You hit it on the head. Quicken was written as a personal check writer, not a GAAP compliant double-entry business accounting package. Unless you're running a
I have an MBA in finance and 12 years in the "Big 8" (am I dating myself RC?) and have seen every chart of accounts scheme imaginable. I personally record sales taxes as a separate category for a couple of reasons.
Years ago they were deductible Schedule A items along with state and personal property taxes. It always reduced the tax bill by a coupleof hundred and I had detailed backup if I was ever audited.
I'm also curious how much I pay all the various government entities for the year. Sales taxes amount to a couple of thousand, on top of all the other taxes I pay the vultures. For some reason though, I never broke out all the taxes on utility bills -- talk about extortion.
Finally, it was easier for me to put taxes in a separate category than to try to apportion and deal with the taxable/non-taxable issues and different tax rates by municipality. Years ago if I made a purchase in one municipality and returned to the same merchant in another, I could be charged/credited at different tax rates. Also Quicken's crappy little calculator didn't help simplify the effort.
Am I GAAP compliant? Who cares? It's money out of pocket and Quicken lets me categorize it and report it any way I see fit. There is no right or wrong answer when it comes to PERSONAL finance.
"R. C. White" wrote: