Quicken Community is moving to Single Sign On! Starting 1/22/21, you'll sign in to the community with your Quicken ID. For more information: http://bit.ly/CommunitySSO

How to run Tax Planner without double counting business income

When I run the Tax Planner in Quicken Home, Business & Rental Property it records each income event twice, first when I invoice the amount, second when I receive the payment against that invoice.

Since an invoice is merely a statement, it seems to me that Q should only record the receipt of a payment. I spent a total of 6 hours yesterday with 2 Q utterly incompetent support people who knew no more than I about how to use the business features of Q.

 Instead of answering my request for how to properly configure and categorize business transactions, they spent most of their time doing inpertinent file integrity checks and virus scans, then hunted around the menus looking for (not knowing) something that might work.

 In the process they damaged my invoice records and and caused me to lose considerable income while I was not able to do my consulting work.

Best Answer

Answers

  • Howard Roark
    Howard Roark Member ✭✭✭✭
    "Tax Planner ... records each income event twice, first when I invoice the amount, second when I receive the payment against that invoice."

    I don't see that in Q2019 HB&RP R19.55. What release of Q2019 are you using?

    Quicken should definitely not record both the invoice and the payment of that invoice as income.

    "Since an invoice is merely a statement, it seems to me that Q should only record the receipt of a payment."

    That is true only if you use "cash-basis" reporting. For those who use "accrual-basis" reporting, income is recognized when an invoice is issued (and payments of those invoices are ignored).

    [See Edit > Preferences > Reports and Graphs > Cash-basis reporting if applicable.]

    There's not enough info in your problem description for me to offer anything further.

    How exactly are you determining that both the invoice and its payment are being treated as income by the Tax Planner?

  • Peter O'Neill
    Peter O'Neill Member ✭✭
    Here are my answers to your questions:

    Quicken version: Quicken 2019 R20.15 Build 27.1.20.15 Since they switched to an annual subscription with automatic updates it’s hard not to be running the latest version.

    Accounting basis: Cash

    How I know Tax Planner is double counting:
    Easy, Tax Planner lists all the transactions it totals for business income in a table at the bottom of the “Business Income or Loss – Schedule C” page. Each transaction appears first in black with the category “Accounts Receivable” and second in blue with the category “Consulting income”. The totals at the bottom of this table and at the top of the form indeed are double the true total of the income events.

    I suspect that I have not set up my business accounts properly, especially their tax categorization, but hunting through the menus, which are not very well designed for the business features, does not give me any better ideas. I issue invoices in accounts receivable and receive payment against those invoices. What other information can I provide you to arrive at a solutions?
This discussion has been closed.