Docstoc

tax quicken

Document Sample
tax quicken Powered By Docstoc
					                Farm Financial Record Keeping Through Quicken
         (Quicken 2002 Deluxe Version 9.0 for Windows 95/98/2000/Me/XP)1

        This workshop is designed to introduce basic concepts that will help you in
adapting Quicken2 in the organization of your financial records for your farm business.
A hypothetical case farm with a cow/calf herd and wheat for grain and pasture is used in
this manual. The mechanics of record keeping outlined here, however, could always
serve as a good reference when working with other types of farm enterprises and when
working on computerized personal records at home.

        This basic course is divided into six (6) major sections:

    A. INTRODUCTION:
          o Quick Keys
          o File Set-up
          o Preliminary Account Categories

    B. SETTING UP ACCOUNTS
          o Asset Accounts
          o Liability Accounts

    C. CATEGORIES AND CLASSES
         o Expanding categories
         o Adding and Deleting
         o Subcategories
         o Setting up classes

    D. ENTERING TRANSACTIONS
         o Recording
         o Splitting

    E. REPORTS AND GRAPHS

    F. BACK-UP FILES

    These topics will be discussed in detail in the sections that follow. Throughout this
    manual, specific instructions written in bold fonts will require you to either choose a
    button (or menu item) or provide a response.




1
  This manual is based on Dr. Damona Doye’s “ Using Quicken for Farm Financial Records” published by
Oklahoma State University.
2
  Quicken is a registered trademark and will be referred to simply as “Quicken” or “Quicken 2002”
elsewhere in this manual.


                                                                                                   1
                                 A. INTRODUCTION

1. Quick Keys, Keyboard Shortcuts and Desktop Set-up

      Quick Keys and Shortcuts

      The 2002 version of Quicken allows you to choose an item from the Quicken
      menus in three different ways:
      o Through the <Alt> and the letter key underlined in the menu line (this letter
         will also be underlined in this manual)
      o Mouse clicking on specialized “buttons”
      o Moving cursor using the mouse to appropriate line in the drop-down menu
         and clicking using the left button.

      Within Quicken, after you have responded to a particular data request or selected
      a menu item, you may use the following optional keyboard shortcuts:
      o Press <Tab> to move forward to the next field;
      o Press <Shift><Tab> to move back one field;
      o Press <Esc> if you want to cancel a particular action

      Other Keyboard shortcuts you may want consider are:

                   To                         Press
      Decrease date or check number        - (Minus key)
      Increase date or check number        + (Plus key)
      Go to register                       Ctrl R
      Go to Write Checks                   Ctrl W
      Go to Financial Calculator           Ctrl K
      Go to View Loans                     Ctrl H
      Go to Currency List                  Ctrl Q (only if multi-currency support is enabled)
      Quick Zoom a report amount           Ctrl Z
      Get Help on the current window       F1

                  Dates                      Press
              To switch to
      Today                                t
      First day of this month              m
      Last day of this month               h
      First day of this year               y
      Last day of this year                r
      Go to date                           Ctrl G




                                                                                                2
      Desktop Set-up

      The desktop set-up in the 2002 version is slightly different from those of the
      earlier versions. The corresponding number labels in the captured screen image
      indicate the locations of the following available desktop navigation options:

      1) Using the mouse, move the cursor to the appropriate item in the menu line and
         click using the left button.
      2) Buttons provide quick access to options such as returning to the previous
         screen (back), accessing the internet (online), a calculator, and the print
         feature. An action button with a drop-down list of actions can be added by
         choosing:
                     Edit
                        Options
                             Quicken Program

                      General Options
                      √ Show Action Buttons
                            √ OK

      3) The “My Finances” view displays as Quicken account summary in one easy-
         to-read place. You can customize what appears on the My Finances Center by
         deleting, rearranging, or adding new components up to a total of 34 different
         snapshots. You can also create up to 11 different views of the My Finances
         Center. When an option such as “Banking” is opened, the banking center will
         occupy the desktop.
      4) Quicken does not have an activity bar or icon. Every major area of personal
         finance has its own Quick Tab. When you open a new feature, Quicken
         places a feature tab under the appropriate area, giving you one-click access to
         the features you use most.

              When you become familiar with Quicken 2000, you may want to try using
              these quicker features, but for now we will use the drop-down menu bar
              for navigation.



