Help Setting Up Quicken

Hi, CDavey.

Wow! How much data do you have to enter?

If your finances are like mine, it might take months or even years to enter more than 7 years worth! But if all you must enter is a monthly paycheck for income and a single "miscellaneous expense" category to record that you spent it all, then I guess it could be done quickly enough.

In other words, there's no way that we can answer your question without some idea of your personal finances.

Ordinarily, it's best to enter Quicken data chronologically, reconciling periodically as you go. It is theoretically possible to start at some arbitrary date, like 1/1/07, and then later go back and enter transactions leading up to that date, it's very hard to get the 12/31/06 ending balances to agree with the 1/1/07 beginning balances. But you may be much less fussy about such niceties than I would be.

So, in your case, a workable plan might be to first create a new Quicken file with a 1/1/07 starting point and enter all your 07-08 (to date) transactions, just so that you can file your 07 tax return. (You didn't mention any other years, so I assume they are all in order, taxwise. Where did you get the data for those tax returns each year?) Then, revive your

2003 file and chronologically enter all the transactions since then up to 12/31/06. Reconcile any differences between the end of the revived file and the beginning of the new file, then merge them into a single continuous file by creating the new file and importing from both of the old ones. Keep both old files intact until you are sure the new one is complete and working properly.

For the simplest tax situation, you don't need Quicken at all. Just hand your "tax prepper" your 2007 W-2 and tell him/her to use the Standard Deduction.

For any but the simplest financial situation, this could be a very long, large and tedious project. If you need further help or advice, please tell us more background information.

Good luck!

RC

Hi R.C.!

What a very helpful and thorough response R.C., many thanks!

Let me fill in some details. I have most of the files from my checking account downloaded and ready to go into Quicken so the data entry is a snap. However, I remodeled my house in 2001 and was computer-challenged that whole year so that is the year (along with

2000) that I will have to enter by hand. Not a big deal really, since there's no deadline for any of this.

Usually, what I do is a cash flow printout and that is what goes to The Prepper. I have been giving them that for several years so I guess maybe I have up to 2006 in Quicken as well. Not sure about this.

So, mainly, I want to load up all the files for 2007 and generate the printout for my taxes. That's the first priority.

Next, I want to build a Quicken that starts in 2000 and goes forever. I must have more data in there than I think I do. Some filenames got very strange looking toward the end of 2006. I need to get cozier with the file structure & naming protocol.

Anyway, as I progress into this further I will be calling upon your obvious expertise in these matters. Thanks for the response, I posted this on the other forum and got nothing, glad to have found the right place!

RC,

So, I gave you more personal information and the lines have gone dark it seems. Please see my previous message and tell me what else you need to know to help me sort this all out. I'm countin' on ya' RC!

Hi, CDavey.

Sorry for the delay, but I didn't realize you were waiting for a further response. Not much I can add to what I already said - and what you said you were probably going to do: start at the beginning (however you define "the beginning") and enter everything chronologically to the present. A tedious job, but not hard.

I can add comments on a couple of points in your second post. But I need to remind you that this advice is free and I don't claim it to be worth more than you are paying it for. You really should be talking with your "tax prepper"; if he is unable to help, then you may need to talk to someone else, maybe even a local CPA.

Remodeling. A much more complex topic than it may seem to be. It almost always includes a mix of repairs and improvements - and those two intermixed kinds of expenditures require significantly different treatment. It's always easier to take separate subtotals and add them together than it is to take a single conglomerate total and separate it into its many components. So the more detailed classification you use as you go, the easier it will be to sort out the final accounts or categories when your remodeling project is finished.

For instance, adding a pool to a house that doesn't have one is clearly an improvement. It's an asset and adds to the value of the property. (Accountants will want to record the COST of the improvement; the tax assessor and the Realtor will be more interested in the VALUE that it adds. Those are NOT usually identical amounts!) Repairing a leaking pool is clearly repair and maintenance. That's an expense category that does not add value, but merely restores value that was there but has deteriorated. But most pool projects will involve both. You might repair a leaking small pump by replacing it with a larger pump. But that's easy compared to the problems of sorting out the expenses of, say, modernizing a kitchen.

Neither repairs nor improvements of our residence is currently deductible, so many users will ignore the distinctions. But the cost of improvements can be added to the cost of the residence and, when the property is sold some day, deducted from the selling price in calculating the gain. But the gain may be less than the exemption, anyhow, so even that information may be less important to the tax man than to you, personally.

Good luck.

RC

Hi R.C.,

Thanks for the reply, no problem with the delay, this stuff has a pace of its own.

My remodel consisted of jacking up the roof and replacing the house and putting the roof back on. So there is nothing but new house under the roof, which from what you have said should make things easier to set up. Mostly, this is being done ofr my own edification since I have no idea what it cost to do the job, and I'd like to know how good I am...to the penny.

Thanks so much for your input. It is clear and VERY helpful.