Medical Expense Description Cancel Doctor appt Sub A Doctors dentists ho Group Small Bi Medicine Sub is Arias El Help A Medicine and drugs Vision Exam Sub Type A Doctors dentists ho Miscellaneous Expense C Income Public Transportation Expense c REA heer Rent Expense Expense I Spending is not discretionary Biz Expense Subcategory of Biz hd Advertising sub C Advertising Bad Debt Sub Tax C Bad debts from sales COGS5 labor Sub Tax Line Item C Labor Cost of Goods COGS5 material and supplies Sub Schedule C Advertising A X C Materials supplies C COGS purchases for resale Sub f C Purchases Cost of G Dues and Subscriptions Sub M Taxtelated Standard Line Item List C Other business expe Extended Line Item List Reasonable costs of advertising the business in newspapers publications radio or television Also include cost of brochu
15. 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 62 Tracking profitability and calculating equity 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 The value of a fixed asset is the purchase price less the depreciation 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 and assign the remaining value for the asset to a new income category called Cap GainLoss The gain a positive number or loss a negative number then shows up under Cap GainLoss on your profit and loss income statement 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
16. ll want a report that includes it J ust mark it as hidden these are excluded from reports 1 Choose Tools menu gt Account List 2 Click the Manage Accounts tab 3 Select the account you want to hide and then click Hide In Quicken 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 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 If you received insurance money enter a deposit in your checking account and enter the name of the asset account in the Category field Quicken enters a transaction in the asset account that decreases the value of the asset by the amount of the insurance check 2 Inthe asset account enter a transaction that shows the amount not covered by insurance the remaining balance for the asset Enter the value in the Decrease column and assign the amount to the Uninsured Loss category Quicken 2004 63 Liabilities Creating reports for loan applications 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
17. 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 18 60 Tracking profitability and calculating equity 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 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 a long time you don t deduct their entire cost on the current year s tax return instead the IRS generally allows you 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 obso
18. research databases and a vast library of business information For more information visit the SBA Web site at http www sba gov Quicken 2004 73 Other small business organizations The following organizations can provide useful information e National Association of Women Business Owners http www nawbo org US Chamber of Commerce http www uschamber org e RISEbusiness Research Institute for Small and Emerging Business Inc http www riseb org e National Association for the Self Employed NASE http www nase org You can also get helpful information from the following sources e State economic development agencies e Chamber of Commerce e Local colleges and universities e Libraries Note All Web sites are current as of the printing of this book 74 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 5 bills payables 5 income and expenses 5 invoices receivables 5 17 salestax 5 separating business and personal 6 setting up chart of accounts 5 accounts payable overview 17 39 paying bills 42 Payment to Vendor Form 42 recording bills 41 reports 48 setting up 40 accounts receivable overview 17 repor
19. to the bill you opened here 9 Optional You can reapply the payment to other bills e 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 e To have Quicken apply the payment to the oldest outstanding bills for this vendor click Clear Pmts and then click Auto Apply 10 Optional If you have existing credit from this vendor and want to apply it to this bill click Apply Existing Credits 11 Click Enter to record the payment Quicken updates the balance in your bills payables register and the account you chose to withdraw the payment from Quicken 2004 43 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 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 In the bills payables register click Create New and then select Credit 2 Ent
20. up classes Categories help identify your business s income and expenses But what if you have several customers each of whom isa 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 Quicken 2004 13 Use classes if you need to e Track the same income or expense category for multiple jobs clients or projects e Track the same income or expense category for 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 aclass 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 Rogers job clients 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 woul
21. 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 Contents then 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 QuickPayroll to see your payroll detail 70 Resources for growing your business Quicken com resources You can find a comprehensive small business directory at the Quicken com small business Web site You ll save time finding small business related news plus everything from information about office management and hiring employees to explanations of various business structures and Web based financial calculators Visit this Web site http www quicken com small_ business 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 ad
22. 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 Popular MAPI compliant e mail programs are Microsoft Outlook Outlook Express Eudora Pegasus and Netscape Messenger 1 Display the form you want to send 2 Inthe form dialog click E mail Clipboard 3 Under Format choose a format supported by your e mail program HTML or Plain Text HTML is recommended better reproduction of your form Be sure the E mail to button is selected and enter the customer s e mail address 4 Under Output select As File Attachment Recommended or As Message Text Quicken 2004 31 You can send your invoice as the text of the e mail r Format r Output an attached HTML Recommended TT As File Attachment Recommended Send Invoice by E mail be document ASM O pis or both Plain Text Check that the Send recipient s e mail To Clipboard address is correct ddress is correc E mail To Center City Affordable E mail Address AccountingD 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 Recording a payment from a customer When you receive a payment from a customer use the Customer Payment dialog to specify the invoices to which the payment should appl
23. you the first time you enter an invoice item for which you charge sales tax If you do business in more than one tax district you may need to add more See Tracking and paying sales tax on page 29 Add an asset account for capital equipment you intend to depreciate See Tracking fixed assets and depreciation on page 61 Add an amortized loan to track the principal interest and payment schedule for money you owe see Recording a new loan on page 64 Quicken 2004 5 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 datafile 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 yourfinancesin one place and do tax planning for both employment and self employment income Use the preset 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 a
24. 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 Other business resources The Small Business Administration SBA There are over 20 million 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 1 000 locations nationwide as well as publications videotapes and online information e The Service Corps of Retired Executives SCORE provides training and one on one business counseling at no charge e SBA s Business Information Centers BICs provide state of the art technology for accessing market
