Quicken versus Quickbook

No accounting program does income tax, you have to buy an income tax program for that. Intuit also makes QuickTax.

QuickBooks has a new version out, I think its called Easystart. They did away with the basic version and this easystart version is a step up from Quicken. With QuickBooks you can assign a tax code to the expense and it will automatically calculate the tax. This is tax on product/service not income tax.

Easystart does not have inventory or payroll. It has sales/receivables and purchases/payables. Also you create items when you're doing sales so you can track things better. Easystart is less than $100.

If you're tracking any taxes Easystart would be better than Quicken.

gennif

If you don't have inventory, I'd go with Quicken and then use TaxCut for your taxes. It's easy to write down on paper what you need from Quicken to enter into TaxCut. TaxCut is cheaper than TurboTax and does a better job without cluttering up your desktop with garbage. If you have inventory, then QuickBooks is the way to go, but it has a difficult learning curve and the help files are just about useless. Be prepared to spend some serious time learning it, but after that it's ok. I still use TaxCut to do my taxes.

Bob

It is called Simple Start and even a QB fanboy like myself would have a hard time recomending this version to most users. It is just too limited in functionality.

QuickBooks is small business accounting software, Quicken Premier Home and Business is personal finances software that can also perform some business functions.

**Neither program will handle your personal income tax.**

Intuit sells a tax preparation program called TurboTax.

In the past I have used TurboTax, and information transferred very easily from Quicken. According to Intuit "TurboTax and ProSeries products for tax year 1999 and later all directly import tax-related QuickBooks data" as well.

As to which software to choose to keep track of your income; I use both programs - Quicken for my personal finances, and QuickBooks for my business. Quicken is simpler. Simpler means easier, and also means less functionality. If your business is small, if you do not have payroll, if you *want* to track business and personal finances with one piece of software, then Quicken Premier Home and Business might work well for you, in conjunction with Turbo Tax.

Might I make one suggestion? Please, invest in a session with an accountant (no, I am NOT an accountant). There are things you need to know about start-up costs, maintaining records, tax payment schedules, state sales tax, etc.; and the advice you get now could save you a lot of time and money later.

Quicken Premier Home and Business will not handle inventory so it's good only for a service business.

Bob

I agree, one should always choose their tax software based on the number of Icons its install program places on your desktop.

If you have inventory, then

It's the principle of it. Intuit fails to understand that they do not own my computer, I own it.

Bob

Yes you do, that is why the user is given the option to install the Icons or not. Not unlike practically every other program on the market today.

Why not just stick with the cheaper resaon? We all know that was the real desiding factor for you, and not icons placed on the desltop that can be removed in seconds because you failed to read the on screen notice.

The last time I used Turbo Tax (some years ago), there was no choice. Maybe they are finally listening to users. And what is wrong with price? If both will do the job, and they will, then it is a waste of money to pay more.

Bob

In the real world you get what you pay for. Turbotax in the hands of a user that knows what they are doing is amazing. Just when you think it can't get any better, you start up the program for a new year and see that you were wrong. It just keeps getting better.

Yes, I've heard the saying, but many times we don't get what we pay for, and that's the real world, too. I'll take a look at it again this year and let you know which one I used.

Bob

Hi Bob,

Thank you very much for your reply. (And thank you to everyone else for their replies, particularly Gennif who replied first.)

What you suggest is one option I have been entertaining. I have been using TaxCut for personal income taxes for the last few years. I used TurboTax for my 2000 return but had a hefty tax bill that year since I had made some money on the stock market and a good proportion of it ended up going to the kleptocracy in Washington. That left me with a bad taste in my mouth which was probably not really the fault of TurboTax. However, I am more familiar with TaxCut now.

I have noticed that I neglected to mention that my business will be mainly based upon developing software that I will be marketing to a few customers with long pockets, like hospitals, universities and maybe govt. agencies. Hence I will have inventory but few items and a few (hopefully lucrative) sales.

Thanks again, Peter.

I was thinking along those lines. I am thinking of starting small as a sole proprietor with no payroll, working in the basement. I will be developing software to sell, at a fairly high price, to a few targeted customers like hospitals and universities. (I am assuming my competitors will need to sell at higher prices due to higher overhead.) I am more familiar with TaxCut so may use that in conjunction with Quicken Premier Home and Business. I would use the latter to satisfy the IRS requirements on book keeping.

You are probably right. However, I am a bit reticent about seeing an accountant before I make some money. In this state, unincorporated businesses have to file an annual personal property (used in business) return. I would be exempt from any actual taxes (since my personal property would have a value well under $10K) but some types of business must pay a $300 fee to file. As far a I can tell, there is no fee for sole proprietorships but I may be wrong. That may necessitate seeing an accountant before I actually make any money. I will contact the state govt. about the fee but there may be other such traps as well.

Thanks very much for your help, Peter.

If you DO decide to use Quicken.. do yourself a favor and switch to Turbo-Tax. It is so much easier to transfer data within products from the same manufacturer.

Something else I meant to ask. What version of TaxCut should I get? It will be a pretty basic business to begin with. Sole proprietorship, no employees. I could contact H&R Block and ask them but I would suspect companies would most likely suggest the more expensive version. They always seem to want me to get the state return program which I am never interested in since e-filing the state return is usually a breeze once I have done the federal return. However, the state does make it a bit more complicated for businesses with this personal property return and what not.

Thanks very much again, Peter.

Many thanks for the suggestion. Since my business will start out fairly basic, what version of TurboTax should I get? Business ($100), Premier ($70), or the home versions; Premier ($40) or Basic ($20).

Thanks again, Peter.

Suggestion: Don't get TaxCut - get a tax attorney. You'll pay, hmmm, $300-$500. Maybe a little more, maybe a little less. What you get, at a minimum, is a righteous dude's signature on the bottom of your return(s). This results in the IRS saying: "We can't make anything here; put this return in the 'no sense fusking with this' basket."

You might get more.

One of my chums, following the above recommendation, had his tax attorney say: "I think you've been paying too much property tax. I'll make it go away." And he did. To the tune of a $5000 tax reduction per year!

These tax attorneys have a nation-wide organization. Tell me your city and I'll get my attorney to look up a member in her directory.

These tax professionals have a sooper-dooper program they get from Intuit. You send them a backup of your file and this magic Intuit program gins up all the stuff they need to prepare the returns and generate your year-end journal entries.

You, essentially, push a button and, in the fullness of time, as much as a

100-page return and supporting documentation comes to you, ready for your signature. Point is, absolutely NO additional expense and ZERO time is involved on the tax-return activity. All the effort, time, late nights, and mumble-mumble-carry-the-two business simply does not exist when you hand off the project to a professional.

It's a miracle!

Admittedly, you paid a non-insignificant amount for it, but it's similar to getting your yard mowed, your car washed, or the love of your life a "makeover." One moment your facing grimness with a steely resolve, next moment you see beauty! And not a drop of sweat to be found!

As you can probably tell, I'm in love with the concept.