2. File Set-Up

   Let’s start from scratch and set up a file for your farm enterprise. To do this, click on:
      File
          New
   And the following screen appears:




                                                                                           3
Indicate that you intend to “Create a New Quicken File” and then click on √ OK (or
press <Enter>).




Provide a name for your Quicken file by typing the name on the space for “File
name:” For this session, we will simply call our sample farm “Georgia Ag
Enterprises” owned and managed by a certain couple Ron and Lily Turner. Then click
OK and a series of set-up windows will open one after the other. Click Next in each
window after you have provided the information being requested.




                                                                                     4
   Your answers to the above questions will determine the standard Quicken categories
   that will initially be made available to you as you work on your farm account. Details
   of these category lists are provided at the end of this manual for your reference.
   When setting up your personal file, you may choose none, one or more of these lists.

   These lists are only built-in or preliminary categories that may or may not apply to
   your situation. A later section will illustrate how these built-in categories could be
   expanded with suggested new entries designed for a specific farming enterprise. The
   important point to remember is that category lists can always be modified anytime by
   either deleting or adding categories.




Click Done.




                                                                                        5
                               B. SETTING UP ACCOUNTS

1. Asset Accounts

    At this point, we are now ready to set up accounts. To be able to do this you must be
at the My Finances section (available as an option under the Finance pull-down menu).
The My Finances section has two windows: Setup and Main View windows.
        i)      The Setup window (actually a more user-friendly new feature in Quicken
            2002) conveniently allows you to set up accounts, bills, scheduled transactions
            and the owners’ paycheck easily.
        ii)     The Main View window presents a summary of your account balances, a
            one-step (software) update summary, a stock watch list, alerts and reminders
            for bills and scheduled transactions, an overview (numerical and graphical) of
            your financial position (assets, liabilities and net worth) and a help section.

    We need to be at the Setup window of the My Finances section to be able to set up
our first accounts.




   The first account we would like to set up is the checking account since it will be
useful for illustrating several applications on entering transactions (such as recording
cash payments and deposits). Click on the box Create New Account.




                                                                                           6
Select Checking and then click on ► Next.

         The next window requests for information on the names of the account and the
financial institution where the checking account is maintained. There is a drop down
menu of financial institutions that are in the current Quicken database. You might opt
later to set up an on-line connection with the financial institution you have selected to
facilitate easy, automatic reconciliation of your accounts and other convenient online
transactions such as paying bills, checking account balances, etc. You may also want to
provide some description for the account that might help you in remembering certain
details important to the account. Click on ► Next once you’re done.




        The next window then requests for starting point information for the account such
as the ending date and balance indicated in the last bank statement (if available)




                                                                                            7
Click Done.

    Aside from the account setup options in the My Finances (setup) window, there is an
alternative way of setting up accounts. Let us use this procedure to set up the savings
account. Click on

       Finance
          Account List
             New (This is located in the “My Finances: Account List” menu).

These commands will bring you to this window. At this point, we are going to set up the
Savings account so click on the “Savings” option under Banking and Cash.




Click on ► Next. As in the checking account, use the drop-down menu to choose the
financial institution with whom you are maintaining your savings account.




                                                                                      8
Click on ► Next. Then enter the required information.




Click on Done. This will lead you to the savings account summary screen. Actually
each account that you set up will have an account summary window. The white arrow
pointing downward beside Savings on the upper left hand corner of your screen leads you
to a drop down menu listing all the accounts that you have set up. Clicking on an account
name in this list will lead you to that account’s summary screen.

       You can also access the account summary screen through:
             Finance
                 Account List




                                                                                       9
You can then select the account name from that list.

        The Account Summary screen actually has two windows (found at the upper right
corner of your screen): Register and Overview. You will be frequently using the
Register window when recording transactions. This window also enables you to set up
online connections with the financial institution servicing your account. The Overview
window provides a summary of your account status.




IMPORTANT: To close this window and all other similar windows without intending
to close the entire Quicken program, DO NOT click on the topmost X at the upper right



                                                                                    10
hand corner of your screen. Instead click on the second X below (right next to How do I
in this case).

       Now try to set up a cash account, given the following information, using either of
the two procedures:

       Account Name: Cash Account
       Balance: 200.00 as of 01/17/02.