25. Biz CoGs E 6 30 2003 226 Molotsi s Copy Center 300 00 Biz Printing reimbursable expe E 50 00 Deposit 350 00 5 866 72 nailing promo 5 566 72 When you re ready to invoice the customer display the Create Invoices dialog choose Business menu gt Invoices and Estimates gt Create Invoice and click Expenses 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 when you receive payment for expenses For accrual basis reporting income is recognized when you bill the customer Quicken 2004 27 These expenses have x not yet been invoiced Use Date Payee Memo Amount Hide 6 22 2003 USPS mailing promo 50 00 6 30 2003 Molotsi s Copy Center reimbursable expenses 300 00 Select this check box 5 14 2003 Molotsi s Copy Center PR collateral 300 00 to combine two or Help more expenses OK Cancel Total 0 00 Select this check box y V Print selected expenses as one invoice item if the expense is fora IV Selected expenses are taxable taxable item To learn about Search the Help Index for tracking reimbursable expenses reimbursable expenses applying markup markup item on invoices Tracking items bought for resa
26. Business Planner or visit the Quicken com Web site at http www quicken com small_ business 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 Choose Business menu gt Small Business Guidance 72 Resources for growing your business Managing contact information Use the Quicken Address Book to organize and store the contact information you need when you re 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 supports Microsoft Outlook 97 98 2000 2002 ACT 4 02 or 2000 or Palm Ill V or VII Palm
27. California 7 25 7 50 Total sales tax percentage You would add another Sales Tax liability account for Sonoma County 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 Quicken 2004 29 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 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 or remove 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 drop down list when you
28. a date range Quicken 2004 37 5 Optional Enter the statement date Quicken prints today s date on the statement by default You can manually enter a different date if necessary 6 Click Print and then click OK To learn about Search the Help Index for finance charges finance charges statement layouts form layouts 38 Managing accounts receivable invoices Managing accounts payable bills Adding a bills payables account 40 Recording a bill 41 Paying a bill 42 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 Transactions 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 more information about scheduled transactions choose Help menu gt Contents click the Index tab enter scheduled transactions and select overview of 39 Tracking bills with a bills payables account The process for tracking accounts payable in Quicken looks like this e Add abills 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 v
29. ach vendor Quicken subtotals the amount you owe by month but as always you can customize the report to meet your needs Choose Reports menu gt Business gt Accounts Payable To see more detail about the transactions in the accounts payable summary report create a transaction report 1 Choose Reports menu gt Cash Flow gt Transaction Click Customize Use the same date range as for the accounts payable summary report In the Subtotal By list select Payee uu F amp F W N Click the Accounts tab and check to make sure the bills payables account is the only one included in the report Click All Accounts on the left and then click Clear All Click Business on the left and then select only your bills payables accounts 6 Click the Advanced tab 7 In the Advanced tab select Not Cleared status and Newly Cleared status 8 Click OK 48 Managing cash flow income and expenses 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 amore focused way 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 y
30. ale goods 28 Managing accounts receivable invoices 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 6 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 an invoices receivables account 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 California San Bernadino and Sonoma For San Bernadino County the sales tax rate is 7 75 percent you would set up a Sales Tax liability account with that rate Tax breakdown Tax rate San Bernadino 0 50 State of California 7 25 7 75 Total sales tax percentage The sales tax rate for Placerville County breaks down this way Tax breakdown Tax rate Sonoma County 0 25 State of
31. atement P amp L A profit and loss statement also called an income statement 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 1 Choose Reports menu gt Business gt Profit amp Loss Statement 2 Click Customize 3 Set the date range to cover the period you want 4 Thereport default is for cash basis bookkeeping If you use accrual basis bookkeeping click the Advanced tab and then under Report Basis 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 Err TN accrual basis Date Range Year to date fom 17172003 E to 7 16 2003 m accounting choose SANS Ji i Eain Canes Accrual as Transactions the Report Amounts All v Basis M Not cleared Incl ized gai T Include unrealized gains Po News
32. 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 receive the bill not when you pay it Change your settings 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 2004 3 Which chapters should you read Quicken Premier Home amp Business is designed to help you track almost all aspects of small business cash flow and profitability 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 c
33. ccount balance as of the beginning of the report A negative balance means that you are out of cash as of that date y nD WwW A 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 Reports menu gt Cash Flow gt Banking Summary 2 Click Customize 3 Set the date range to cover from tomorrow forward 4 In the Organization list choose Cash Flow Basis This lets you see transfers as part of the cash flow Quicken 2004 47 5 You can customize the sources and uses of cash report in these ways For sources 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 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 in only account balances in the Row list choose Accounts 6 Click the Accounts tab 7 On the Accounts tab select only your checking accounts invoices receivables accounts and bills payables accounts 8 Click OK 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 e
34. d use Quicken classes Here are some examples Business Examples of classes tracking a product line or farm enterprise Carpenter or crafts person with several Furniture product lines Toys Farmer Corn Soybeans Note For more information about classes see Tracking expenses should you use classes or projects on page 26 and Tracking projects jobs on page 20 For more information about tracking farm enterprises choose Help menu gt Contents click the Index tab and enter farm finances 14 Getting started and adding accounts Using classes when you enter transactions When you enter a transaction for any of the products lines jobs or clients 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 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 1 Productiop Rogers 2 Production Ellis 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
35. dress 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 QuickBooks if e Your accountant advises you to use double entry bookkeeping e You need to track product inventory or billable hours 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 physicians nonprofits retail sales or professional services Note For more information including information about a Web based version of QuickBooks see http 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 Quicken 2004 71 Quicken b
36. e 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 Follow the on screen instructions Click Help if you need more information 5 Quicken 2004 Premier Home amp Business JIMMY CHRIS BIZ Busi File Edit Tools Online Business CashFlow Investing Property amp Debt o B a a Back Forward Update Addresses TaxPlan Services Calc Quicken Home Business Center Click the Business Center tab for an overview of your business finances Account A R Accounts Invoices Customer Invoices Business Che 2 565 14 Business Cre 1 017 70 6 457 44 A P Accounts Bills _ M Business Bills v Cash Flow Center Joint Checking 1 529 00 Quicken Credi 20 00 1 509 00 Add Account Edit Accounts Click My Data if it is not already open and then scroll down to the appropriate section Click Add Account 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 Making business r
37. e 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 14 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 Job Quicken 2004 51 To learn more about project job reports choose Help menu gt Contents click the Index tab enter projects and jobs and select reports Summarize profit and loss for all classes If you have set up a class 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 t
