Quicken Classic Business & Personal for Mac: one file, or two (for business & personal)?

bob2021

I'm running Quicken Classic Deluxe Version 7.9.1 (macOS) and QuickBooks Desktop Mac 2021 V20.0.14 R15.

I'm considering changing my Quicken subscription to Quicken Classic Business & Personal for Mac when my Quicken subscription expires (/renews) in a month, and importing my QuickBooks data. I'm trying to determine whether it will be better for me to have one file and use categories, etc., to keep business and personal transactions separate, or have two have separate files, for business and personal. I've done some reading on this topic in the forum.

My part time business is a sole proprietorship (I may change to a LLC (with no partner(s)). I've never had payroll, and probably never will. My business accounting needs are fairly basic, and my business currently has very little activity. I do my own bookkeeping, and my own taxes (using TurboTax).

I do not (currently) use Quicken to track any business income nor expenses. I don't have any online linked bank / credit card accounts, and I currently don't track investments (like stocks, etc.), and don't use Bill Pay.

One  disadvantage of having two files, is that I can't see both data sets simultaneously, although that may not end up being a big deal for me.

I suppose having all data in one file would make it simpler for me to make owner contributions and owner withdrawals transactions, where a transfer is made from business to personal, or vice versa. Otherwise, I can make separate entries into both files as I current do with QuickBooks and Quicken, and if there is any description of the transfer I want to make, I can copy it, switch files, and paste in the other file. I don't (tax) write off a home business office. I can't recall doing any split expenses in QuickBooks where part of an expense is paid with a business category, and the other part of the split with 'owner contribution'. And if I did, and used two files, I imagine I could do such a split in QuickBooks, and then do the corresponding bit in Quicken B & P. (I know it's not good practice, but I occasionally pay for something with a business credit card and track the expenses in QuickBooks, using an 'owner contribution' category.)

I (also) have a separate question: I assumed Quicken Classic Business & Personal for Mac is "Classic", and not web-based; is that correct?

Any recommendations for doing things with one, or two files, for me? In case it helps, I'm willing to switch between two files if it makes things simpler.

volvogirl

Right, Quicken is a Desktop installed program. It does have a mobile app that syncs with your desktop data. I don't think if you can transfer Quickbooks data into Quicken.

For data files……You should follow your tax return. If you report your business on schedule C in your personal tax return you should have personal and business in the same data file. And actually you do not report owner contributions and withdrawals on your tax return. Your business is a disregarded entity and all the business income and expenses are your personal income and expenses in the first place. You just fill out a Schedule C. The net profit or loss is your income.

bob2021

Thanks for confirming it is desktop.

Quicken support told me:

"You are able to import files from quickbooks in to quicken but not to a specific location.

Once you import the files to Quicken, Quicken can help to re-categorize them so that they can go to either personal or business.

If you want to keep things separate, you can you just need to create a new file and import that information (from QuickBooks) to that file."

I do file a schedule C in my personal tax return. I so far haven't used either Quicken or QuickBooks to directly communicate with TurboTax, although I do create reports in both, and then enter data manually in TurboTax, based on those reports. QuickBooks reports like itemized P&L (but then, as I wrote, I enter each type of expense, including custom ones, manually in TurboTax).

I agree that you don't report owner contributions and withdrawals on your tax return. In QuickBooks, if I pay a business credit card balance with a personal bank account, I use a category of "owner contribution", and if I take a draw, I use "owner withdrawal". If I make a purchase with a business credit card for personal use, I use: "owner withdrawal" as the category, or (very rarely in the past) do a split: "owner withdrawal", and then, say: "internet service" for the business percentage of the transaction. That way if I got audited, and made a purchase for something that wasn't business-related, but I tagged it as "owner withdrawal" (which I do not deduct on my Schedule C), I'm covered. (I don't want to get into a debate about the potential risks of doing such split transactions, depending on what was purchased; that's just an example.)

It appears from what you wrote that by using one file, it may simplify doing my taxes.

This all brings to mind another question, which is if I import my QuickBooks data into my one (and only) Quicken file, and categorize things—if it later turns out to not be a great situation, can I export (and somehow remove) my business transactions from my one file, then import that data into a second, business-only file?

Thank you for your insights.