Ask a Question Sign up for Free 85 Experts currently online. Ask Questions for Free!

Categories VS Accounts - Quicken

I trying to figure out what the difference is between categories and accounts. I have read that Quicken uses [] brackets to indicate categories that are accounts and not just income or expense categories. My question is, why would you use accounts over income or expense categories? Does quicken treat ...

Results 1 to 5 of 5

  1. #1

    Categories VS Accounts

    I trying to figure out what the difference is between categories and
    accounts. I have read that Quicken uses [] brackets to indicate
    categories that are accounts and not just income or expense
    categories.

    My question is, why would you use accounts over income or expense
    categories? Does quicken treat them differently?

    Any help would be appreciated.
    John
  2. #2

    Re: Categories VS Accounts


    "John" <com> wrote in message
    news:google.com... 

    Quicken shows any accounts you have setup in the category list in order to
    facilitate the recording of transfers between these accounts.

    Assume for example, that you have set up Quicken accounts for your checking
    account and for your credit card.

    You make a credit card payment from your checking account, and need to
    record this payment as a debit from your checking account and a credit to
    your credit card account. In Quicken you will enter the payment only once,
    most likely in the checking account, and you will select the [credit card
    account] from the drop down category list. If you then take a look at your
    credit card account you will see that the payment appears correctly and is
    cross-referenced back to your checking account.

    Another obvious every day example is selling shares from an investment
    account and transferring the proceeds to your checking account.

    Hope this helps clarify the situation


    Jim
  3. #3

    Re: Categories VS Accounts

    John wrote: 

    Quicken will set up a Transaction Register for each Account.
    Then, within each Account you can use Categories to track your spending
    or income. The Categories will be available to every account.

    For example, if you write a check for groceries, you would record it in
    your Checking Account, with a category of Groceries. If you charged
    your groceries to a MasterCard you would record it in your MasterCard
    account, with a category of Groceries.

    If you want to know the balance in your Checking Account, or the balance
    on your MasterCard, look in the appropriate Transaction Register, or in
    one of the Account summaries. If you want to know how much money you
    spent on Groceries, create a Report on the Groceries Category.

    Bernie

    Bernie
  4. #4

    Re: Categories VS Accounts

    com (John) wrote in
    news:google.com:
     

    I believe that in typical double-entry bookkeeping, expenses and income
    _are_ treated as accounts. But for these accounts, at the end of the
    accounting period (month / quarter, etc) they are "zeroed out" with
    entries, so they start the new accounting period with a zero balance.

    To make things easier, and permit "checkbook" style bookkeeping,
    Quicken uses the term "category" for income and expense accounts.
    The balances in these "categories" are not explicitly shown, but
    are created "on the fly" when Quicken creates a report.

    Quicken uses the term transaction to record an event which is posted
    to one account and one category, and the term transfer to record an
    event which is posted to two accounts. To view the "balance" in a
    category account, though, you must run a category report. Using the
    accounts as intended allows you to use standard Quicken reports for
    income report, balance sheet, and cash flow report.

    scott s.
    ..
    scott
  5. #5

    Re: Categories VS Accounts

    In accounting terms - - -

    "Bernie" <com> wrote in message
    news:com... 

    Accounts are shown on your balance sheet.
    (A point in time statement of finances - what your own/owe, etc.)

    Categories are shown on your P & L statement.
    (A period of time statement of income & expenses - why did your balance
    sheet change from one point in time to another)
    Categories are really income and expense accounts, in accounting terms.

    Jim M.


    Jim

Similar Threads

  1. Can users create their own accounts?
    By Brian in forum Microsoft SharePoint Workspace
    Replies: 3
    Last Post: 12-07, 05:34 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100