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Where do funds come from, and where do they go?

Karl
Karl Windows Beta Beta
I'm seeking a report that show how income and funds that I'm drawing from asset or liability accounts, is being spent, whether on expenses, paying down liabilities or increasing assets. Sort of a combined net worth and income statement.

Since money doesn't get created or destroyed but always comes from or goes to somewhere, the net of Inflows and Outflows in any given period should be zero. I'd've thought that's what a Cashflow report should do, but when I generate one, it always has a number on the bottom line! Where does that money come from!? Or, go to!?

Can anyone suggest how'd I do that report?

Best Answers

  • Karl
    Karl Windows Beta Beta
    Accepted Answer
    Jim, this is very close. But there is still a deficit or surplus number in the "Overall Total" bottom line. Where does THAT money come from if a deficit, or go to, if a surplus? Well, from bank & credit card "spending" accounts of course, but they don't show on the report because they're excluded by the Exclude Internal transfer option. Do I need to exclude/include the same or the opposite accounts in the Categories tab?

    It's the first time I've gotten an inkling to understanding the Transfers display options BTW, so thanks there too.
  • Karl
    Karl Windows Beta Beta
    Accepted Answer
    Yup, I see that as I play with it. By restricting the selections to accounts that don't hold large balances, I can get the net pretty close to zero, and just consider it "spending account fluctuations." Thank you so much for the help--I've been desultorily working on this report since I started using Quicken in 2000.

Answers

  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Look at a Cash Flow report.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Karl
    Karl Windows Beta Beta
    Cashflow report doesn't quite do it: it always shows a "balance." Where does that money come from/go to?
  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    It your assumption that everything should zero that is incorrect.  Money can come and go from "no where" or more precisely money can come or go from outside of your books/Quicken.

    You are expecting a double book system where if you add up all the books you will get zero.

    If you enter a deposit, where is the opposing transactions that will zero it?
    Unless you spend every cent of it will not come out to zero.
    Signature:
    (I'm always using the latest Quicken Windows Premier subscription version)
    This is my website: http://www.quicknperlwiz.com/
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Is your checkbook $0? (I hope not).  But that's what you're asking of Q, which uses a Checkbook metaphor.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Karl
    Karl Windows Beta Beta
    Appreciate the fast input. No, my bank account starts at (say) $1000, and when the balance goes to (say) $600, I want to see where that $400 went:

    SPENDS
    Buy MSFT, $100
    Beer, $100
    Mortgage P, $150
    Mortgage I, $50

    SOURCES
    Bank, $400

    NET, $0.

    Is that a "Changes report?"
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Looks to me like it went to buy MSFT, Beer and pay your 2 mortgages. 
    Why doesn't an Income & Expense report (customized to show the single month) not work for you?
    OR, are you expecting a Net Worth report and an Income/Expense report to be a single report?
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Karl
    Karl Windows Beta Beta
    Exactly--I want a combined "Where From/To" report. The income report doesn't do it alone because it doesn't show transfers to asset and liability accounts. I want a report that answers the question, "where does the money we make go?"
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    There is, in accounting, no such thing as this "combined report".
    Balance sheet items (Net worth) are balance sheet and Income/Expense are Income/Expense ... and never the twain shall meet.
    You'll just need to create both reports to see what you want.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Karl
    Karl Windows Beta Beta
    LOL. That's what I told my wife (who is the CPA, believe it or not). I can do it in Excel, but it takes an hour each time, too onerous for monthly reporting. It's not a GAAP-rules financial statement I want, it's a understand-my-finances report. I've been looking for 20 years, so will give it a rest for a while. Thanks for the interest and input.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    And, if you read my signature lines, I'm a retired "Certified Information Systems Auditor" and  Bank Audit VP.
    My usual comment is that the letters CPA and CPU are mutually exclusive.  If you have one, it's unlikely that you'll understand the other.
    In actuality, the primary difference is that a CPA needs to know nothing about computers (a CISA needs to know everything) and a CISA needs to know nothing about "Timing and Recognition of Income and Expenses" (a CPA needs to know everything).
    Also, the few people that I know who hold  both certifications will tell you that the CISA is every bit as difficult to achieve as the CPA (which includes both my brother and my late father)
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    Karl said:
    ...  The income report doesn't do it alone because it doesn't show transfers to asset and liability accounts. ...
    You can customize the Income/Expense by Category report to include all transfers (advanced tab).  That type of customization applies to many reports.  Why does that not accomplish what you are after?
  • Karl
    Karl Windows Beta Beta
    Doesn't do it, because each period shows either a surplus or a deficit. That's fine for an income statement, but in cash terms that money GOES to or COMES FROM some account, and I want to know which.
  • Karl
    Karl Windows Beta Beta
    Accepted Answer
    Jim, this is very close. But there is still a deficit or surplus number in the "Overall Total" bottom line. Where does THAT money come from if a deficit, or go to, if a surplus? Well, from bank & credit card "spending" accounts of course, but they don't show on the report because they're excluded by the Exclude Internal transfer option. Do I need to exclude/include the same or the opposite accounts in the Categories tab?