38. elated credit card purchases on a personal credit card Writing business checks payable to cash Depositing business receipts directly into a personal checking account 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 aseparate bank account and make payments by check you can use your bank statement and canceled checks to back up your records Quicken 2004 7 Setting up business categories Quicken Premier Home amp Business 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 default 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 a line item from the Schedule C tax form Note To make it
39. en asks if you want to create a new one and helps you set it up 24 Managing accounts receivable invoices Peseta income i zi category to product sales SSS SS Be sure to use a category em Name Number The Volunteer s PR Handbook with the correct tax form Category Class Business Gross Sales EJ Cancel line item assigned to it in this case Schedule C Description Rion paea Help Gross Receipts or Sales see Setting up business categories on page 8 When you add taxable e e piese P E a 1 ercentage nactive prompts you for your local SSS sales tax rate and addsa sales tax account for you I Subtotal of the Preceding Items T Print Extra Blank Line 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 too many products to add each one 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 rep
40. endors 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 bills from vendors reports vendor report Adding a bills payables account Before you can enter bills from your vendors add a bills payables account 1 On the left side of your Quicken window in the Account Bar click the Business Center tab Click the My Data tab if it is not already open In the Business Accounts section click Add Account Select Bills Payables and then click Next Enter aname for the account and then click Next Click Done Quicken adds the account to the 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 no um A WwW N To learn about Search the Help Index for viewing the bills payables register accounts payable register opening editing a transaction in the bills payables accounts payable editing transactions register 40 Managing accounts payable bills 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 Inthe bills register click Create New and then select Bill 2 Enter the vendor name a
41. er or e mail the invoice Quicken updates your invoices receivables register to show the increase To create a new invoice choose Business menu gt Invoices and Estimates gt Create Invoice Quicken displays the Invoice dialog 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 Quicken 2004 23 In the Item field choose an Customer 5 Siero Project Job Panda Layout Invoice Default existing item invoice items list Saye and New or create anew Invoice Customer Invoices AnyTown Downtown Trust same dix 123 Center Street one AnyTown OH 43085 Cancel 5 30 2003 123456 Help i DESCRIPTION QTY RATE AMOUNT This Quicken Billable hour Business Cons hour rate 24 75 00 180000 user applied a Facilitation fee Business Other board retreat 1 200 00 200 00 Receive Pmt i Subtotal 2 000 00 nonprofit Nonprofit disc For 501 c agencies 15 00 300 00 Payment History discount for her services She entered herfees followed by a subtotal item followed by her discount item see Discounts special charges and subtotals on page 19 PR Handbook Business Gross Sales item 3 35 00 105 00 T Expenses Print E mail Clipboard Next Edit Ooue WNA 2 7 Subtotal w 7 750 1 805 00 8 14
42. er tax lines of the Schedule C e g dues and subscriptions credit and collections costs samples bank and credit card Fees sf Schedule C Other business expenses z Standard List C Extended List Apply Help 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 You can set up more at any time from the Category List 1 Choose Tools menu gt Category List 2 Inthe Category List window click New 3 Inthe Set Up Category dialog enter a name and indicate whether you will use it for income or expense transactions Examples are Rents Received Cleaning and Maintenance Commissions Insurance Management Fees Mortgage Interest Supplies Taxes Utilities Quicken 2004 11 4 Inthe Tax Line Item list select the appropriate Schedule E tax line assignment for the category you are adding and then click OK x Name JRentFromTenants Description Cancel Group Discretion J Help Type Income C Expense F Spending is not discretionary Subcategory of Business income 7 m Tas Tax Line Item Schedule E Rents Taxtelated S
43. er the name of the vendor and optionally select a project job 3 Inthe line item area enter the expense category and amount of the credit 4 Click Enter Quicken enters the credit in the bills payables register 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 Inthe bills payables register click Create New and then select Refund 2 Select the account into which you want to deposit the refund 3 Enter the vendor s name a project job optional and the amount of the refund 4 Optional If the refund was in the form of a check enter the check number for tracking purposes 5 Optional Use the Memo field to enter additional information about the vendor or to remind yourself about the reason for the refund 6 Click Enter Quicken records the refund in the account you selected and updates the bills payables register 44 Managing accounts payable bills Managing cash flow income and expenses Using reports to understand cash flow 46 Planning and forecasting your cash flow 49 Reporting on projects and jobs 51 Preparing for business income taxes 54 When you organize your business transactions in Quicken by project job or assign categories and classes to them you ve gota wealth of information at your fingertips The topics in this chapter show you how to use the features in Quicken to examine a
44. ers should you read 4 Which accounts will you need 5 Keeping business and personal data separate 6 Setting up business categories 8 Setting up classes 13 Managing accounts receivable invoices 17 Adding an invoices receivables account 18 Setting up items to include on invoices 18 Tracking projects jobs 20 Creating an estimate 21 Creating an invoice 23 Recording a payment from a customer 32 Creating accounts receivable reports 35 Managing accounts payable bills 39 Adding a bills payables account 40 Recording a bill 41 Paying a bill 42 Managing cash flow income and expenses 45 Using reports to understand cash flow 46 Planning and forecasting your cash flow 49 Reporting on projects and jobs 51 Preparing for business income taxes 54 Chapter 5 Chapter 6 Contents Tracking profitability and calculating equity 57 Using the Business Center 58 Tracking profitability 58 Creating a profit and loss statement P amp L 59 Tracking current assets 60 Tracking fixed assets and depreciation 61 Liabilities 64 Creating a balance sheet 64 Calculating equity 65 Resources for growing your business 67 Using QuickPayroll with Quicken 68 What can QuickPayroll do 68 Trying QuickPayroll for free 69 How QuickPayroll works with Quicken 70 Quicken business resources 72 Other business resources 73 Getting started and adding accounts How good record keeping benefits your business 2 Which bookkeeping method sho
45. es 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 Cash 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 a credit for returned goods 1 In the invoices register click Create New and then select Credit 2 Enter the customer name the job if applicable items returned and any additional information 3 Print the credit memo for the customer or e mail it 4 Click Enter Quicken associates a credit with that customer s name so that when you enter the customer s name in the Customer Payment dialog the credit is displayed in the Existing Credits field To record a credit and issue a refund for returned goods 1 Inthe invoices register click Create New and then select Credit 2 Enter the customer name items returned and any additional information 3 Click Refund 4 In the Refund dialog enter the account from which you want to pay the refund and any additional information Click Enter 5 Inthe invoices register select the credit click Form and then click Receive Pmt The Customer Payment form shows the amount of the
