Is there a way to change a tax year in recording a payment in the bank account?

PeteSal

I just started with Quicken and I accidentally accepted 3 payments to Fed, State and Local and now they are showing in the P&L as this years taxes paid.

Frankx

Hi again @PeteSal

So I would disagree with what was said above.  While Quicken is mostly designed for individuals (virtually all of whom are on the "cash basis"),  it is very possible to effectively use it for accrual accounting.  You would need the Home, Business and Rental Property version because that has features your need - like tracking of accounts receivable and accounts payable, that are not provided in the lower level versions.

Most folks who take this route, use Quicken just like cash-basis companies do, but focus mostly on transactions that happen in the first one or two months of the year, and those that occur on the last one or two months.  They record all transactions as they occur in real time, but at the end of each year, they make adjusting journal entries that convert the data in Quicken from cash basis to accrual as needed.  It involves more work than using an application that is specifically designed for accrual accounting, but for small entities it is very manageable.  

If you decide to try using Quicken for your corporate bookkeeping, I would suggest that you setup two Quicken files - one for personal and another for the corp.  You should also discuss the "how to do it" part with your CPA or tax preparer.

Frankx

Frankx

Hi @PeteSal,

What was the date on the check(s), or if paid some other way - like by credit card - what was the date of the transaction(s)?

If the date(s) were prior to 1/1/2022 - those payments should be on the P&L for 2021, regardless of which tax year the apply to.  If the date(s) were 1/1/2022 or after - those payments should be on the P&L for 2022.

Expenses on a "cash basis" P&L follow the dates the transactions occur - regardless of the tax year.

Frankx

PeteSal

Check was dated this year but for last quarter 2021. I was using Quickbooks Online and they used the accrual system. And my taxes were filed with that amount for 2021. I just changed the entries to another category that is not tax related as I am starting this year fresh. However, I still have payroll and will be using an accrual system. So maybe Quicken is not the right vehicle for me.

Chris_QPW

Quicken is a cash basis only system.  If this is a one-off thing you might be able to work around it by changing the date of the transaction, if not, then you are probably right in that Quicken isn't right for you.

For instance, Quicken knows nothing about payrolls or inventory, the business features had schedule C businesses in mind when it was created.

PeteSal

And I will use that for the personal side where I have a side business and use a Schedule C. But I think for the Corp, I will either need to get something else or stay with Quickbooks.

Frankx

Hi again @PeteSal

So I would disagree with what was said above.  While Quicken is mostly designed for individuals (virtually all of whom are on the "cash basis"),  it is very possible to effectively use it for accrual accounting.  You would need the Home, Business and Rental Property version because that has features your need - like tracking of accounts receivable and accounts payable, that are not provided in the lower level versions.

Most folks who take this route, use Quicken just like cash-basis companies do, but focus mostly on transactions that happen in the first one or two months of the year, and those that occur on the last one or two months.  They record all transactions as they occur in real time, but at the end of each year, they make adjusting journal entries that convert the data in Quicken from cash basis to accrual as needed.  It involves more work than using an application that is specifically designed for accrual accounting, but for small entities it is very manageable.  

If you decide to try using Quicken for your corporate bookkeeping, I would suggest that you setup two Quicken files - one for personal and another for the corp.  You should also discuss the "how to do it" part with your CPA or tax preparer.

Frankx

PeteSal

I have 2 accounts set up. One is personal and one for the Corp. I don't have any A/R and except for taxes, no A/P.

Rocket J Squirrel

For reporting, you can use Tags. I use Premier and have a Tag for each tax year, so can filter reports accordingly when needed.

PeteSal

I have done that too.

PeteSal

And I forgot to mention I do have the Home and Business and Rental version.

Frankx

If that is the case - you should be good to go.  I would still advise that you talk to (or meet with) your CPA or tax preparer to make sure that they are comfortable they'll be able to get the information needed come tax time.

Frankx

volvogirl

Small point......you said you have 2 accounts set up.  You mean 2 Files, right?  Then each File has Accounts set up in it.

Chris_QPW

Sorry, I guess misunderstood the feature of Home and Business

PeteSal

Yes, on two files with accounts in them. And add long as I can get a P&L and Balance Sheet, I think the CPA will be okay but I will check with him.

NotACPA

@petesal In QB, the reports that you're discussing are called "Profit & Loss" and "Balance Sheet".

But, those are business terms, and Quicken is a personal software product.

The counterpart reports, in Q, are called "Income & Expense" and "Net Worth".

Assuming that you select the proper accounts/categories/etc, the only difference is the Names.

PeteSal

The P&L worked fine. I compared it to QuickBooks and it matched. I must have categorized everything correctly. Maybe some of the accounting courses I took in college 40 some years ago are finally paying off.

Frankx

@PeteSal

Nice work!

Frankx