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Posted by slb on September 23, 2007, 12:32 am
Please log in for more thread options Then do yourself a favor - create a single asset account. Keep It Really Simple
Stupid. Dump all your asset
transactions in the ONE account. That way you don't have to trouble yourself
with such complicated balancing
and reporting concepts I'm a power user and have used Quicken since the early
DOS days. I ELECT to conform
to GAAP to a certain extent. THAT'S WHAT WORKS FOR ME. Obviously, it doesn't
work for you. That's the great
thing about Quicken, it allows you to balance your checkbook or all your
accounts. YOU DECIDE.
End of discussion. It's been mildly interesting.
sharx35 wrote:
> > Just because a solution doesn't meet your needs doesn't, by default, make it
stupid. Bill asked a
> > question,
> > one of the key purposes of this forum. Fred offered a solution. I offered
another solution. You didn't
> > like
> > mine, so in the process of reiterating Fred's solution you bashed a
completely legitimate approach. I
> > didn't
> > force anyone to use my TWO account solution, I simply offered it as an
alternative.
> >
> > Take a look at the balance sheets and P&L statements of any publicly held
(and most privately held)
> > companies. They all account for assets and depreciation this way. It makes
the transactions "cleaner"
> > and
> > conforms to GAAP. It's also more effort to maintain TWO accounts. Since
Quicken is not a true double
> > entry
> > accounting system, it will allow you to charge transactions back to the same
account.
> >
> > I didn't realize you were speaking for "most" when you pontificated the ONE
account solution. I only
> > saw you
> > speaking for yourself.
> >
>
> There is NO requirement or necessity to worry about GAAP when using Quicken.
Power users would be using
> Excell or Simply Accounting or any other of a number of higher powered
accounting software available. For
> PERSONAL accounting, ONE account, per asset, works find and dandy. Unless one
has OCD, of course.
>
> >
> >
> > sharx35 wrote:
> >
> >> >I made that very statement (one account would work) in the 4th paragraph
of my response. I use 2
> >> >accounts
> >> > because of personal reporting preferences. There is no single correct
answer for a personal tracking
> >> > system.
> >> >
> >> > I also do it this way because when I owned my company the corporate
accounting system tracked assets
> >> > with
> >> > corresponding accumulated depreciation accounts and an offseting expense
account to track yearly
> >> > business
> >> > depreciation tax writeoffs.
> >> >
> >> > sb
> >> >
> >>
> >> Obviously, it fit your specific needs. For most, though, one account would
suffice. I use the KISS
> >> principle, Keep it Simple.......
> >>
> >> >
> >> > sharx35 wrote:
> >> >
> >> >> >I do something similar to Fred but a little more complicated. Take it
for what it's
> >> >> > worth. As Fred did, I post all the transactions to the same account
and click Yes
> >> >> > on the warning.
> >> >> >
> >> >> > I set up 2 asset accounts for each car. The first is called 99 Car
Name with an
> >> >>
> >> >> You only need to have ONE account per asset, i.e. ONE account per
vehicle. Start off with cost
> >> >> price,
> >> >> as
> >> >> you did in your first account, and simply insert depreciation, on an
annual basis in that ONE asset
> >> >> account. That way, your net worth is always accurate with only ONE
account needed per depreciable
> >> >> asset.
> >> >>
> >> >> > initial Increase entry for the total amount paid, say $20k. I also set
up a 99 Car
> >> >> > Name Deprec account. Each Jan 1 I calculate the remaining car value
and
> >> >> > depreciation from Edmunds or Kelly and enter a Decrease amount in
Deprec as the
> >> >> > prior year depreciation. On my net worth statement I have the original
amount minus
> >> >> > the accumulated depreciation leaving the "net" value of the car.
> >> >> >
> >> >> > I traded the car in this year and made a 2nd entry in the Car Name
account as a
> >> >> > decrease for the trade-in, $2k. Net cost $18k for 8 years. I also made
a
> >> >> > corresponding Decrease entry in Deprec, in this scenario $1,800 to
"balance" so the
> >> >> > sum of the two accounts is now zero. In this case I traded the car for
$200 more
> >> >> > than it's calculated "value."
> >> >> >
> >> >> > You could potentially put the yearly depreciation charge in the
original asset
> >> >> > account but I like to see the values separate on my net worth reports.
To be even
> >> >> > more OCD, I make a 0 amount entry in the Car Name asset account each
Jan 1 called
> >> >> > mileage and put the current odometer reading as a memo item. I have a
spreadsheet
> >> >> > that goes back 12 years with cost per mile numbers for each of our
many cars. Not
> >> >> > extremely useful but fascinating trivia.
> >> >> >
> >> >> > This time though it showed me the cost per mile increasing as I
started to incur
> >> >> > some repair costs over the past 2 years. Made the decision to trade a
year earlier
> >> >> > than normal as I ignored this warning in the past and got burned on 2
cars.
> >> >> >
> >> >> > Hope this helps.
> >> >> >
> >> >> > sb
> >> >> >
> >> >> >
> >> >> > Fred Smith wrote:
> >> >> >
> >> >> >> Personally, I would use the same account. You can zero out the old
balance with
> >> >> >> a transaction which posts to the same account (you'll get a warning,
but say
> >> >> >> Yes). Or do a balance adjustment. You won't see any income or expense
with this
> >> >> >> entry.
> >> >> >>
> >> >> >> --
> >> >> >> Regards,
> >> >> >> Fred
> >> >> >>
> >> >> >> > Just got a new car, with trade in of old. Dont want this to show up
as
> >> >> >> > any type of income when i zero out old car. Have old car setup as a
> >> >> >> > property asset and a property liability because of the loan. If i
> >> >> >> > lower the asset account to match the amount left on the loan and do
a
> >> >> >> > transfer, would that do it?? Need to also setup new loan account
for
> >> >> >> > new car ==should i also setup a asset account for it??
> >> >> >> >
> >> >> >> > Anybody done this?? Whats the best way??
> >> >> >> >
> >> >> >
> >> >
> >
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