Quicken for Farm and Ranch Financial Records - Oklahoma State University (2023)

Released in March 2019|ID: CR-324

Von Damona Doye

Software developed specifically for agriculture is often expensive or cumbersome. Quicken® is a popular commercial recording package that:

• Very user friendly. Quicken® is easy to use for those unfamiliar with accounting terms, making it a good starting point for transitioning from a manual cash accounting system to computerized record keeping.
• Cheap and easily available.
• Flexible and enables record keeping for various agricultural and non-agricultural activities.
• Expanded. Users can chat with their neighbors about the app and usage.

Speed ​​up^®characteristics

The Quicken® user interface looks like a checkbook register and provides a familiar environment for computerized record keeping. Although Quicken® only includes household and general business income and expense categories, farm income and expense categories can easily be added. The import options allow you to add a list of farm categories created at Oklahoma State University that conforms to Appendix F, minimizing the effort involved in creating an initial chart of accounts.

The "Tag" feature in Quicken® can be used with categories to further identify and sort transactions to enable cash reporting by company, partnership interest or operation. QuickFill features recognize and complete repetitive transactions to reduce typing. Transaction splitting allows a given transaction to be split into up to 30 components with different categories and/or tag assignments. For example, a check to an agricultural store can be split into expenses for wheat fertilizer, pig feed, and livestock control fuel.

Reports - transactions, cash flow, balances, balance sheet, comparison, tax summary - can be easily generated, information filtered and layout changed. Although tax plans are not created, tax plan reports summarize recorded information related to a particular tax plan. Data can be exported to other software such as TurboTax®.

Built-in financial planning and tracking capabilities are also useful. Loans can be repaid while keeping the scheduled payments for future use. Entire operating budgets based on historical Quicken® data can be created quickly and easily, as well as budgets created from scratch. Comparative reports highlight budget and actual figures. Quicken® files can be easily imported into QuickBooks®, a popular accounting package for small businesses that need a more sophisticated financial record keeping system in the future.

Speed ​​up^®defects

For agricultural users, a major drawback of Quicken® is that physical data related to individual financial transactions cannot be easily aggregated, making it difficult to integrate production and financial records into reports and analyses. Physical quantity and unit price data can be stored in note lines and exported to spreadsheets for further summary and analysis. Likewise, it is difficult to adhere to a depreciation schedule for individual assets.

Speed ​​up^®Version

Several versions of Quicken® are available. Quicken® Deluxe has standard features for recording transactions, running reports, printing charts, and reconciling your checkbook. In addition, there are time-saving input features, account tracking notifications and online banking features. Payroll functions can be added if you have an online service and pay for a subscription to the tax spreadsheet. The Premier product includes Quicken® Deluxe features plus additional tools, information and advice for making investment decisions with its online features. This includes tax advice, warnings and a capital gains estimator to estimate tax liability when buying and selling shares. The Home and Business product offers small business features such as invoices, estimates, accounts payable and receivable tracking, and business reports. Internet access is an optional feature in all versions with the necessary computer hardware.

Speed ​​up^®ili Quickbooks^®

Deciding whether to use Quicken® or QuickBooks® depends on your accounting needs and skills. Some accountants suggest clients use QuickBooks®; However, not everyone is familiar with accounting terminology or procedures. The following sections highlight some of the differences between Quicken® Deluxe and QuickBooks® Pro (these versions offer the most features and flexibility).

First, think about your computer and accounting skills. If you can navigate basic computer programs, know what a file is, use a mouse, know that an X in the corner of a window closes it, and know how to write a check, then you can learn to use Quicken®. QuickBooks® is also easy to use once you understand the accounting terminology. With QuickBooks®, however, it's important to get it right the first time. Quicken® is a little more flexible and can grow as you learn to use it.

Consider your accounting needs. What do you expect from the program? When you need to keep track of simple cash-based income and expense records, Quicken is simpler to set up, easier to use, and less expensive. QuickBooks® can be used for basic cash accounting, but is intended to function as a double-entry bookkeeping system for businesses.

Some key Quicken features are not available in QuickBooks®:

1. The ability to record and track investments (including the ability to download investment information from the Internet). QuickBooks® does not allow recording investment documents.
2. Ability to easily create cash flow reports as well as budgets based on past transactions.

QuickBooks® has the following features that Quicken® does not:

1. Ability to create invoices and track received payments. (If you only need basic and rare billing options, check out Quicken® Home and Business.)
2. Ability to create accounts payable and track payments made. Payroll functionality is provided as a paid service and ranges from downloadable payroll updates to full payroll services. Other payroll features include the ability to track employee time and associate time spent with specific projects.
3. inventory functions. However, for most farmers and ranchers, this feature is of limited value because it is designed for retail. This can be useful, for example, to producers who sell certified seeds.
4. Ability to accept credit card payments (using QuickBooks® Account Manager).

Što Quicken® i QuickBooks® nude:

1. The programs are affordable. Quicken® Deluxe is subscription-based and costs $49.99 per year; QuickBooks® subscriptions can be purchased for $30 to $60 per month, depending on the features you need.
2. Both have features that allow you to track revenue and expense data by company for better financial analysis (Tag in Quicken®, Class in QuickBooks®).
3. Both include various reports to track income, expenses and tax data. However, QuickBooks® reports are more business-oriented and usually resemble standard accounting statements.

For a more detailed discussion, see AGEC-266 at Facts.okstate.edu. If you're still not sure which one is right for you, visit Quicken.com or QuickBooks.com. You can try a trial version of QuickBooks®.

work manual

Step-by-step instructions for adapting Quicken® for farm and ranch use are available for free download athttp://www.agecon.okstate.edu/quicken/or can be purchased for $25 from the OSU Agricultural Economics Department. Instructions include screenshots showing how to set up a file, open accounts, import a list of farm income and expense categories, change the category list, use category tags, enter transaction data, create reports and charts, showing how to use the budgeting and reconciliation functions. and data backup. A CD with sample files is included.

Abstract

Quicken® has dominated the personal finance software market for years. It has also proven to be a versatile tool for agricultural producers. Teaching materials are available for free online atwww.agecon.okstate.edu/quicken. You can also purchase them through your local Oklahoma Cooperative Extension Service office or from the OSU Agricultural Economics Department (529 Agriculture Hall, Stillwater, OK 74078).

1 The information provided here is for educational purposes only. Reference to any commercial product or trade name is made with the understanding that no discrimination is intended and no endorsement by the Cooperative Extension Service is implied.

Damona Doye
consulting economist