46. 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 asa reimbursable expense If only part of the transaction is reimbursable you can identify the appropriate line in the Split Transaction dialog or the Bill dialog Quicken displays an E to show that this 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 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 ip Online Report Options How Do I Date Num Payee Payment Clr Depost Balance Category Memo Exp 6 16 2003 ATM Red Barn Glazing 500 00 6 266 72 Biz Maintenance 6 22 2003 ATM USPS Biz Postage 6 30 2003 220 Offfice Barn
47. 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 59 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 Don t forget the interest is probably tax deductible Because this is a new loan you are either receiving money to deposit in your checking account or receiving anew 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 1 Choose Reports menu gt Business gt Balance Sheet 2 Click Customize 3 Set the date for the report 4 Optional If you track personal and business accounts in the same datafile click the Accounts tab and select only your business accounts Click All Accounts on the left and then click Clear All Click Business on the left and then click Mark All 5 Click OK 64 Tracking profitability and calculating equity
48. 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 67 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 ensure that your payroll tax rates are in compliance with changing federal payroll tax withholding rates For information about using the free trial version see Trying QuickPayroll for free on page 69 See the QuickPayroll Web site for a product demo and more information including how to subscribe Annual subscription fees apply Go to http 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 see the QuickBooks Web site for more information at http www quickbooks com payroll 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 a
49. he Business Center tab to see e Unpaid invoices e Billsdue e Agraph showing the status of your business e Access to business related activities such as accounts payable accounts receivable invoices bills statements payroll and reports e Links to small business Web sites e Links to other business tools and services such as business planning information about running a business or receiving payments online Quicken some 4q Business Center 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 Cash Flow Center Quicken Credit Card 102 00 102 00 A P Accounts Bills Show Full Graph Show Expense Report 4 View Last Month 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 64 58 Tracking profitability and calculating equity Creating a profit and loss st
50. he Customer Payment dialog 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 can apply the down payment amount The next time you enter this customer s name in the Customer Payment dialog box Quicken displays the prepaid amount in the Existing Credits field Click Apply Existing Credits to apply it to an outstanding invoice 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 18 for more information about using an invoices receivables accounts You make a holding account to track the money until you deposit them 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 Quicken 2004 33 For cash register sal
51. information about managing customer contact information choose Help menu gt Contents click the Index tab enter Address Book and select overview of 3 From the Status drop down list select a status for your project job If the status you want isnot in the list click New Edit to create your own status flag or change an existing one 4 Optional Add a description of the project job 5 Set important dates for your project job 6 Click OK If you create a new invoice or estimate before creating anew project job Quicken will open the New Project J ob dialog and you can fill it in as described above 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 estimate 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 choose Business menu gt Invoices and Estimates gt Create Estimate Q
52. ith classes 26 tracking with the Project Job List 26 columns renaming 30 comparison report 46 corporation 66 credit from vendor 44 credit memos issuing a credit 34 issuing a refund 34 layout 30 76 Index credit to customer for returned goods 34 current assets defined 60 customer payments handling partial payments 33 tracking 32 customer sales report 37 customizing forms See designing forms D data file setting up for business 6 depreciation example 61 in asset account 62 recording 62 designing forms 30 disbursements reporting on 47 discountitems 19 E E displayed in register for expenses 27 employee employer relationships 72 equipment depreciating 61 equity calculating 66 on balance sheet report 64 tracking 65 estimates converting to invoices 22 creating 21 example 22 itemizing products and services 21 layout 30 QuickBooks Pro feature 71 expenses assigning to customers 27 comparing for different periods 46 reporting forasingle class 52 reporting for all classes 51 reporting for all projects jobs 51 tracking with classes 51 expenses and income dividing a bill among product lines 52 on profit and loss statement 59 sample report fora single class 53 tracking with categories 13 F farm enterprises tracking 14 finance charge items 19 Financial Calendar 49 financial planning 49 fixed assets defined 61 depreciating 61 recording thefts orlosses 63 selling 62 tracking value 62 forecasting
53. izooz 572002 612002 712002 82002 92002 eo Business Credit Card Credit Help Future Financial Events click Sales Tar Liab eo Business Loan Liab Events on Graph One year 2 C show all lt lt Prev Next gt gt Annual One time Mark All Clear All M Show Hidden Accounts 50 Managing cash flow income and expenses 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 J ob Report by Project For more information about the Project ob List see Tracking projects jobs on page 20 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 transactions on page 15 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 singl
54. late discounts on invoice items An invoice item is any product or service that you sell at a per item or hourly rate It can also be one time charge 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 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 71 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 select the Percentage check box and enter a negative percent i
55. le 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 fora 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 27 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 orjob you don t invoice forthose 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 Or a 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 res
56. lete 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 J anuary 2001 for 15 000 By J anuary 2003 the equipment may have depreciated by 40 percent of its original value or 6 000 Therefore the value of the equipment in J anuary 2003 is 15 000 original cost 6 000 accumulated depreciation 9 000 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 Quicken 2004 61 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 Give it a meaningful name such as Equipmt Set it up with an opening balance equal to either its purchase price on the purchase date to track depreciation over the life of the asset or its current value as of today s date to track depreciation from today forward
57. ly to assign it to the category you selected BEE New Edit Delete Report Print Options How Do Iv Category Type Description Group v Display All Categories Vision Exam Sub Non Discretionary Display Income Categories tists ho 21 Miscellaneous Expense Discretionary Display Expense Categories Public Transportation Expense Non Discretionary Display Transfer Accounts Rent Expense Housing Rent Non Discretionary Display Tax telated Categories Biz Expense Small Biz Advertising Sub Small Biz v Show Description Bad Debt Sub Small Biz v Show Category Group om sales COGS5 purchases for resale Sub Small Biz v Show Tax Item ost of G Dues and Subscriptions Sub Small Biz it Education Sub Small Biz Assign Category Groups A Gifts Business E EE ai Categories expo Interest expense Sub Small Biz SUE CIMETEST Expense ot Legal and Professional Fees Sub Small Biz A Schedule C Legal and profession Meals and Entertainment Sub Small Biz eo Schedule C Meals and entertain Mortgage Interest Sub Small Biz 4 Schedule C Interest expense m Office Sub Small Biz oa Schedule C Office expenses Property Sub Small Biz o Schedule C Taxes and licenses Repairs Sub Small Biz Form 8829 Repairs and mainten j Tax Line Item Assignment Audit my Tax Categories Why do need Tax Line Items Category eie Gifts Business Si The cost of other expenses directly l related to the business that may not be Tax Item applicable to the oth