After you have done this, the “My Finances” section of your screen should already
contain all three accounts.


2. Liability Accounts

       We will now look at how liability accounts are set up. In this section, we will
   consider two types of liability accounts: a one-time payment (un-amortized) loan and
   an amortized loan.
       The Georgia Ag Enterprises business of the Turners has two outstanding loans on
   January 1, 2002:
                  1) An automobile (pick-up) loan of $1,455 that has to be fully repaid
                      during the current year (so does not need to be amortized); and
                  2) A land note for $94,936 at origination date (August 15, 1995) that
                      has to be repaid over 15 years (i.e. with a remaining term of about
                      8.5 years at the start of 2001) at 10.5% interest.


   a. A One-Time Payment (Un-amortized) Loan

       Let us first set-up the pick-up liability since it is a simpler (non-amortized)
   transaction. Let’s use the easier method available in the My Finances-Setup
   window. Go down to the section on Setup Property and Loan Accounts and click
   on Create New Account. Then provide the following information when requested in
   the succeeding windows:

               Account Type: Liability
               Account Name: Pick-up Note
               Description: Bank of Clinton – pick-up note (there could be a limit on the
                                                              number of characters you could
                                                              use so try to provide very brief
                                                              descriptions.)
               Balance: 1455          as of: 01/17/02.




                                                                                                 11
Then press Done (or press <Enter>). At this point, this window shows up:




                                                                           12
Since we will not amortize this loan (to be fully paid this year), we will choose No.

b. An Amortized Loan

   To set up the Land Note, we will go through the same initial process used in the
previous section but this time use the other setup procedure under Finance-Account
List menu:
   New
       • Liability
                  ► Next

Then choose provide the following information in the appropriate line in the next two
windows in the same way the former (pick-up note) account was setup.

           Account Name: Land Note
           Description: FLB – Hall Place
           Balance: 73126.01 as of: 01/01/01.

Then press Done (or press <Enter>). When asked,

   Would you like to set up an amortized loan to be associated with this account?

    Click on Yes. This will lead you to the loan setup window where two optional
procedures are made available to you: Easy Step and Summary. The Easy Step
option runs you through each aspect of the set-up procedure one at a time while the
Summary option lets you fill in all required information in less number of
screens/windows. Let us choose the Summary option




   and enter the information shown in the next three screens:




                                                                                        13
Click on ► Next.




Click on ► Next.




                   14
       Click on Done. You will then be asked the following question:




        Click on OK and you are brought back to the previous screen that now includes a
calculated amortization amount to be paid at a specified date.

       Note: When Quicken is asked to automatically calculate for you the amortization
       amount for principal and interest tied up with a particular liability account,
       Quicken calculates the amount based on the remaining term, the outstanding
       principal balance and the given interest rate. Quicken assumes that the given
       interest rate is fixed until maturity and calculates an equal annual amortization
       amount (principal and interest) that is not necessarily equal to the original (equal)
       annual amortization value calculated at loan origination. In case a loan follows a
       predetermined loan amortization schedule that has a stipulated annual
       amortization payment, you should input this amount in blank provided for
       “Payment Amount (P+I) instead of electing the “Calculate” option.




       Click on Done. After you’ve done this, the following Set Up Loan Payment
       screen appears to prompt you to specify details of the payment. Enter the
       additional information, including the name of the payee and making sure that the
       proper category for interest expense is selected.
               For now, this category for interest payments is limited to the available
       default category provided by Quicken. But in the later section, we will be
       expanding the category list with some customized categories and subcategories
       (for example, you may decide that a more appropriate label should be more


                                                                                         15
specific, i.e. containing a sub-category that labels interest expenses attributed to
farm mortgages alone, such as the suggested “MortInt:FarmMInt” included in the
category list to be imported in the next section). It is important that the category
of your choice has been properly established at the outset since this attribute of
the account could hardly be modified later.




Click on OK.




Click on No.

        The loan is now a memorized transaction. This means that the
information for the check register and loan register can be recalled whenever the
payment comes due. The loan payment requires a split transaction (to be
discussed in a later section): the principal paid is applied to the loan balance in
the appropriate loan liability account while interest paid is appropriately recorded
as an interest or mortgage interest expense.

