What I forgot to mention is that as you enter each transaction, the tax category gets assigned to the item at that time. And, Quicken even memorizes these. So, if you enter Pearl Art Suppy, Quicken remembers the last category you entered for that and automatically puts it in for you. Of course, you're allowed to change the category for that transaction if needed.
I have categories and sub-categories, such as Computer:Hardware, Computer:Software, Computer:Repair.
At the end of the year, I just run the reports for all the categories after verifying all expenses are entered.
Many credit cards have the ability to download into Quicken also, but I never fully got into that. Instead, I handle my business expenses on a credit card like a cash transaction by entering it into 2001 Tax Related account that I set up at the beginning of the year.
I realized a long time ago that to try and split the actual payment I made on a credit card into specific transactions was too mind bending...it just didn't always fit. I also keep a separate credit card for business and try to use that only for business.
Thanks for the compliment Chris. Maybe I should put up my art filing system.
