Quicken financial management software, with all its choices, instructions and options can be overwhelming, especially for a new user. Everything seems equally important, and everything seems like you need to master it right now. Before diving in and starting the process of using accounts, creating reports and filling in budget amounts, it is important to learn a few basic concepts that can help you optimize Quicken for your individual needs. One of the most important concepts to understand is how to use categories and tags to track your account transactions. Use a subcategory to provide greater organization and detail within a category and for assistance in creating a budget. This is especially useful in a category such as Auto, where you incur multiple types of expenses. Creating subcategories for fuel, maintenance and registration makes it much easier to see where your money is going. Tags are like keywords. They allow you to track transactions within and across category groups. For example, if you want to track the money you spend on incidentals for a child in college, create a tag with the name of the child and then apply it to the appropriate category or subcategory, such as Groceries, Auto: Fuel, or Telephone: Cell phone. To add a new category or subcategory, click the “New” button in the Categories List window, create a name for the category or subcategory, provide an optional description, and indicate category type, such as Income, Expense or Subcategory. If you choose “Subcategory,” use the drop-down box next to the selection to indicate the main category name. To create a new tag, choose “Tools” from the main menu, then select “Tag List.” Click the “New” button at the top of the window and type in a name and optional description for the tag. Ignore the “Copy Number” box as it applies to tracking rental properties only. Click “OK” to finish. While it is possible to create categories, subcategories and tags “on the fly,” this is not always a good option, especially if you are frustrated or simply trying to “make it fit.” Putting thought into the categories, subcategories and tags you use can make Quicken work better and more efficiently. At the end of the month, run a report that will show an income/spending breakdown by category, subcategory and tag. For example, to run a standard Quicken spending report, click “Reports” from the main menu. Select “Spending” and then “Spending by Category” to view the report and accompanying pie chart. The Spending report defaults to a year-to-date listing, so adjust date parameters to your needs. Writer Bio