58. ment to Vendor tenn shows Payment to Vendor the vendor name and unpaid balance aa Vendor Molotsi s Copy Center LJ you owe this 7 vend or plus the Withdraw From Business Checking amount due on the Printing for Fundraiser specific bill you Amount 2 017 10 opened for ee ite a El payment Cow Bees 42 Managing accounts payable bills 3 Inthe Payment to Vendor form check that the Vendor Name is correct 4 Select the account to withdraw the payment from 5 Selecta payment method e f you want to schedule a transaction enter a future date and then select Scheduled Transaction Click Enter When you open Quicken on or after this date Quicken either reminds you to pay the bill or enters it in your register for you whichever you specify e Ifyou want to pay with a register transaction continue with steps 6 through 10 6 If you select Register Transaction Quicken displays a list of your outstanding bills from this vendor in the lower half of the Payment to Vendor form Select the bills this payment should apply to 7 Click Enter Check that the vendor name is tin 2 ee ee correct Vendor Molotsi s Copy Center L Click here to choose the bills this Outstanding Bills payment applies to Project Job Publicize G Write Traini Fundraiser eo 16 1 2004 eo 16 4 2004 8 Optional Enter the payment amount Quicken applies it
59. much the individual income and expense amounts contribute to total income and total expenses select the Amount as check box Optional 6 Click the Accounts tab and then select the accounts you want to include in the report 7 Click the Classes tab and then in the Class Contains list select the class you want 8 Click OK 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 loj x Copy Preferences How Do I gt Date Range Custom Date Column Month X Save Report Customize Print Banking Summa Report History g y r 6 1 2003 Through 7 16 2003 Banking Summary 6 1 2003 7 1 2003 OVERALL Category Description 6 30 2003 7 16 2003 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 Legal And Professional 400 00 0 00 400 00 Rental Expenses Cleaning and Maintenance 300 00 350 00 650 00 Management Fees 400 00 400 00 800 00 Taxes 1 200 00 0 00 1 200 00 TOTAL Rental Expenses 1 900 00 750 00 2 650 00 TOTAL EXPENSES 2 300 00 750 00 3 050 00 OVERALL TOTAL 1 000 00 Create a payment history for a single class 1 Choose Reports menu gt Cash Flow gt Transac
60. n Track profitability 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 and adding accounts Which bookkeeping method should you use Start off by choosing a bookkeeping method cash or accrual basis 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 that 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 see the small business and self employment pages of the IRS Web site at http www irs gov or talk to your accountant 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
61. n farm farm finances 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 A transaction with a single category Report Options How Do I N Payer a _ Payment Clr Deposit Balance A transfer es z5 i transaction Offfice Barn 350 00 5 766 72 Biz Supplies Quicken Credit Card 100 00 5 666 72 Credit Card Center City Small Biz Journal 245 00 Split fi panel advt Exp Split Transaction Enter multiple categories to itemize this transaction use the Memo field to rec A transaction with multiple categories 1 BizAdvertising 200 00 4 2 Biz Dues And Subscriptions N 145 00 3 4 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 or find the electronic version on your computer hard drive 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 Setting
62. n the Per Item Rate field The next time you want to discount any item enter the item as usual in the Invoice dialog and then add the Discount item in the line immediately following Quicken calculates the discount Follow the same steps for a surcharge or finance charge but enter a positive number for the Per Item Rate Quicken 2004 19 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 Tracking projects jobs The Quicken project job feature helps you track multiple jobs for a given customer For example a freelance 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 Ifyou manage several apartment buildings set up the building addresses as customers and the i
63. nd optionally the address 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 3 Optional Select a project job with which to associate the bill 4 Optional Quicken displays today s date you can change it if necessary 5 Enter the expected date of payment in the Due Date field 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 Optional Enter a purchase order number for tracking purposes Select an expense category from the list Enter a description of the service or item O ao N O Optional Click in the E reimbursable expenses column if this is an expensable item that you want to include on a customer invoice 10 Enter the amount thisbillisfor M x expenses incurred for Customer AnyTown Project Job Fundraiser Assign Project Job acustomer s projector job click Assign Project Job and then assign it to one from ete ie your Project J ob List identinyen Promo Package E expense as inyastions reimbursable 2 3 Next Edit Enter an expense category for each item on the bill 11 Click Create Payment to create a scheduled transaction or click Enter to record the transaction in the bills register If you add the transaction to your Scheduled Transaction List it is listed by the date on
64. nd 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 orona 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 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 e 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 68 Resources for growing your business 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 amou
65. nd classes to distinguish between business and personal transactions This is not recommended for tax reasons 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 In the Account Bar on the left side of your Quicken window click the Business Center tab Quicken opens the Business Center 2 Click the My Data tab if it is not already open Quicken displays the data view including any accounts you have already added 6 Getting started and adding accounts 3 Scroll down to the appropriate section and then click Add Account Business Accounts Accounts receivabl
66. nd use the data that you ve collected You ll learn how to e 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 45 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 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 Reports and Graphs In the Reports and Graphs Preferences dialog 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 2 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
67. ndividual apartments as projects jobs e If you 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 To see the List choose Business menu gt Business Lists gt Project J ob List Project Job List E 0 x New Edit Delete Sortw Print Options How Do I Customer lt ai gt x Select account lt a Accounts gt x Customer Project Job Status Start Date Proj End ActualEnd Description Total AnyTown Pasta J w Publicize Grand Ope In Progress 12 1 2003 12 31 2003 new manageme 4 500 00 Estimate 101 7 040 00 In 05 900 00 inal Write Promo Materials Closed 9 1 2003 11 30 2003 11 30 2003 for potential inv 20 800 00 E 102 5 200 00 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 51 20 Managing accounts receivable invoices Create a project job To create a new project job 1 Choose Business menu gt Customers gt Create Project J ob 2 Inthe Customer field select a customer from the drop down list or type in anew one For more
68. ns Macromedia Flash Player software by Macromedia Inc Copyright 1995 1999 Macromedia Inc All rights reserved Macromedia and Flash are trademarks 7 of Macromedia Inc macromedia FLASH ENABLED All other product names company names trademarks and service marks are the property of their respective owners and should be treated as such Some names company names and 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 Copyright 2003 Intuit Inc All rights reserved 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 financial services including but not limited to online account services online banking online investing transaction download online payment online bill presentment and online tax preparation whether offered by Intuit orthird parties are available only in the United States and require Internet access These services may vary from participating financial institutions and may be subject to application approval terms conditions and additional fees Chapter 1 Chapter 2 Chapter 3 Chapter 4 Contents Getting started and adding accounts 1 How good record keeping benefits your business 2 Which bookkeeping method should you use 3 Which chapt