        We are finally finished with the basic procedures for setting up accounts.
In the future, you will need only to select the account for which transactions are to
be recorded. We will do this is a later section when we learn how to record
transactions such as entering payments and deposits in the checking account.




                                                                                  16
                            C. CATEGORIES AND CLASSES

    It is important to understand the concepts of category and class when using the
Quicken register. In recording each transaction, you may want to provide as much detail
as you want to later help you sort information for reports. Categories and classes may
capture these details.

    A category is a type of income or expense designed to be useful for both tax purposes
and financial analysis. A subcategory is one level beyond the main category that enables
the user to note more detail while keeping the information grouped. For example, you
may want to track fuel costs separately from vehicle repairs instead of just lumping all
these expenses under the auto category so you end up with Auto: fuel (for gas and diesel
costs) and Auto: repairs (for cost of repairs such as tires, starter, fuel pump or v-belt).

    A class is used to identify a transaction independent of the income or expense label.
The class specified the where, what or to whom the transaction applies. In farm financial
record keeping, the class feature of Quicken may be attributed to the type of farm
enterprise the activities belong to (such as cow/calf, wheat or corn operations.) This will
enable you to generate separate financial reports for each enterprise (class) instead of just
one whole farm financial report.

1. CATEGORIES

   a. Importing a farm income and expense category list

               Up until this point, all we have are the default Quicken category lists we
       selected at the time we set up this account. Details of these lists (standard
       categories for married people, with and without children, for homeowners and for
       small businesses) are included in these handouts (at the end of this manual).

                Within a file, these default categories selected can be merged into a
       common list. In this list, income categories are listed first in alphabetical order,
       followed by the expense categories also in the same order. In addition, we could
       introduce a set of new categories that facilitate farm financial record keeping and
       develop the framework for Schedule F tax reports. This list can be imported into
       Quicken files from a file named FARMCAT on the diskette you received with
       this notebook. By importing this file, the resulting category list will be a merger
       of the farm income and expense categories and the Quicken default category
       list(s) selected.

              To import these farm income and expense categories to our current file, be
       sure the disk with the FARMCAT file is in drive A. From the main menu,
       choose:
              File
                 Import ►
                     QIF File



                                                                                           17
       Then complete the QIF Import screen. Make sure that drive A is specified. If
   the FARMCAT file is not yet specified, click on Browse and choose the
   appropriate file (Farmcat.qif) among the files in drive A.

       Important: Be sure to remove the check marks on Transactions and Special
   handling for transfers by clicking on the check mark. Category list should be
   the only item selected.




          Click on √ OK.

          Then wait while categories are imported.

      Afterwards, a message appears informing you that items have already been
   successfully imported.

      Click on √ OK.

         To verify your category list, click on Finance, then Category and Transfer
   List to reveal your new set of categories that should now include such items as
   CCCPay, CCCRec and other farm categories in addition to the original default
   list.

      Close the category list by clicking on the X in the upper right corner of the
   Category and Transfer List window.


b. Adding New and Deleting Unnecessary Categories

            The farm income and expense category list provided to you contain
   merely suggested categories that may provide the basis for your own personalized
   list of categories applicable to your farm business situation. In other words, you
   are always free to modify the list by adding new ones that you feel must be
   included in the list or deleting those that do not apply to your business.


                                                                                   18
       Let’s assume for instance that you want to add a category that is
associated with subscribing to a computerized data network (let’s call this
category CDN). To do this, access the category list by choosing:

               Finance
                  Category & Transfer List
                     New (from the top left portion of the Category & Transfer
                                  List window)

       Then enter the following information:




    Place a check in the box for Tax related by hitting the space bar or clicking
on the box.

    Then select the appropriate tax form by choosing Schedule F: Other farm
expenses. You can do this by clicking on the ▼ at the right and scroll down
through the list until you find this item. Or, type S for schedule, then F which
takes you to Forms and the bottom of the Schedule F list, then scroll up to the
appropriate Schedule F line.

   Click on √ OK.

    The new category has now been added to your list. You can verify this by
scrolling down in the Category & Transfer List on your screen to find this item.

   Do not worry about making mistakes in setting up categories. You can
always change information in the categories any time and all transactions will be
immediately updated. If you need to make any corrections, highlight the category
name and click on Edit.



