Separating accounts

valvidya

I have Quicken Classic for Windows-Business and Personal. I have downloaded my business and personal accounts already. I have hidden the personal account, but I still see it mixed into my totals. I need to know how to separate the accounts so my totals only represent the business. I don't want my personal finances to confuse me as to how much I really have in the business. The accounts are in two separate banks, so, hopefully, this will be easy. Thank you.

NotACPA

Why can't you simply exclude the Personal account(s) from your saved reports in the combined file?

Your combined net worth includes both the personal and business accounts, so — since Q should always mirror reality — the 2 sides should really be in a single data file. In the future (if not already) some lender is going to want to know your ENTIRE financial picture, and that's easy to produce from a single data file …and much less easy with any separation.

valvidya

OK, thank you. Can you tell me how to exclude the personal accounts from my saved reports?

NotACPA

There's a Gear icon in the upper right corner of the dialog to create the report. Click it and then click the "Accounts" tab to select the accounts to include/exclude.

And, based upon your question, am I correct in assuming that you're VERY new to Q?

volvogirl

ALSO…..For an income or expense category to show up under Business you have to assign it a Schedule C tax line number. Go into Edit Category and assign it one. If you need to see a schedule C, here's the blank form….
http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

You can either assign the tax line number to an existing category or you might want to set up a new category for it to keep the existing one under personal if you have the same expense for both personal and business.

To check the tax line assignment open the Category list by either clicking on the Category Icon or go to Tools-Category List or Ctrl+Shift+C. Then select the category and right click on it to Edit it. Click on the Tax Reporting Tab and check the box for Tax related and pick a Schedule C: tax line item.
https://www.quicken.com/support/how-assign-tax-form-line-items-category

valvidya

Yes, I just started using Q. I'm a nurse practitioner, not a bookkeeper type. I had already excluded my personal accounts, but they are still showing up in recent transactions, income and expense, top payees, etc. on the Home screen. I just thought I could keep track of the business instead of everything all mixed in together.

As to income or expense categories and Schedule C, that's way beyond my wheelhouse. Thanks.

volvogirl

Did you just start doing the business? You haven't filed a schedule C before? You need to file Schedule C in your personal tax return for your business.

Here is some IRS reading material……
IRS information on Self Employment

https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

IRS guide to business expense resources

https://www.irs.gov/forms-pubs/guide-to-business-expense-resources

Publication 334, Tax Guide for Small Business
https://www.irs.gov/pub/irs-pdf/p334.pdf

1040 Schedule C
https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

1040 Schedule C Instructions
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf

NotACPA

My wife is a retired NP (ACHPN, APRN-BC). She never had her own practice (always an employee) but my late wife and I both had our own consulting engagements that we reported on Schedule C.

The first thing that you need to do re: Schedule C is to get one and figure out how your Business income and expenses relate to the lines on that form. THEN, you need to assign the appropriate Sched C tax lines to your categories in Q.

It's via those tax line assignments (NOT the category names) that Q determines what's Business and what's Personal … and the lack of a tax line indicates a personal item … which is probably why everything is showing up in your reports.

Lastly, unless your practice files it's own tax return (NOTE TO OTHERS: NPs can "hang their own shingle", much like an MD, so it's quite possible that the business/practice SHOULD be separate) it should be included with your personal items, at least for tax and overall Net Worth purposes. But the business reports in Q, once your accounts and categories are created, can readily identify how your practice is doing.

volvogirl

Here's where you assign the business category tax line items

NotACPA

I'd also suggest that you reference this thread, especially since it describes how Newbies can get some extra help in starting to use Q.

https://community.quicken.com/discussion/comment/20457284#Comment_20457284?utm_source=community-search&utm_medium=organic-search&utm_term=%22new+to+quicken%22

valvidya

Oh boy, OK, a CPA with a bookkeeper have done my taxes for the last 20 years of my independent practice. I'm going to be doing all of the bookkeeping now. I will try to understand and work on this over the next week or two. The Holiday will set me back in time.

Thank you all. You don't know what you don't know…