Computer de-literate

[jstarranch]

I want to keep up with all my livestock doings this year for Taxes etc . . . on the coumputer so all I have to at the end of the year is print it out for the CPA. Currently I throw all my reciepts and stuff into an accordion file and then have to sort and record just to begin to get ready.
Can anyone provide me with some insight on how to get started.any recommendations on
What programs to use and etc. . . will be greatly appreciated
Thanks in advance
Jeff

 

[Running Arrow Bill]

As a person who has had accounting courses as well as a little computer savvy since 1982...here's what my experience has been:

Have tried various computerized accounting software, including "Quick Books" (used by a lot of people, but is NOT "quick"). Other programs I've tried are using about same format. Really helps to have some knowledge of accounting principles (i.e., debits, credits, chart of accounts, etc.).

The biggest problem I've found with all these programs is that it is a little difficult to "reverse an entry" should you goof up unless you are more accounting savvy than I am--my patience is limited in this respect.

Resultantly, I have resorted to a "paper system": Put all receipts in an envelope for the month. End of month: use the "pen & ink method" to hand enter all expense categories on a paper spread sheet. (Takes about 15 minutes). At end of year, merely total up all of your expense categories and send the summary figures & categories (chart of accounts) to CPA. (I average about 50-75 expense receipts a month).

Works for me and has turned out significantly less time than trying to screw with one of those "quick & easy" (duh...) software programs.

 

[dd]

For years I've dreamed that a computer would have a lid on it that I could just dump the reciepts into and it would take it from there and spit out all the totals. I do have a program that I use and for better or worse it works for me. Its a bit outdated though, I have an old 486 computer that I use.

 

[tom4018]

We made a spreadsheet with all the common tax items listed. As we purchase something we just enter it and it updates the totals. Print it at the end of the year and take it in to tax guys office. Some items we list at seperate if we are not sure how they need to be listed but feed, fuel , vet and other common items we list in their own column. We do the same for income so we can keep tack of what our calves do. Hope this helps.

 

[Jeanne - Simme Valley]

I have used Quicken for many years. It is super simple. You set up a checking account & a cash account. Post everything like writing a check or paying cash. Go to Reports, Cash Flow - Itemized - type in the dates for the report (1/1/04 - 12/31/04) and it totals everything. Of course, some items are just household related, so you put them in a household "file". It's pretty user friendly.

 

[txag]

I prefer Microsoft Money to Quicken......they both do basically the same thing but I've found MM to be more user-friendly. You can set up all your individual categories......feed, vet, a.i., advertising, fertilizer, herbicide, cows bought, cows sold, bulls bought, bulls sold, etc. You can set up separate accounts as well: CDs, Money Markets, general checking, farm account, loans as well as track your on-line investments. Basically, you're doing your check registry online & you not only enter the payee & amount, but you also choose a "category" that fits the description of what the check was written for. The checks can be split if you bought things that fit in two different categories. For example, you charged feed & fertilizer at the feed store during the month & at the end you wrote one check. It's easiest to keep up with it throughout the year & then at tax time just print out your reports for whichever categories/accounts you want for the "Previous Year" & everything's ready for the accountant.

Free Trial: http://www.microsoft.com/money/freetrial_info.mspx

 

[docgraybull]

I've got to agree with RAB that the "paper system" and the "pen and ink method" are the quickest, simplest, and most accurate for me. Once I dig receipts, check stubs, etc. out of pickup door panels, chore coat pockets, check books, wallet, hat bands, and wherever I may stuff them at the time, I'm just glad to get them recorded somewhere. And a piece of paper is just as quick and easy as booting up the computer, looking for the right file, the right ledger within that file etc......

 

[eric]

I had been using Quicken for about the last 10 yrs, and then switched to Quickbooks Basic 2002 a couple yrs ago when we upgraded the computers. WOW! what an upgrade Quickbooks is to Quicken. It does everything Money does (which we still use at home), but it seems to me to be much easier to use and you can have alot of subaccounts in every main account, so you can separate the hay from the feed, the medicines and such. Quickbooks was kinda costly ($300 or so) but I'd highly recommend it for any small business that does most of the books in house.