                                                                                    19
       You can easily remove unused categories. For example, let us delete Bonus
   (Bonus income) category. Move the cursor to this item in your list. You can
   delete this category in one of two ways:

          1. Press Ctrl D and <Enter> or
          2. Click on Delete at the top left section of the window.




          Select ● Delete Category. Then click on √ OK.


c. Subcategories

           The procedure involved in setting up sub-categories is the same as the one
   we used for categories. Let us say that we would like to another layer of detail to
   our fertilizer purchase records so that, for instance, we would be able to track
   nitrogen, phosphorous, potash and boron separately rather than lumping all these
   details under the fertilizer/lime category. To do this, click New assuming that you
   are now in the Category & Transfer List window.




          Quicken automatically fills in the tax information since FertLime is
   already set up in the data files. However, one must be careful to note that
   sometimes changes need to be made when the subcategory has a different tax


                                                                                   20
     attribute than the parent category. An example is when the parent category is
     mortgage interest and the subcategory is farm mortgages and personal
     mortgages.

             Then click on √ OK.

           Now repeat the same process for setting up the subcategories for
     Phosphorous, Potash and Boron.

            Once you’re done, close the Category & Transfer List window by
     clicking on the X in the upper right corner of the window.



2. CLASSES

      A class adds another dimension to reports. As explained earlier, we may use
  classes to sort income and expenses by enterprise. This means that by recording the
  class along with the category for each transaction, you will be able to generate reports
  that would summarize income and expenses associated with a specific component of
  the farm operations. As you may recall, we earlier imported a set of custom-made
  categories that apply to a sample farm with a cow-calf herd and produces wheat for
  grain and pasture. Along with those financial categories were several classes that
  were set up for you to account for such enterprises as CowCalf, Oats and Wheat.
          Let us learn how to set up a class by adding an Alfalfa class to our set-up. To
      do this, choose:

             Finance
                Class List
                    New




            “Copy Number” is used only if you are filing multiple copies of a tax
         form.
            Then click on √ OK.




                                                                                       21
                        D. ENTERING TRANSACTIONS

    Now that we have already set up the accounts, categories and classes, we are
ready to start recording transactions. The following points are important to consider
in recording transactions:

       1) Specifying Categories and Classes

           The general format for labeling a transaction is

                  “Category:Subcategory/Class:Subclass.”

                   Notice that a slash “/” separates categories from classes while a
           colon “:” indicates a second (and subsequent) dimension(s) to either a
           class or category.
                   Thus, for example, at the Category prompt for a transaction
           involving the purchase of nitrogen for the alfalfa enterprise, the proper
           entry should be “Fertlime:Nitrogen/Alfalfa” where Fertlime is the
           category, Nitrogen is the subcategory and Alfalfa is the class name.
                   Let us now record a particular transaction involving a payment for
           repairs to Yukon John Deere for a winch on a pick-up used for the cow-
           calf operations.
                   Make sure you are in the Checking Account by choosing Finance,
           Account List and Checking. Then enter details of the transaction that
           should include date, check number, payee, amount of payment, category
           and, if you wish, a short memo. Remember that you may use the <Tab>
           key to move from one field to another.




                  Once you’re finished typing the information, click the Enter
           button or press Ctrl Enter.




                                                                                    22
2) Split Transactions

          At times you could come across a transaction with a particular
   company or payee that includes items that should be allocated to different
   categories and classes. This requires you to split the transaction as
   needed.

           Let us consider, for instance, a Co-op bill that might include both
   fuel used in wheat production and feed used in the cow-calf enterprise.
   The first step is to enter the total amount of the check:




   Now click on Split and type in these responses.




           Click on √ OK when you’re finished entering the information (and
   the Split window is closed) and then click on Enter to record the
   transaction.


                                                                             23
   Important Notes:

         a. Turning Off Split Function for Specific Transactions
               Be careful in dealing with repeat transactions that are based on
            a split transaction. Watch out for specific instances when you
            need a split transaction as well as when you don’t. Remember
            that when you write another check to a business or individual for
            whom you previously issued an earlier check that was split,
            Quicken assumes that you want to use the same “split” format as
            before. In case you don’t need to split a current transaction
            compared to before, you can turn off the split function by doing
            either of the following:
               • Clicking on X to the right of “Split” in the category line
                   and then clicking on Yes; or
               • Clicking on Split, Edit, Clear All, Yes, √ OK.

