Introduction
to Quicken
Quicken
is the leading financial software system on the market today. It is more than just a checkbook
program. It allows you to keep valuable
personal financial records to assist you in budgeting, financial planning, and
income tax preparation. Quicken
consists of three different components--Personal Financial Skills, Small
Business Financial Skills, and On-Line Financial Internet Skills. We will be exploring the Personal Financial
Skills.
First,
some terms you need to know:
File--where all your personal
financial information is stored. This
includes all your financial information, including your checking account,
savings account, cash account, credit card account, bills to be paid, cleared
checks, receipts, paycheck information, and financial reports and graphs.
Accounts--where you track your money
and balances. This includes checking
account, savings account, credit card account, and cash account. All the accounts go in the same file.
Categories--how you use your money. Includes Income (money you make or receive)
and Expense (money you spend). This
includes a different category for each type of income and expense--such as
utilities, clothing, entertainment, rent, etc.
Now,
you are ready to begin using Quicken.
To
Open Quicken
1.
Double-Click
Icon
2.
Start/Programs/Quicken
To
Set Up your Accounts:
If
Quicken has been used by another user you will need to close the existing
windows that are open and create a new file for yourself by selecting File,
New, and pressing (or clicking) OK.
1)
Now
you will work through the guided set-up to set-up your accounts.
a)
Click
on Add Accounts
b)
Choose
Checking to add a checking account
i)
--enter
account name/description. Then click next.
ii)
--enter
a beginning balance ($500.00) and click done
c) Follow the same steps to add a savings account with a balance of $1000.00
d)
Add
a credit card with a balance of 0.
e)
Add
a cash account with a balance of $50.00
f)
Click
done a the bottom when finished
Note: There is a button at the bottom that says (Watch Video). This is a nice tutorial on using quicken.
Now
you are ready to enter data into your checking account. Begin by entering the beginning balance of
$500.00.
1.
In
the date box, change the date to 1/1/99. (Use the dates given for this practice
activity, NOT the current date.)
2.
Tab
to (or click on) the deposit box. Key
in 500.00.
3.
Press
Enter or click on Record.
4.
You
should now show a balance of $500.00.
***Note--Use the tab key to
move from box to box or click the mouse in the box you want to enter data
in. Shift + Tab allows to move backward
through the boxes. The up and down
arrow keys move you through the transactions.***
Transactions
Now you are ready to enter transactions into your check register. Click on the checking button at the left to open the checking register. Transactions are any kind of expenditure, payment, deposit, or other change in your account. Quickfill is a nice Quicken feature that remembers past transactions and tries to automatically complete entries for you. Watch it closely and it can save you keying in repetitive data.
Transaction #1:
You
are having a pizza party. Enter the
transaction as directed below.
1.
Click
in the date field. Enter the date
02/01/03
2.
Tab
to (or click on) the NUM field. Enter
101 as the check number.
3.
Tab
to the Payee field; enter Pizza Hut.
4.
In
the payment field, enter 14.50 (you must enter decimal point).
5.
In
the Category field, enter Dining.
6.
In
the Memo field, enter Party.
7.
Press
enter, or click record to enter the transaction.
8.
You
now show a balance of 485.50
Transaction #2:
You
need more pizza for your party. Enter
transaction #2 using the information below.
1.
Date: February 1 (Note it comes up with that date
for you).
2.
Number: 102
3.
Payee: Enter Pizza. Notice it brings up the title of the Pizza Hut (Quickfill). Press enter to accept this entry.
4.
Payment: Payment 14.50
5.
Category: Dining
6.
Memo: Party
7.
Press
enter, or click record to enter the transaction.
8.
You
should now have a balance of 471.00.
Changing Transactions:
You
made a mistake entering check number 102.
Delete it as directed below.
·
Select
the second Pizza Hut transaction (#102) by clicking with your mouse or using
the up/down arrow key.
·
Select
Edit, Delete Transaction (or Ctrl + D)
Answer Yes to delete.
You
also discover errors on the check 101 transaction entry. To correct it,
·
Select
the Payment field; replace 14.50 with 12.50.
·
Press
enter, or click record to enter the transaction.
·
You
should now have a balance of 487.50
Enter a deposit:
You
received your paycheck and need to record the deposit as follows:
1.
Date: 02/01/03
2.
Check
Number: Enter DEP
3.
Payee: Paycheck
4.
Deposit: 1256.45
5.
Category: Salary
6.
