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Quicken® vs QuickBooks® for Farm Financial Recordsfor Farm Financial Records
Damona DoyeDamona [email protected]
Extension Economist and Regents ProfessorOSU Agricultural Economics Department
Lori ShipmanLori ShipmanExtension Assistant
Computer use for business purposes by region50
354045
202530
20052007
5101520 2007
2009
05
Northeast North Central
South West USCentral
Source: USDA/NASS, Farm Computer Usage and Ownership, August 2009
Computer use for business b f l lpurposes by farm sales class
80
506070
10203040
20052007
010 2007
2009
Source: USDA/NASS, Farm Computer Usage and Ownership, August 2009
Off-farm work by principal operator70
50
60
20
30
40
0
10
20
Under 25 25 to 34 35 to 44 45 to 54 55 to 64 65+
Principal occupation is farmingPrincipal occupation other than farmingPrincipal occupation other than farming
http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1,_Chapter_1_US/index.asp
Farm organization
3.9
0.4 1.3
7.9Family or individual
PartnershipPartnership
Family held corporation
Corporation, other than family heldOther: co-op, estate or trust institutional etc
86.5trust, institutional, etc.
Source:http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1,_Chapter_1_US/index.asp
Recordkeeping suggestions…
Start simple
Be BeBeconsistent
Bedisciplined
Get BeGet assistance enthused!
Everyone should use Quicken.*
Some should also use QuickBooks*Some should also use QuickBooks .
* Or a similar product. No endorsement of a specific commercial product is intended or implied.
Quicken features… and QuickBooks?
Inexpensive Not expensiveFlexibleEasy to use
Less forgiving and less easy to use
Able to “grow” with the business
Able to “grow” with the business
Allows for both farm and family
Allows for moresophisticated y
recordsCash accounting
business useDouble-entryg
Quicken QuickBooks
Cash accounting Accrual accountingCash accounting Personal financeFamily living expenses
Accrual accounting Small business finance InvoicingFamily living expenses
Off-farm income Investment income and
InvoicingAccounts
payable/receivableexpenses Payroll
Use
Quicken QuickBooks
File Company File Accounts
CompanyChart of accounts:
asset, liability, equity Categories
, y, q yChart of accounts:
income/expense Tags Payee
pClasses Vendory
Paid bye do
Customer
Terminology
QuickBooks Organization Choice (examples of impact on accounts/tax line)(examples of impact on accounts/tax line)
Account name
Multi-member LLC, Partnership Regular or C
Corp S Corp
Sole Proprietor, Single Member name or LLP Corp, S Corp LLC
Accum.depr.
B/S-Assets: buildings/other
B/S-Assets: buildings/other Unassigned
Capital stock n/a Unassigned n/a
Payroll B/S-Liabs/Equity: B/S-Liabs/Equity:Payroll Iiabilities
B/S Liabs/Equity: other current liab.
