Does Quicken 2012 Work for a Corporation? - dummies

Does Quicken 2012 Work for a Corporation?

By Stephen L. Nelson

Sure. But here’s what’s unique — at least from an accountant’s perspective — about a corporation. In addition to recording assets (such as bank accounts and receivables) and liabilities (such as mortgages and trade payables), a corporation often needs to track, or keep records for, stockholder equity.

Stockholder equity includes the amount people originally paid for their stock, any earnings the corporation has retained, cumulative income for the current year, and sometimes other stuff, too.

“Ugh,” you’re probably saying to yourself. “Ugh” is right. Accounting for stockholder equity of a corporation is mighty complicated at times. It’s so complicated, in fact, that Quicken can’t track a corporation’s stockholder equity.

Just remember that someone — probably your poor accountant — periodically needs to calculate your stockholders’ equity.

Fortunately, the financial information you collect with Quicken provides, in rough form, much of the information that your poor accountant needs in order to do things manually.

If your corporation enjoys revenue of $250,000 per year or more or owns assets that total $250,000 or more, you must include a balance sheet with your corporate tax return. (It’s actually the law.)

Quicken isn’t very good about creating business balance sheets — or at least the sort of balance sheet that needs to get included with your tax return. Accordingly, if your corporation grows so that its revenues or assets equal or exceed $250,000, consider retiring Quicken and upgrading to QuickBooks.