69. nts for and prints on Forms W 2 and W 3 QuickPayroll also e Provides a variety of preset reports to give you quick and easy access to your payroll information e Lets you create your own versions of reports you can customize both the content and format e Exports report data to a Microsoft Excel spreadsheet e 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 Trying QuickPayroll for free You can install QuickPayroll from your Quicken Premier Home amp Business CD ROM and use it free for the first 30 days Choose Business menu gt Quicken Services gt Track Business Payroll Taxes 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 info
70. o 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 54 Managing cash flow income and expenses 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 information 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 e A Schedule C report lists transactions for Schedule C subtotaled by tax line item Choose Reports menu gt Business gt Schedule C e A tax summary report lists all your tax related transactions grouped and subtotaled by category Choose Reports menu gt Tax gt Tax Summary e A tax schedule report lists all your tax related transactions g
71. oice 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 On the left side of your Quicken window in the Account Bar click the Business Center tab Click the My Data tab if it is not already open In Business Alerts section click Set up Alerts Click the Setup tab Under General 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 to clear it 6 Click OK To learn more about alerts choose Help menu gt Contents click the Index tab enter alerts and select overview of un A WwW N 36 Managing accounts receivable invoices 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 1 Choose Reports menu gt Cash Flow gt Banking Summary Click Customize Enter a title such as Sales by Customer and enter a date range From
72. ome 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 For more information about the different organizational structures available for small businesses choose Business menu gt Small Business Guidance and then Under Start amp Run a Small Business click Legal Forms of Business See also the small business pages of Quicken com at http www quicken com small_ business 66 Tracking profitability and calculating equity Resources for growing your business Using QuickPayroll with Quicken 68 How QuickPayroll works with Quicken 70 Quicken com resources 71 Intuit checks stationery forms and supplies 71 When should upgrade to QuickBooks 71 Quicken business resources 72 Creating a business plan 72 Finding legal personnel and tax guidance 72 Managing contact information 73 Other business resources 73 The Small Business Administration SBA 73 Other small business organizations 74 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 bea challenge besides the complexity and potential
73. on page 51 and Tracking expenses should you use classes or projects on page 26 printing 45 50 binding Quicken 2004 15 16 Getting started and adding accounts Managing accounts receivable invoices Adding an invoices receivables account 18 Setting up items to include on invoices 18 Tracking projects jobs 20 Creating an estimate 21 Creating an invoice 23 Recording a payment from a customer 32 Creating accounts receivable reports 35 You can use Quicken 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 Use an invoices receivables account to help you track amounts your customers owe you The process works like this Add anew Quicken invoices receivables account e Set up invoice items for the products and services you sell e Set up the projects you want to track e Create estimates in the Estimates dialog e Create invoices in the Invoices dialog e Record customer payments Quicken matches payments to the corresponding project job o
74. orts 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 accounts 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 2004 25 Scheduling future invoices By arranging to handle transactions ahead of time you can have Quicken remind you before they re due or record them for you Set up future transactions by adding them to the Scheduled Transaction List or to the Financial Calendar For example you can schedule recurring transactions that you request payment for at the same time every month such as payment from renters 1 Choose Cash Flow menu gt Scheduled Transaction List 2 Click Create New and then choose Invoice 3 From the Account to use drop down list select an existing invoice account 4 Enter the invoice details 5 Click OK to set up the scheduled invoice For more information about scheduling transactions choose Help menu gt Contents click the Index tab enter invoices and select scheduling Tracking expenses should you use classes or projects
75. otential 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 Instant overview of cash flow Track checking and credit card expenses plus accounts receivable customer invoices accounts payable bills and reimbursable expenses 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 When you get the job click again to convert the estimate into an invoice 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 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 butto
76. ou 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 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 partnership 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 inc
77. ou 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 it in the specified account at the scheduled time whichever you specify To schedule a transaction 1 Choose Cash Flow menu gt Scheduled Transaction List 2 Click Create New and then select a transaction type 3 Inthe Create Scheduled Transaction dialog fill in the appropriate fields 4 Click OKto set up the scheduled transaction Note that transactions scheduled later than today are not yet entered in your register You can view them on the Financial Calendar on the Quicken Home page in Bills and Scheduled Transactions or in the Scheduled Transaction List To learn more about scheduling transactions choose Help menu gt Contents click the Index tab enter scheduled transactions and select overview of Forecasting 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
78. ould 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 expenses 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 Which accounts will you need on page 5 and Setting up business categories on page 8 in this chapter Chapter 2 Managing accounts receivable invoices Chapter 3 Managing accounts payable bills Chapter 4 Managing cash flow income and expenses Chapter 5 Tracking profitability and calculating equity Chapter 6 Resources for growing your business 4 Getting started and adding accounts Which acc
79. ounts 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 for payments from customers 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 6 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 2 Managing accounts 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 18 Add one bills payables account for each business you track in this data file See Chapter 3 Managing accounts payable bills Quicken adds a sales tax account for