B/S Liabs/Equity: other current liab. Unassigned
Dividends paid Unassigned Unassigned n/apaid
Draws Member/partner n/a
Sched F: Sales ofCrop sales Income: Gross
receiptsIncome: Gross receipts
Sched. F: Sales of livestock/products raised
Quicken QuickBooks
Enter transactions in Enter transactions in register
Write checks: forms (e.g. invoice)
Write checks: personal
Enter paymentbusiness with voucher
Enter bill, pay bill,
Enter depositassign check #
Estimates, invoices, &
Passwords: file, transactions
payments or receiptsMulti-level passwords
transactions
Data Entry
Quicken QuickBooks
All manual Payroll subscription All manualCreate categories,
accounts
Payroll subscription service
Employee recordsCalculate
p yManual can be
enabled
Payroll
QuickBooks Payroll ProductsOnline Payroll SoftwareBasic: $25 per month+ (no state tax forms)Plus: $39 per month+
QuickBooks Payroll SoftwareUp to 3 employees, $129 billed annuallyUnlimited employees, $229 billed annually
I i E h d P ll Intuit Enhanced PayrollUp to 3 employees, $199.20 billed annuallyU li it d l $279 20 bill d llUnlimited employees, $279.20 billed annually
QuickBooks Assisted Payroll Service $60/ th $60/month+
Quicken QuickBooks
Memorized ListsMemorized transactions
Financial calculators
Lists ItemsVendorsCustomersEmployees
Other
Quicken QuickBooks BankingC i
Company & FinancialC stomers &Comparison
Spending Customers &
Receivables Sales Tax
Easy Answers
Sales Jobs, Time & Mileage V d & P blGraphs Vendors & Payables Employees & Payroll
B ki Also, customized folders for reports
Banking Accountant & Taxes Budgets
Reports
Quicken QuickBooks
Videos Online assistance Videos Forums, blogsQuicken Inner Circle
Online assistanceQuickBooks coach VideosQuicken Inner Circle Videos Live Community
FacebookTwitter
YoutubeLinked in
Assistance
Linked in
Cool things in both Quicken and QuickBooksDate: Y, R, M, H, TFind/replaceAttachDownload transactions Import/exportGraphsGraphsBackup
Possible motivations for keeping farm records Keep what is needed for tax purposesKeep what is needed for tax purposes Be prepared for the unexpected Planning aheadg Communications Employee managementp y g Business analysis Be able to accurately identify shares of income and
expenses Determine cost of production per unit Know where profit (and/or loss) centers are in the operation Know where profit (and/or loss) centers are in the operation
Records for farm tax purposes
Quicken QuickBooksQuicken QuickBooks
Farm income and Advantageexpenses Advantage
1099 Advantage
Employee payroll Advantage
Asset sales andAsset sales and purchases ? ?
“It is easier to do a job right than to explain why you didn’t.” … Martin van Buren
Records for being prepared
Quicken QuickBooksQuicken QuickBooks
Knowing cash reserves, = =cash flow, margins
Employee records Advantage
List of accounts, credit card numbers = =
A t d i t i Ad tAssets and inventories Advantage
Records for planning aheadQuicken QuickBooks
Budget features Advantage
Budget to actual comparisons = =
Financial calculators Ad antageFinancial calculators Advantage
Retirement planning Advantage
Investment analysis Advantage
Estate planning ? ?Estate planning ? ?
Records for communications
Quicken QuickBooksQuicken QuickBooks
Business partners Advantagep g
Family Advantage
Lenders = =
Landlords = =
Heirs
Records for employees
Quicken QuickBooks
M l P llManual Payroll Advantage
Payroll taxes Advantagey g
Employee payroll Advantage
Records for business analysis
Quicken QuickBooks
Enterprise analysis Advantage
Tracking costs, returns for multiple years = =
Analysis by customer Advantage
Analysis by item Advantage
Financial statements Advantage
Quicken workshops
3 hours3 hoursSet up fileAdd accountsAdd accountsAdd/edit categories, import farm categoriesCreate classesCreate classesEnter transactionsView sample reports, graphsp p , g pBackup
www.agecon.okstate.edu/quicken
QuickBooks workshops p(expected) Day 1 Day 2yCompany setupChart of Accounts
y Liability accountsAsset accounts
Lists Vendors Customers
ReportsBudget features I t d ti t ll Customers
Items
Enabling classes
Introduction to payroll
Other bank accountsPaying billsR di iRecording income
Our plans for QuickBooks
1 day in-service for Extension Educators1 day in service for Extension Educators, April 13
Basic instructions online in departmentalBasic instructions online in departmental publication database
Pilot workshop(s)Pilot workshop(s)Workshops at national flower growers
conference in Tulsa Novemberconference in Tulsa, November
QuickBooks Resources for Ag OnlineFlagship TechnologiesFlagship Technologieshttp://www.goflagship.com/products/cbkhome.htm
Everyone should use Quicken.*
Some should also use QuickBooks*Some should also use QuickBooks .
* Or a similar product. No endorsement of a specific commercial product is intended or mplied.
