Best practice for income and expenses categories

FiNaR
FiNaR Member ✭✭
Hello,

I started to use Reckon/Quicken in 2013, and since I have just randomly added expenses and income categories, to the point that now I almost have useless data when I run reports...

Is there a best practice (probably I should be an accountant :p) for having a good set of category, but not too many?

My use case is as follow:

- employee income
- living in rented apartment
- owning an investment property (with an active loan on it)
- running a small side business
- having a small broker account

System: Personal home and business

Questions:

1) can I create a brand new rationalized category set? (Any suggestion or reference link is much appreciated)

2) once I have a new set, how can I "change the past transactions"?

Thank you all

Answers

  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    Let me start this by saying that this is the US/Canadian Quicken Inc site, not the Reckon site, as such some details of answers here might not be right for your version of Quicken.  You probably will get better details  by asking your question here:
    https://community.reckon.com/

    Note as far as I know the Reckon is basically equivalent to how Quicken US looked in Quicken 2010.

    Of course suggestions about how one might setup their categories would still apply (I will leave that to others to answer).  And recategorization should work about the same in all the version with the exception that I don't believe multiple select in a register was available back then, so it would be search and replace or Tools -> Recategorize or doing it on the Category list window.
    Signature:
    (I'm always using the latest Quicken Windows Premier subscription version)
    This is my website: http://www.quicknperlwiz.com/
  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    I just noticed you posted another question if you could convert from the Reckon version to the Canadian one.   So I'm not sure what version of Quicken this question pertains to.  Please state the version: Help -> About Quicken.
    Signature:
    (I'm always using the latest Quicken Windows Premier subscription version)
    This is my website: http://www.quicknperlwiz.com/
  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    edited August 2021
    Re: this categories question ... I'd look at your most recent national (and state, if applicable) tax returns and determine from them what categories you absolutely need.
    Then look at other things that you routinely spend money on: Groceries, travel, gasoline, clothing, etc.  Some of these you might want to create sub-cats for, such as Clothing:His and Clothing: Hers.
    It's really an individual matter (after the taxable items) because it depends upon how much detail you want to be responsible for maintaining.
    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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