Memo: (leave blank--this field is optional)
7.
Press
enter, or click record to enter the transaction.
8. You should now have a balance of 1743.95.
Additional
Transactions:
Enter
the transactions that follow making sure to enter the categories exactly as
written. When finished, you should have
a balance of $927.31.
21.00 groc
12.45 personal care
12.20 gifts given
Categories
Quicken comes with a preset list of categories. This allows you to see exactly where you spent your money. This makes it much easier to prepare taxes and budgets and make financial planning decisions. You can add, delete, move and rearrange the categories to fit your individual needs.
There are two types of categories. Income categories include items that add to or increase your account balance. Expense categories include items that subtract from or decrease your balance.
1. Enter your February 15 Paycheck in the amount of 1256.45.
--note Quickfill does much of
the work for you.
2. Enter check # 109
Note: You do not have a category called Craft Supplies on you drop down list.
Click on the down arrow by the category box and click on Add Cat.
Type in the Name Box—Craft Supplies
Leave the Expense Box selected in the type section
Fill in other area only if needed
Click OK and enter in check register
You now have a balance of $2085.51.
You now want to write a check for cash
***Note that quickfill fills in the amount for your rent that you’d paid previously. Just key the correct information over the top of what quickfill enters. In the Category section, scroll to the bottom and select “Transfer to Cash Account”.
Select the cash account from the list on the left.
Enter the following cash transactions
--ball game
--supper
**Note: You now have a balance of $81.75 in your cash account.
Reconciling Your Account
Reconciling is the process of reviewing your bank statement with your Quicken record. Any difference is called a discrepancy. Any discrepancies must be corrected in your Quicken records.
To reconcile your bank statement in Quicken, Choose Cash Flow, Reconcile from the menu. Follow the steps provided there.
Reports
Click on the Report Menu. Select the type of report you which to produce. Common reports are:
Cash Flow—report on income and expenses
--comparison reports compare one fiscal period to another
Net Worth—account balances
Other Reports are on menu. Do what meets your needs.
PRINT Reports
Click Print button on report
Check the contents of the help menu for anything you are not sure of how to do.
Drop Down Menus
Quicken provides a few drop down menus in the check register to make entering transaction quicker and easier. These include:
Calendar icon: in the date section allows you to click on the date rather than key it in.
Number field: has a drop down menu that gives you options for entering data in this field, including next #, DEP, ATM etc.
Category: This field also has a drop down menu that allows you to select the category for your transaction. This is helpful if you are not sure about your category names.
Split: Transactions can be split between different categories by selecting the split menu and entering the appropriate categories.
Sort: Transactions can be sorted either by Date or by Number
QuickFill: discussed earlier. This can be turned off, and other changes made, by selecting Edit, Preferences. Take a look at these options to see which ones might be helpful to you.
Quicken Tips
Other tips can be found in the Help Menu under Quicken Tips and Shortcuts.
Writing Checks
Quicken allows you to write checks and
view an electronic version on your computer screen. Checks are stored in your file and can be paid electronically to
an electronic bill paying service or can be printed out on special checks
available from publishers. If you make
a mistake, you can easily correct it before printing (or sending
electronically).
The on-line checks look very similar
to regular checks.
Now
we will use the on-screen Write Checks feature to write checks and enter
transactions as shown on the table below and using the following directions.
1.
Click
on the Write Checks menu in the check register.
2.
Enter
the date of the first item (2/25/03).
3.
Tab
to the Payee section and enter the Name of the Payee (Karls Cash) (note: Quickfill or select from menue).
4.
Tab
through the remaining categories and make sure the correct data is entered.
·
Amount: $76.89
·
Category: groc
5.
Key
in the following address in the address field:
·
Karls
Cash Store
·
109
N. Kansas Ave
·
Selden,
KS 67757
6.
Press
Record Check when everything is correct and a new check will appear. The check will appear below in the list of
checks to print.
7.
Click
the Print button at the bottom of the screen.
You may be asked to enter a check number. and your checks will be
printed
8.
Quicken
will ask you if your checks printed correctly.
If they did, click Yes. Notice
that the check numbers and amounts are then automatically updated in your
register.
9.
You
should now have a balance of $1958.62 in your check register.
Summary
This is just a quick overview of how you can use
Quicken 2003 for personal financial management. Quicken also allows you to perform similar operations for
Businesses. It also helps with
budgeting, tax return preparation, financial planning, and on-line banking.