Learning about accounts
Each Quicken account represents either something you own (an asset), something you owe (a liability), or something owed to you (tracked using Lending Loan accounts). These accounts help you track the money or value added to or subtracted from them. Quicken allows you to manage as many accounts as you need within one file. Some people track only their primary checking account, while others prefer to monitor every detail. You can start with one account and add others over time, or set up all your accounts at once.
The level of detail you track is up to you. However, we recommend tracking all your primary spending accounts to fully utilize Quicken. This includes active checking, savings, and credit card accounts.
Goals and benefits of tracking all your accounts
Tracking all your accounts in Quicken provides a complete picture of your financial health. It allows you to:
Monitor cash flow: Understand where your money is coming from and where it’s going.
Simplify budgeting: Set realistic budgets based on accurate, up-to-date account data.
Plan for the future: Make informed decisions about savings, investments, and debt repayment.
Avoid surprises: Stay on top of bills, loan payments, and upcoming expenses.
Improve tax preparation: Categorize transactions and generate reports for tax purposes.
By tracking all your accounts, you gain control and confidence over your finances, helping you achieve your financial goals.
Accounts that track what you own
Bank accounts (checking, savings, and money market)
Use these to track your checking, savings, and money market accounts. These accounts let you manage daily transactions, automate bill payments, and transfer funds. For convenience, you can also print checks directly from these accounts in Quicken.
Cash accounts
Use these to track your cash on hand, such as petty cash or personal cash reserves. These accounts are ideal for recording small daily expenditures that may not involve bank transactions.
Asset accounts
Use these to track the value of significant assets such as your home, car, or other valuable possessions. For businesses, asset accounts can track capital equipment or accounts receivable, helping to monitor asset depreciation or appreciation over time.
Brokerage accounts (529, brokerage, trust, UGMA)
Use these to track multiple investments within a single account, including stocks, bonds, and mutual funds. Quicken can help you monitor portfolio performance, dividend income, and capital gains.
Retirement accounts (401(k), 403(b), IRA, KEOGH, SEP, SIMPLE)
Use these to track your retirement savings and contributions. Quicken allows you to monitor growth, plan for future withdrawals, and ensure your retirement goals remain on track.
Accounts that track what you owe
Credit card and line of credit accounts
Use these to track credit cards, lines of credit, and equity lines. Quicken helps you stay on top of due dates, manage interest rates, and avoid over-limit fees by keeping an accurate record of your balances and transactions.
Liability accounts
Use these to track debts, such as mortgages, car loans, or personal loans. For businesses, liability accounts can also track accrued liabilities or accounts payable. Quicken can help you monitor payment schedules, remaining balances, and interest expenses.
Accounts that track what you are owed
Lending Loan accounts
Use these to track business or personal debts owed to you. Quicken enables you to manage repayment schedules, track interest income, and ensure timely collection of payments.
Acronym definitions
UGMA: Uniform Gifts to Minors Act. This account allows individuals to transfer assets to a minor without the need for a formal trust. A custodian manages the assets until the minor reaches the age of majority, at which point they gain control.
401(k): Employer-sponsored retirement plan. This plan enables employees to contribute a portion of their salary on a pre-tax basis, reducing taxable income. Employers may offer matching contributions. Funds grow tax-deferred until withdrawal during retirement.
403(b): Retirement plan for certain public employees. Similar to a 401(k), this plan is available to employees of public schools, certain tax-exempt organizations, and ministers. It allows for pre-tax contributions, with potential employer matching, to save for retirement.
IRA: Individual Retirement Account. This account is designed for individuals to save for retirement with tax advantages. Traditional IRAs allow for pre-tax contributions with tax-deferred growth, while Roth IRAs involve post-tax contributions with tax-free growth and withdrawals.
Keogh: Retirement plan for self-employed individuals. Also known as HR10 plans, these are tax-deferred pension plans for self-employed individuals and unincorporated businesses, allowing for higher contribution limits to accelerate retirement savings.
SEP: Simplified Employee Pension. This retirement plan allows employers, including self-employed individuals, to make tax-deductible contributions to individual retirement accounts (SEP-IRAs) set up for themselves and their employees, facilitating retirement savings with minimal administrative burden.
SIMPLE: Savings Incentive Match Plan for Employees. This retirement plan is designed for small businesses and self-employed individuals, allowing both employer and employee contributions. It offers simpler and less costly administration compared to other plans, encouraging retirement savings through salary deferrals and employer matching.