80. r business 45 mileage tracking 56 money borrowing 64 N National Association for the Self Employed NASE 74 O overpayments 34 overview managing your business with Quicken 45 owners business 66 P partial payment 33 partnership calculating equity for 66 defined 66 payment history report creating 35 multiple jobsor clients 54 Payment to Vendor Form 42 78 Index payments from customers depositing in a holding account 33 entering retainers and down payments 33 partial 33 receiving 32 payments to vendors See accounts payable payroll QuickPayroll 67 tasks handled by QuickPayroll 68 planning business finances 49 writing a business plan 72 product lines tracking 14 products adding to the item list 19 handling for resale 28 ordering from Intuit 71 profit and loss creating a statement 59 60 tracking 58 project job report creating 51 creating by project 51 projects jobs creating 20 21 definition 20 example 20 Project Job List 20 tracking 20 tracking expenses 26 tracking with classes 26 when to track 20 property depreciating 61 proposals QuickBooks Pro feature 71 Q QuickBooks trial version 71 upgrading from Quicken 71 using with QuickPayroll 68 Quicken backing up QuickPayroll data 70 setting up to track a business 5 8 starting QuickPayroll 70 upgrading to QuickBooks 71 using for managing your business 45 QuickPayroll backing up data 70 defined 68 Internet access 68 list of payroll task
81. r 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 On the left side of your Quicken window in the Account Bar click the Business Center tab Click the My Data tab if it is not already open In the Business Accounts section click Add Account Select Invoices Receivables and then click Next un A W N Enter a name for the account click Next and then click Done 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 23 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 Set up an item for any of the following e 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 18 Managing accounts receivable invoices To set up anew item choose Business menu gt Invoices and Estimates gt Invoice Items Invoice items can include products or services You can also set up discount items that are used to calcu
82. ransaction 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 Delete Find Transfer Reconcile Write Checks Set Up Online Date A Num Payee Payme Category Memo Exp 6 9 2003 215 French Feed And Grain Split gZ Exe Split Transaction Use this window to itemi 1 EE 2 Fertilizer Sopbean To see areport that shows income and expenses with separate columns for each class you can create a profit and loss statement by class 1 Choose Reports menu gt Business gt Profit amp Loss Statement Click Customize Enter the date range you want the report to cover In the Row list select Class Click OK If you move your pointer over the report totals the pointer turns into amagnifying glass when details are available Double click to zoom in on the details un F amp F W N 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 1 Choose Reports menu gt Cash Flow gt Banking Summary 2 Click Customize 52 Managing cash flow income and expenses 3 Set the date range to cover the period you want 4 Inthe Column list select Month 5 To add a column showing how
83. res business cards or other promotional material Do not include advertising costs incurred to influence ial 8 Getting started and adding accounts The default business categories If you need to reload your categories for any reason follow these steps 1 Choose Tools menu gt Category List Quicken displays the Category List Click the Options button and then from the drop down menu choose Add Categories Quicken displays the Add Categories dialog In the Add Categories dialog in the Available Categories list choose Business Quicken displays business categories in the list on the left In the 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 Click the Add button in the middle of the dialog Quicken moves your selected categories to the Categories to Add list on the right side of the dialog 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 2 Choose Tax menu gt Deduction Finder In the Choose a Deduction Type list choose Self Employed and then follow the on screen instructions To learn
84. rmation about how to subscribe to QuickPayroll or to request a replacement copy of the QuickPayroll CD ROM visit http www intuit com quickpayroll Quicken 2004 69 How QuickPayroll works with Quicken To start QuickPayroll from within Quicken Premier Home amp Business choose Business menu gt QuickPayroll 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 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 a paycheck 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
85. rom the Estimate List or save it for reuse 1 Choose Business menu gt Business Lists gt Estimate List 2 Select the estimate you d like to convert and click Convert on the toolbar 3 From the Convert it to the following account drop down list select an existing invoice account 4 Indicate 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 5 Click OK to convert the estimate to an invoice Here s an example of a completed Convert Estimate to Invoice dialog 22 Managing accounts receivable invoices Select the account in which you xj want the invoice to appear i Customer AnyTown Downtown y Project Job Indicate whether you want to eRe oar cele save this estimate for later use or l l Help delete it from the Estimate List Convert it to the following account Customer Invoices gt After conversion gt 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 custom
86. rouped 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 a specified period Choose Reports menu gt Tax gt Capital Gains e The investment income report for reporting on Schedule B shows dividend income taxable and tax exempt interest income taxable and tax exempt capital gains distributions 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 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 Quicken 2004 55 You can import this mileage information directly into TurboTax see Preparing for business income taxes on page 54 You can also track tax deductible parking and tolls Note Whether you can deduct mileage from your taxe
87. s 68 starting from Quicken 70 trial period 69 using with QuickBooks 68 using with Quicken 67 quotes QuickBooks Pro feature 71 R rates mileage 56 salestax 25 receivables See invoices record keeping 7 reports 2 setting up 2 using categories 13 records needed for an audit 7 recurring invoices scheduling 26 recurring transactions scheduling 49 Refund Form 44 refunds 34 foroverpayment 34 from vendors 44 issuing for returned goods 34 registers invoices receivables 18 reimbursable expenses 27 rent scheduling payment 49 reports accounts receivable 35 balance sheet 64 capital gains 55 cash oraccrual 46 cash receipts and disbursements 47 comparison 46 customer payment history 35 customer sales 37 depreciation 62 expenses forasingle class 52 expenses for all classes 51 forecast cash flow 49 income forasingleclass 52 income for all classes 51 income for all projects jobs 51 income statement 59 investment income 55 memorizing 36 profit and lossstatement 59 project job 51 project job by project 51 sources and uses of cash 47 tax schedule 55 taxsummary 55 tax related 55 unpaid balances by customer 35 using categories for 13 when borrowing money 64 resources in Quicken 72 Intuit s web site 71 onthelnternet 74 small businessowners 74 retainers 33 returns issuing credit 34 RISEbusiness 74 S sales by customer report 37 sales forms See estimates Quicken 2004 79 sales forms See invoices sales tax
88. s 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 entering transactions in Quicken accounts Enter all mileage information in the Vehicle Mileage Tracker 56 Managing cash flow income and expenses Tracking profitability and calculating equity Using the Business Center 58 Tracking profitability 58 Creating a profit and loss statement P amp L 59 Tracking current assets 60 Tracking fixed assets and depreciation 61 Liabilities 64 Creating a balance sheet 64 Calculating equity 65 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 e Cash you have on hand e 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 e Equipment e Property 57 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 In the Account Bar click t
89. s 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 2 3 Choose Business menu gt Vehicle Mileage Tracker Enter the dates of the trip 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 three years after you buy Quicken To download current rates choose Tools menu gt One Step Update Enter the purpose for the trip your destination and the vehicle you drove 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 If you paid for parking and or atoll enter the total value for all chargesin the Parking amp Toll field If you 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 Click Record Trip 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 mile