         b. Memorized Transactions for Generally “No-Split” Accounts
             When you undo the split function for an account for which you
           generally prefer not to have a split, you may want to memorize the
           transaction by:
                • Highlighting the transaction with a single category/class,
                    and press Ctrl M, then OK; or
                • Choosing Edit, Transaction, Memorize, √ OK, Replace
                    (if the transaction you select to memorize was not the first
                    one entered for the payee).

         c. Accounts/Payees with Changing Categories and Classes
                If the categories and classes used with a payee change
           constantly, you may prefer to create a blank transaction with only
           the payee name and memorize it. This will help prevent
           misallocations and even negative amounts in split transactions.
           Periodically review your split transactions, particularly those
           where the amount allocated to different categories varies each
           time. Deposits as well as checks written to places like Walmart or
           the co-op are good candidates for potential mistakes. If you don’t
           clear all previous splits when you enter a new transaction, you can
           end up with negative amounts in categories that were not intended
           to be used.

   Now let’s practice doing this by going back to the Klondike Co-op
account, this time to enter a check for $355 as payment for fertilizer only.




                                                                               24
Now click on the red X near the middle of the screen.




Click on √ Yes and this brings you back to the Banking: Checking window
where you have to enter “FertLime/Wheat” at the category prompt. Then
click on Enter.

Let us try recording a deposit. Let’s say that the Turners had some hay in
storage and recently sold some to a neighbor, Paul Bunyan. Go to the next
blank line and enter the following information:

   Date:          1/11/02
   Num:           DEP (This will ensure that the amount to be entered later
                          will fall under the deposit column when the <Tab> key is
                          pressed after you have entered the payee’s name)
   Payee:         Paul Bunyan
   Deposit:       800 (If you forgot to enter DEP in the Num column, make
                          sure to <Tab> over twice so that the cursor is in the Deposit
                          column)
   Category:      RaisedSale:OtherProd
   Memo:          8 tons of alfalfa hay

   Enter.




                                                                                      25
3) Recording Loan Payments

   Suppose its is now August 2002 and the amortization payment on the land
   note is already due. To make and record this payment, enter the date and
   check number in a blank transaction line. Then choose

          Banking
            Memorized Transaction List (which provides you the list of
                              all payees for which transactions have been
                              entered thus far)
                Double click on the Federal Land Bank line

   This will bring you to the following window that asks you to confirm the
   pre-calculated principal and interest amounts done for you by Quicken:




   Click on √ OK and then Enter in the check register.

   You can view the amounts applied to principal and interest by returning to
   the land note payment line in the register and open the splits by:

          Highlighting the Federal Land Bank transaction
          Click on Split.




                                                                           26
           Click on √ OK when you want to leave the split.

           Now switch from the checking account to the LandNote account to verify
           if the principal payment has been applied to the outstanding balance of the
           loan. You will notice that a Balance Adjustment entry has been made for
           earlier principal payments and that the principal portion of the payment
           from the checking account has already been applied to the loan balance. If
           you get a message that the transaction is not a transfer, you didn’t
           record your payment earlier!

           Then right-click and choose Go to Transfer to return to the Checking
           Account. Close the Split Transaction window is it appears on your screen.


                           E. REPORTS AND GRAPHS

    Quicken can generate important reports that you might need to monitor the
financial performance of your business. Among these are statements of the farm’s
cash flows, profit and loss, payments made to individual payees, tax schedule and
transactions. Some of these reports could be sorted according to classes or enterprises
to give you an idea of how certain aspects of the farm business are separately
performing.

   In addition to plain reports, Quicken can also provide graphical representations or
summaries of your farm’s financial transactions that could provide an additional
dimension to your analysis and understanding of the trends in your farm’s financial
operations.

     To illustrate these features, we are going to use a previously developed sample
file called “GAFarm” in your diskette since the files that you are currently developing
may not yet have an adequate number of transactions for purpose of generating and
analyzing reports.

   1. REPORTS

       Let’s say we want to generate cash flow reports. Click on

           Reports
             Business
                 Cash Flow Report

       You may want to adjust the report date either by changing the starting and
       ending dates for your reports or by using one of the options provided for you
       in the leftmost box of the window (options include current



                                                                                     27
month/quarter/year, month/quarter/year to date, last month/quarter/year,
among others). After you’ve changed the dates, click on Update. The
resulting report is a general cash flow report for your whole farm business for
the single period you have specified. An example of a year-to-date (until last
transaction date) cash flow report is attached at the end of this manual.