    It's the first time I've gotten an inkling to understanding the Transfers display options BTW, so thanks there too.
  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    I personally was going to suggest including the transfers, but never found a combination that did what you wanted.  Including selecting all the transfers on the Advanced tab.  But maybe Jim will find a better combination.  :smile:
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  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    For what is worth digging into it I find that adding in the transfers doesn't add anything to the picture.  What I'm seeing is that my transfers offset each other.

    And in fact that bring me back to my original comment.  In a pure dual book system you would have a book that offsets every transaction.  You don't have that in Quicken.

    There isn't a book for "Employer" for instance for where your paycheck comes from.
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    (I'm always using the latest Quicken Windows Premier subscription version)
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  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    Of course you could setup other such accounts and maybe get this to work that way.  But of course you will increase your workload as you have to change a lot of simple transactions into transfers to a manually entered account(s).
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  • Karl
    Karl Windows Beta Beta
    Accepted Answer
    Yup, I see that as I play with it. By restricting the selections to accounts that don't hold large balances, I can get the net pretty close to zero, and just consider it "spending account fluctuations." Thank you so much for the help--I've been desultorily working on this report since I started using Quicken in 2000.
  • Karl
    Karl Windows Beta Beta
    Actually Jim, one more thing. Can you suggest a way to show accounts with transfers both in and out, only once, on the side in which they're positive? For example, I draw 200 from Line of Credit and pay back 20, I would prefer to show just the net in the Inflows section as "FROM Line of Credit, 180".
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    NotACPA said:
    Balance sheet items (Net worth) are balance sheet and Income/Expense are Income/Expense ... and never the twain shall meet.
    You'll just need to create both reports to see what you want.
    No, they have to meet or you've got an unbalanced set of books.  This all plays out in the (unseen) Net Worth "account."  If you look at a public company's financial statements you'll see the meeting in a report usually titled "Statement of Shareholder's Equity" or something similar.  Quicken doesn't have the analog to that statement, you have to create it yourself to see if you've somehow screwed up.

  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    Karl said:
    Actually Jim, one more thing. Can you suggest a way to show accounts with transfers both in and out, only once, on the side in which they're positive? For example, I draw 200 from Line of Credit and pay back 20, I would prefer to show just the net in the Inflows section as "FROM Line of Credit, 180".

    The FROM and the TO are two sides of the same transfer and they are opposing Inflow/Outflow, you can't force them to be something they aren't by having them reported in what the wrong place.  BTW you can remove one or the other from the report by going into the categories and deselecting the one(s) you want [Account], but that isn't going to give you what you want.  It will give you an off balanced report.
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    (I'm always using the latest Quicken Windows Premier subscription version)
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  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    An Income & Expense report doesn't include your prior balance nor your ending balance.  Just the items for that particular time period.
    A Balance Sheet report (Net Worth) doesn't include what the particular changes are, nor doesn't show the transactions that created the changes in balances (i.e., the transactions).
    Thus, they only "meet" in the strictest of terms ... and nothing like the OP is requesting.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
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