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doug-frazier1
Level 1

I use QB for my home finances. I need to categorize my income and QB asks whether it is a vendor, customer or employee. What is the best way to handle this?

Should I make all expenses and income vendors?
Solved
Best answer April 10, 2021

Best Answers
Pete_Mc
Community Champion

I use QB for my home finances. I need to categorize my income and QB asks whether it is a vendor, customer or employee. What is the best way to handle this?

You may want to look at Quicken for Personal finances. 

 

There are some variables that I don't know, but if you're going to use QBs for personal finances, here are some basics:

 

You have NO Employees.  This would be someone you pay a salary to and need to file tax forms for.

 

Are you still employed?  If so, you could create a Customer for your employer and when you get paid, show the deposit coming from that Company.  You will not easily be able to account for Taxes taken out, etc.  It is possible, but you'd need to get your Tax Accountant involved to set up the accounts the way they want them and you'll have to make the entries every month.  So I'd just show a simple deposit and then give your year end tax forms to the accountant.

 

Vendors are everyone you buy things from.  Home Depot, the corner store, Water, Electric, gas, etc., etc.

 

You'll need to create a Checking Account in QBs and I'm sure a Credit Card Account.  When you make an entry "The Corner Store" then you will also have to associate it with the correct Expense Account.  QBs does not include Accts like Groceries or Household Items, so you'll either want to create them in the Chart of Accounts or pick one of the existing accounts and remember to always use X Expense Acct for X purchase.  And Y Expense Acct for the other Y purchases. 

 

It's all doable, but it's going to take a little tweaking to turn QBs, a business software, into a personal finance program. 

 

Also, you will not be able to track any Investment Accounts in QBs, it is just not designed for that.  You can keep track of the quantity and original purchase price of any individual Stock you purchases or the Month End Cash in Investment Accts, but there is no way to have it download and track Investment Accounts.

 

Everything is basically a Vendor

View solution in original post

2 Comments 2
Pete_Mc
Community Champion

I use QB for my home finances. I need to categorize my income and QB asks whether it is a vendor, customer or employee. What is the best way to handle this?

You may want to look at Quicken for Personal finances. 

 

There are some variables that I don't know, but if you're going to use QBs for personal finances, here are some basics:

 

You have NO Employees.  This would be someone you pay a salary to and need to file tax forms for.

 

Are you still employed?  If so, you could create a Customer for your employer and when you get paid, show the deposit coming from that Company.  You will not easily be able to account for Taxes taken out, etc.  It is possible, but you'd need to get your Tax Accountant involved to set up the accounts the way they want them and you'll have to make the entries every month.  So I'd just show a simple deposit and then give your year end tax forms to the accountant.

 

Vendors are everyone you buy things from.  Home Depot, the corner store, Water, Electric, gas, etc., etc.

 

You'll need to create a Checking Account in QBs and I'm sure a Credit Card Account.  When you make an entry "The Corner Store" then you will also have to associate it with the correct Expense Account.  QBs does not include Accts like Groceries or Household Items, so you'll either want to create them in the Chart of Accounts or pick one of the existing accounts and remember to always use X Expense Acct for X purchase.  And Y Expense Acct for the other Y purchases. 

 

It's all doable, but it's going to take a little tweaking to turn QBs, a business software, into a personal finance program. 

 

Also, you will not be able to track any Investment Accounts in QBs, it is just not designed for that.  You can keep track of the quantity and original purchase price of any individual Stock you purchases or the Month End Cash in Investment Accts, but there is no way to have it download and track Investment Accounts.

 

Everything is basically a Vendor

doug-frazier1
Level 1

I use QB for my home finances. I need to categorize my income and QB asks whether it is a vendor, customer or employee. What is the best way to handle this?

Thanks so much for the detailed reply! It was 100% what I needed.

 

Doug

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