Suppose you need to look at more details in your cash flow that will be useful
in your analysis of your farm business performance. The usual two important
levels of disaggregation that you may want to consider are: monthly and
enterprise reports.

To generate these reports, choose

   Customize
     Display




Modify the title of the report, confirm the correct report dates and select the
proper column (Month for monthly reports, Class for enterprise reports).
Then click √ Create.

You may want to memorize these reports if you think you might have to use
them again in the future. Click on Memorize then √ OK. You may be
prompted to select a report date. In this case, choose • Named Range (…)

Sample monthly and enterprise cash flow reports are provided at the end of
this manual.

Another type of report you may want to generate is a summary of payments
made to a particular supplier. Let us generate this report for payments made
to Klondike Co-op. To do this:

   o Click on the Customize button
   o Edit the title as “Klondike Co-op Transactions Summary”


                                                                                  28
       o   Click on Include
       o   Then at the Matching column at the right make sure that select
           Klondike Co-op as entry for Payee contains.
       o   √ Create.

   If the last report you generated before doing this was the enterprise cash flow
   report, this transaction summary will be generated for each category and
   enterprise unless you change the report lay-out for other report formats that
   you may require.

   Tax Reports are also another set of important reports that you may want to
   generate. To generate the standard report, click on

       Reports
           Taxes
               Tax Schedule Report
   The resulting summary lists by category every transaction involved in a tax-
   related item grouped by the tax schedule form specified for each category
   (starting with Schedule A, including charitable contributions, and continues to
   Schedule F for farm income and expense items and ending with a W-2
   summary).

   You may prepare a customized report that shows totals only (not individual
   transactions) by choosing

       Customize
         Under Show check on Totals Only
             √ Create.


2. GRAPHS

Quicken makes it easier for you to obtain a quick picture of your income relative
to expenses as well as the income and expense composition of your finances. To
generate an income and expense graph, click on:

       Reports
         Spending
             Income and Expense Graph
                   Make sure that you specify the appropriate inclusive dates.
                         √ Update.




                                                                                29
           The above figure is then generated which shows monthly income and
   expenses as well as a pie chart showing net savings and expense composition.
   Note that the 10 categories contributing most to total expenses are charted while
   the rest of the categories are lumped into a category named “Other.”

         You may want to create a pie chart that shows expense composition only.
   You can customize the graph to include only the expense categories by clicking
   on:
         Customize
            Categories
                Then use the mouse of space bar to remove the √ from the income
                categories, leaving only the expense categories. To delete a series
                of items with the mouse, click on the first item, hold down and
                drag to the last item, and then release.
                        √ OK.



                           F. BACKING UP YOUR FILE

   Quicken actually automatically saves the data that you have entered in the file that
you have been working on every time you exit the program. When you re-open the
Quicken program, it usually recalls back the last file you have been working on
before you exited the program. In this case, if you have been working on a file that is
on your floppy diskette, make sure that the same floppy diskette is in Drive A before
you actually re-open the Quicken program.

   Even if Quicken automatically saves all work you have done on your account
before you exit the program, it is still advisable to save a back-up copy of your file in


                                                                                       30
another diskette or drive. Saving the same file on the same drive or diskette defeats
the purpose of backing up. Back-up files are necessary to prevent the complete loss
of data if something goes wrong with a drive (e.g. A or C) or your current diskette
that contains your file. Thus, the more logical thing to do is to create a back-up file in
a different drive or diskette.

    Since we have been working from the A drive, we will back-up our data on the C
drive. Make sure that your floppy disk is in Drive A and choose:

           File
              Back-up
                 A message appears with suggestions for backing up your data.
                 Click √ Yes
                        Select Back-up Drive
                           Backup Drive: C:
                           File to Backup
                                • Current File
                                √ OK
                                   Backup Directory
                                       Directory: C:
                                          √ OK
                 You should receive a message that the file has been backed up
                 successfully. Click on √ OK then select

                                   File
                                      Exit. (This leaves the program.)




                                                                                       31

				
DOCUMENT INFO
Shared By:
Stats:
views:115
posted:12/21/2008
language:English
pages:31