90. tandard Line Item List Extended Line Item List 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 xl Payment for the use or occupation of property i Categories for farm finances Repeat the steps in the preceding section but in the Set Up Category dialog click to display the 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 Expenses and more Note Always confirm your choices by consulting with your accountant or tax professional For more information see the small business and self employment pages on Quicken com and the IRS Web site http www quicken com taxes e http www irs gov To learn about Search the Help Index for tracking tax related expenses and assigning categories tax related transactions tax schedule information to categories double checking the tax form information Tax Category Audit you assigned to categories 12 Getting started and adding accounts To learn about Search the Help Index for handling transfers betwee
91. the Payment to Vendor dialog You can use the bill s due date or you can specify an earlier due date to allow for delivery time On the day Quicken 2004 4 it s due Quicken either reminds you or enters it in your register for you depending on what you specify Click Enter only if you enter payments and bills at the same time If you have already entered several bills you can apply the payment to a different bill from the same vendor Select the one you want by clicking Clear Pmts clear payments and then click the Pay column next to the correct bill 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 When you pay a vendor use the Payment to Vendor dialog 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 From the bills payables register select the bill you want to pay and click Form Bills Business Bills Register Overview Create New v Delete Project Job List Find Report Options Printw How Do I Date A Number vendor Due Date Billed Clr Paid Balance Type Category Memo Exp Molotsi s Copy Center 8 1 2003 300 00 800 00 A reimbursable e E Enter Edit Form Click Form to open the bill 2 Click Create Payment The Pay
92. the Row list choose Payee un F amp F WwW N Click the Accounts tab and select only your invoices receivables accounts Click All Accounts on the left and then click Clear All Click Business on the left and then select only your invoices accounts 6 Click the Advanced tab Then from the 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 7 Click OK 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 1 Choose Business menu gt Invoices and Estimates gt Print Statements 2 Selecta layout from the list 3 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 e If you choose Selected click Choose and then select the customer names from the list 4 Select
93. tion 2 Click Customize Quicken 2004 2 250 00 3 250 00 53 3 Set the date range to cover the period you want 4 To create a payment history by period select the period in the Subtotal By list 5 Click the Accounts tab and then select the accounts that you want to include in the report 6 To limit the report to one job click the Classes tab and then select the class for the client project or job you are interested in 7 Click the Advanced tab In the Transaction Types list select Deposits 8 Click OK Create a payment history for multiple classes Choose Reports menu gt Cash Flow gt Transaction Click Customize Set the date range to cover the period you want In the Subtotal By list select Class un F amp F WwW N e Click the Accounts tab and then select accounts that you want to include in the report 6 Click the Classes tab and then click Mark All 7 Click the Advanced tab In the Transaction Types list select Deposits 8 Click OK To track accounts receivable see Chapter 2 Managing accounts receivable invoices on page 17 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 t
94. ts 35 setting up 18 accrual basis accounting 3 Address Book using 73 address company 30 advance payment 33 aging information 36 alerts unpaid invoices 36 asset accounts fixed assets 62 tracking receivables 23 assets and liabilities 65 current 60 examples of 57 fixed 61 on balance sheet report 64 purchasing 62 recording depreciation 62 recording thefts or losses 63 selling 62 audits record keeping 7 B balance sheet 64 benefits of using Quicken 2 billing customers See estimates billing customers See invoices bills payables See accounts payable bookkeeping cash or accrual 3 borrowing money 64 Business Center defined 58 business development Service Corps of Retired Executives SCORE 73 Small Business Development Centers 73 Small Business Information Centers 73 75 business finances separating business from personal 6 business owners calculating equity 66 business plan purpose 72 tools 72 business products overview 67 C canceled orders 34 capital gains reports 55 cash flow forecasting 49 cash receipts reporting on 47 cash sales tracking 33 cash basis accounting 3 categories assigning to transactions 13 tax related 54 tracking income and expense 8 chart of accounts 5 checking account setting up for business use 6 classes assigning to transactions 15 itemizing transactions 53 tracking clients 26 tracking projects jobs 26 use for invoicing 51 using 14 clients tracking w
95. ts reports customizing accounts receivable report accounts receivable reports 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 Reports menu gt Cash Flow gt Transaction 2 Click Customize and enter a title for the report for example Customer Payment History 3 From the Sort By list select Payee Quicken 2004 35 4 Click the Accounts tab and select only your invoices receivables accounts Click All Accounts on the left and then click Clear All Click Business on the left and then select only your invoices accounts 5 Click OK If you think you ll be running this report on a regular basis click Y A Save Report and tell Quicken to save it on the Business Center In the future you can select it from the Business Center under My Reports Quicken uses your customized settings To create a report that shows your receivables by week follow the previous steps From the Subtotal By list Display tab select Week Displaying a list of unpaid invoices To see a list of unpaid invoices choose Business menu gt Business Lists gt Unpaid Invoices List Quicken shows you the amount of each invoice the balance aging information and the total amount of all your unpaid invoices Double click a customer name to see the inv
96. uicken displays the Estimate dialog Quicken 2004 21 Here s an example of a completed estimate Choosea estimate EEE xl customer Customer PryTown Downtown Tuv Project Job Fundraiser C Layout Estimate Default fe and project from e timate the drop down 4 4 2003 aa 101 Save and New Menus AnyTown Downtown Trust _Seve endow 123 Center Street AnyTown OH 43085 Cancel Quicken fills in nee the customer DESCRIPTION QTY PATE AMOUNT information 1 Billable hour Business Cons hourly rate 36 75 00 2 70000 from your 2 Facilitation fee Business Dther Flat fee 1 200 00 200 00 3 Subtotal 2 900 00 Customer List 4 Nonprofit disc For 501 c agencies 15 00 435 00 5 PR Handbook Business Gross Sales item 1 35 00 35 00 T 6 Enter invoice F Naag ERS items here You 3 Pink can also createa 10 z new one just Subtotal 2 500 00 E mail Clipboard Customer Message Tax 77507 27 type a new l look forward to working with you A ni ER name and follow Total 250271 the instructions Memo PR Jevitalzation project Tax Account Sales Tax 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 f
97. uld you use 3 Which chapters should you read 4 Which accounts will you need 5 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 learn 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 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 Any time you communicate with bankers partners advisors or p
98. usiness 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 e It helps 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 tlets you clearly define your management plan look at your own strengths and weaknesses and decide what salaries and benefits you ll offer e t 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 Asa business 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 Mini
99. y 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 From the list of outstanding invoices choose the one to which this payment applies Customer Payment Outstanding Invoices Project Job Fundraiser Strategic PI Pay Date wv 14 1 2004 Amt Due 1 719 34 Number Orig Amt Due Date 1 899 34 6 4 2004 2 502 71 6 4 2004 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 32 Managing accounts receivable invoices 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 t

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