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Accounts or Categories?
What's the difference between categories and accounts? Categories are not really covered in the help file. So should I set up Income Accounts or Income Categories? Do you set up an Income account (Sales for instance) with Income categories too? Also when you set up a new set of books--you are only given two basic accounts (a checking and a saving account) with lots of categories. What is the best way to set up the books.
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Inappropriate?A little bookkeeping knowledge helps for this.
Accounts in MD are balance sheet accounts.
Categories in MD are income and expense accounts.
(Same names used in Quicken for many years).
Accounts: go to Tools/Edit Accounts, then click "new" at the bottom of the page to open a new account. You will see that the options given for kinds of account are: Bank, Credit Card, Investment, Asset, Liability, Loan.
Categories: go to Tools/Edit Categories, then click "new" at the bottom of the page to open a new category. The options are: Income, or Expense.
Accounts balances will show in your Balance Sheet: in MD in Account Balances report, or Net Worth report.
Categories totals will show in your Income and Expenses report.
Therefore you have income categories, not income accounts.
