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Posted by Jo on September 3, 2008, 1:33 pm
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I have recently started using Quicken H&B and was able to download
transactions back to the beginning of the year with the exception of
bank accounts which are only available from June 1 to present.
With a startup, we have some checks that were written that I need to
record, however, do I really need to manually enter all the
information from the bank statements or only the tax related items.
And how do I deal with the "beginning balance" that quicken assigned
to these accounts based upon the downloaded information.
I assume that I need to put any tax related information into this file
so that when I transfer it to turbotax to do my taxes next year, I
have all info in one place.. I assume that TTax gives me an oportunity
to add additional expenses to my C form..yes it is my first time to
fill one out so I new to the business software side of TTax.
thanks for any advice.
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Posted by R. C. White on September 3, 2008, 10:58 pm
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Hi, Jo.
> do I really need to manually enter all the
> information from the bank statements or only the tax related items.
We can't answer that until you define your goals for us. Since you are
using the H&B version of Quicken, and since you expect to file Schedule C, I
assume that you are accounting for a business - and probably for
non-business transactions, too.
The IRS doesn't require you to keep any books, unless you are a corporation.
They do require that you present accurate information on your returns, and
be prepared to back it up if requested. How you get that accurate
information is up to you.
But any business manager needs reliable information to manage the business.
That's why there were accountants and accounting systems long before there
was an income tax. Even now, preparing the tax return is only one of the
many reasons for good bookkeeping.
Who will read any financial reports that you prepare? Just yourself? And
the IRS? Your banker? Your partner? Make your accounting choices based on
who will need to know what. Design your system and make your entries to
satisfy those needs. But don't be shortsighted. Just because you don't see
a need today doesn't mean that you shouldn't be prepared to present adequate
records if they are needed next year or the year after.
One of the most important uses of Quicken is to keep track of your assets,
especially your cash. Money comes from several sources, not all of them
taxable, and gets spent on many things, not all of them deductible. An
accounting system that ignores non-tax-related transactions is not adequate
for managing a household, much less a business. While I might look for ways
to summarize some transactions where details are not important, I would
certainly try to establish a good opening balance for each bank account, and
then enter all additions and subtractions from that account to the present,
to provide a good foundation for future accounting. Since tax returns are
(almost always) based on the calendar year, you should try hard to create
adequate records for the whole year, even if downloads are not available for
the first half. Use paper records where downloads are not available; we all
always relied on paper records until recent years, and they still are often
more trusted than electronic reports.
> And how do I deal with the "beginning balance" that quicken assigned
> to these accounts based upon the downloaded information.
Quicken knows only what you've told it, in one way or another. It is YOUR
responsibility to provide the dependable beginning balances. If Quicken got
it wrong, then YOU must correct it, using information from paper statements
or any other sources that you have.
Back to the main point: Keep your records to meet your needs: To manage
your business; to satisfy the IRS; and for whatever other purpose you might
have.
RC
--
R. C. White, CPA
San Marcos, TX
(Retired. No longer licensed to practice public accounting.)
rc@grandecom.net
Microsoft Windows MVP
(Currently running Quicken 2008 Deluxe in Vista Ultimate x64 SP1)
> I have recently started using Quicken H&B and was able to download
> transactions back to the beginning of the year with the exception of
> bank accounts which are only available from June 1 to present.
>
> With a startup, we have some checks that were written that I need to
> record, however, do I really need to manually enter all the
> information from the bank statements or only the tax related items.
> And how do I deal with the "beginning balance" that quicken assigned
> to these accounts based upon the downloaded information.
>
> I assume that I need to put any tax related information into this file
> so that when I transfer it to turbotax to do my taxes next year, I
> have all info in one place.. I assume that TTax gives me an oportunity
> to add additional expenses to my C form..yes it is my first time to
> fill one out so I new to the business software side of TTax.
>
> thanks for any advice.
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Posted by John Pollard on September 4, 2008, 9:22 am
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Jo wrote:
> And how do I deal with the "beginning balance" that quicken
> assigned
> to these accounts based upon the downloaded information.
There's nothing magical about the "beginning balance" (or
"Opening Balance") assigned by Quicken, you can modify that
transaction to suit your needs.
Assuming Quicken correctly computes the first opening balance
based on the first download of transactions for the account: if
you then manually add transactions that occurred prior to the
date of the initial Opening Balance, you just modify that
Opening Balance accordingly. You change its amount so that the
Ending Balance remains correct, and you change its date so the
account balance just before the first (oldest) transaction in
the account, is correct (ideally, the Opening Balance of the
account would be the Opening Balance of the first statement for
the account).
Basically, as you manually add transactions older than the first
downloaded transactions, you will modify the opening balance
transaction amount by the net amount of those manually added
transactions, and you will modify the opening balance
transaction date to make it earlier than the transaction date of
oldest manually added transaction.
--
John Pollard
First initial underscore Last name at mchsi dot com
Please reply to newsgroup
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Posted by Jo on September 5, 2008, 1:00 pm
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Thank you both for your responses. As the accountant in me (formerly
trained..just out of circulation for some time) is already twitching
due to the missing info in my reports..I will begin to manually enter
the previous statements. I agree, the reports are just for me, but
with a hopefully expanding business, I like to have all my docs in
place for the future.
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Posted by R. C. White on September 5, 2008, 1:13 pm
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Hi, Jo.
Yeah, I've been retired for a long time, too. ;^} But old habits just keep
reasserting themselves. As John suggested, there's nothing wrong with
temporary fixes, so long as we recognize their temporary nature and remember
to correct them when real data becomes available. We accountants just can't
relax until the fixes are fixed, can we?
My post was obviously overkill for you, Jo, but maybe it will be food for
thought for other readers. We never know in a newsgroup who might be
"reading over our shoulders".
Good luck with your new business.
RC
--
R. C. White, CPA
San Marcos, TX
(Retired. No longer licensed to practice public accounting.)
rc@grandecom.net
Microsoft Windows MVP
(Currently running Quicken 2008 Deluxe in Vista Ultimate x64 SP1)
>
>
> Thank you both for your responses. As the accountant in me (formerly
> trained..just out of circulation for some time) is already twitching
> due to the missing info in my reports..I will begin to manually enter
> the previous statements. I agree, the reports are just for me, but
> with a hopefully expanding business, I like to have all my docs in
> place for the future.
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