Quicken vs QuickBooks for Farm Financial Records. Computer use for business purposes by region

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1 Quicken vs for Farm Financial Records Damona Doye Extension Economist and Regents Professor OSU Agricultural Economics Department Lori Shipman Extension Assistant Computer use for business purposes by region Northeast North Central South West US Source: USDA/NASS, Farm Computer Usage and Ownership, August

2 Computer use for business purposes by farm sales class Source: USDA/NASS, Farm Computer Usage and Ownership, August 2009 Off-farm work by principal operator Under to to to to Principal occupation is farming Principal occupation other than farming 1_US/index.asp 2

3 Farm organization Family or individual Partnership Family held corporation 86.5 Corporation, other than family held Other: co-op, estate t or trust, institutional, etc. Source: Chapter_1_US/index.asp Recordkeeping suggestions Start simple Be consistent Be disciplined Get assistance Be enthused! 3

4 Everyone should use Quicken.* Some should also use *. * Or a similar product. No endorsement of a specific commercial product is intended or implied. Quicken features and? Inexpensive Flexible Easy to use Able to grow with the business Allows for both farm and family records Cash accounting Not expensive Less forgiving and less easy to use Able to grow with the business Allows for more sophisticated t business use Double-entry 4

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6 Quicken Cash accounting Personal finance Family living expenses Off-farm income Investment income and expenses Accrual accounting Small business finance Invoicing Accounts payable/receivable Payroll Use Quicken File Accounts Categories Tags Payee Paid by Company Chart of accounts: asset, liability, equity Chart of accounts: income/expense Classes Vendor Customer Terminology 6

7 Account name Accum. depr. Capital stock Payroll Iiabilities Dividends paid Organization Choice (examples of impact on accounts/tax line) Multi-member LLC, Partnership or LLP B/S-Assets: buildings/other Regular or C Corp, S Corp B/S-Assets: buildings/other n/a Unassigned n/a B/S-Liabs/Equity: other current liab. B/S-Liabs/Equity: other current liab. Unassigned Unassigned n/a Draws Member/partner n/a Sole Proprietor, Single Member LLC Unassigned Unassigned Crop sales Income: Gross receipts Income: Gross receipts Sched. F: Sales of livestock/products raised Quicken Enter transactions in register Write checks: personal Enter payment Enter deposit Passwords: file, transactions Data Entry Enter transactions in forms (e.g. invoice) Write checks: business with voucher Enter bill, pay bill, assign check # Estimates, invoices, & payments or receipts Multi-level passwords 7

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10 Quicken All manual Create categories, accounts Calculate Payroll subscription service Employee records Manual can be enabled Payroll 10

11 Payroll Products Online Payroll Software Basic: $25 per month+ (no state tax forms) Plus: $39 per month+ Payroll Software Up to 3 employees, $129 billed annually Unlimited employees, $229 billed annually Intuit Enhanced Payroll Up to 3 employees, $ billed annually Unlimited employees, $ billed annually Assisted Payroll Service $60/month+ 11

12 Quicken Memorized transactions Financial calculators Lists Items Vendors Customers Employees Other 12

13 Quicken Banking Comparison Spending Tax Easy Answers Graphs Also, customized folders for reports Company & Financial Customers & Receivables Sales Jobs, Time & Mileage Vendors & Payables Employees & Payroll Banking Accountant & Taxes Budgets Reports 13

14 Quicken Videos Forums, blogs Quicken Inner Circle Online assistance k coach Videos Live Community Facebook Twitter Youtube Linked in Assistance Cool things in both Quicken and Date: Y, R, M, H, T Find/replace Attach Download transactions Import/export Graphs Backup 14

15 Possible motivations for keeping farm records Keep what is needed for tax purposes Be prepared for the unexpected Planning ahead Communications Employee management Business analysis Be able to accurately identify shares of income and expenses Determine cost of production per unit Know where profit (and/or loss) centers are in the operation Records for farm tax purposes Quicken Farm income and expenses 1099 Employee payroll Asset sales and purchases?? It is easier to do a job right than to explain why you didn t. Martin van Buren 15

16 Records for being prepared Quicken Knowing cash reserves, cash flow, margins Employee records List of accounts, credit card numbers Assets and inventories = = = = Records for planning ahead Quicken Budget features Budget to actual comparisons Financial calculators Retirement planning Investment analysis = = Estate planning?? 16

17 Records for communications Quicken Business partners Family Lenders = = Landlords = = Heirs Records for employees Quicken Manual Payroll Payroll taxes Employee payroll 17

18 Records for business analysis Quicken Enterprise analysis Tracking costs, returns for multiple years Analysis by customer = = Analysis by item Financial statements Quicken workshops 3 hours Set t up file Add accounts Add/edit categories, import farm categories Create classes Enter transactions View sample reports, graphs Backup 18

19 workshops (expected) Day 1 Company setup Chart of Accounts Lists Vendors Customers Items Enabling classes Other bank accounts Paying bills Recording income Day 2 Liability accounts Asset accounts Reports Budget features Introduction to payroll 19

20 Our plans for 1 day in-service for Extension Educators, April 13 Basic instructions online in departmental publication database Pilot workshop(s) Workshops at national flower growers conference in Tulsa, November Resources for Ag Online Flagship Technologies hi / d t / 20

21 Everyone should use Quicken.* Some should also use *. * Or a similar product. No endorsement of a specific commercial product is intended or mplied. Questions? Damona Doye damona.doye@okstate.edu