 

[Craig-TX]

Interesting thread. This is one of those subjects where there's not a right or wrong way, it just depends on what suits you.

I used Quicken for many years on the personal side. There are certain advantages, mainly searching for old transactions and doing sorts for tax prep. But about two years ago I quit it. Things finally got to the point where it seemed more like I was working for it than it was working for me. I'm back to plain old paper.

QuickBooks is powerful and sophisticated enough to meet the needs of just about any small business. Never tried MM but have heard it's more user friendly and intuitive. The nicest part is printing financials and reports anytime you need them.

But for cattle I just use paper. We don't have any full time employees and when 1099s are needed they're easy enough to do manually. I will confess to having quite a few spreadsheets but that's just because I like messing with the numbers and tracking different things. Then again we're not that sophisticated of an operation. We're just producers and don't have to record much except income and expenses.

Regardless of how somebody chooses to go the main thing is staying reasonably caught up.

Craig-TX

 

[dun]

We just use plain old Excel. A new spreadsheet each year for that year. Eah column heading is for a particular category on the tax form. Print it out once a year and shoot it to the CPA

 

[Alan]

I too have used quicken for years, my wife and I have owned several business's in the past, and currently have two. Quicken is simple and gives me all the info I need to take to my CPA. Quicken is simple to set up and simple to edit, it's easy enought that I prepare my own taxes on two business and have the CPA do the same (he is always much better at it than I am, I just like the double check), my point is it is so easy even a moron like me can do it. Sounds like a testimonial for Quicken, but it is as easy a keeping a check register. I put all reciepts in my wallet as I get them and then put them on Quicken then they go into the file cabinet and very rarley do I ever have to look for them again. I have used Quick books in the past, but in the short time I used it I found that Quicken did everything I needed it to, but I can't give Quick Books a fair critique, I just don't have much experience with it, we have years of data on Quicken...MAKE SURE YOU BACK UP YOUR FILES!! on whatever system you get.

Just my opinion

Alan

 

[Frankie]

Another vote for Quicken. Our version is so old it's not supported by the company any more, but then nothing ever goes wrong with it. We have a separate bank account for our ranch. Once a month someone sets down, enters all the checks written and balances the checkbook. At the end of the year it's very simple to roll up a report for the CPA. We keep a bogus "cash" account for those small items that we don't actually write a check for. Good luck....

 

[Jeanne - Simme Valley]

I had been using Quicken for about the last 10 yrs, and then switched to Quickbooks Basic 2002 a couple yrs ago when we upgraded the computers. WOW! what an upgrade Quickbooks is to Quicken. It does everything Money does (which we still use at home), but it seems to me to be much easier to use and you can have alot of subaccounts in every main account, so you can separate the hay from the feed, the medicines and such. Quickbooks was kinda costly ($300 or so) but I'd highly recommend it for any small business that does most of the books in house.

The updated Quicken does all the above & all that was listed in Money. Just depends on what's available to use. Any computer program takes time to post everything. The only way it is most useful, is if you post at least once a month when you balance your bank account (which you do right in the program). Just post everything in your checkbook in the Checking Account, and post all cash spent in a Cash Account. I'm ready to do my income tax today. Just waiting for 1099's, etc.
But, I am a "rare bird" - I love to do income tax. Accounting is my "all time" favorite chore. Love to crunch numbers.

 

[Alan]

This is a "duh" statement but I'll say it anyway, Jan 1 is a great time to start a program like Quicken, it makes taxes so much easier and you can see where the money goes at the push of a button...love it. I input my figures every time I post in the check register, or as I have stated I keep my credit card reciepts in my wallet and post them every couple of days. It becomes a habit very quickly.

I use quicken for the more detailed financial part of my work, but I use spreadsheets alot. I use them for projected budgets, expense analysis, details on cattle, what my kids owe us and are very slow to repay or work off! etc.

Jeanne you are a rare bird I love to crunch numbers but I always feel crunch after doing taxes. lol

Alan

 

[txag]

another mention about the programs (& both Quicken and MM do this) is that not only can you print out a numbered report but a feature i like is their ability to give you a report of your spending in the form of either a pie chart or graph. really interesting (& sometimes eye-opening) to see where the big pieces of the pie are going!!