Making it easier to track that elusive bottom line, the latest version of Intuit's legendary personal-finance package offers better investment-tracking capabilities and easier setup while maintaining past strengths. As usual, the annual upgrade isn't a slam-dunk decision for those who already rely on Quicken -- in any given year, new features tend to appeal to some users but be skippable by others. Still, this is the most powerful Quicken yet.
Quicken 2004 comes in Deluxe, Premier, and Premier Home & Business versions priced at $60, $80, and $90, respectively. The first focuses on balancing your checkbook, paying bills, planning for big investments like college or retirement, and monitoring your net worth and asset allocation; the second adds tools for tracking and analyzing an investment portfolio and generating Schedule A, B, and D tax reports.
The flagship Quicken 2004 Premier Home & Business offers useful tools to handle invoicing, job tracking, accounts payable and receivable, and more. For home offices or other microbusinesses that aren't ready for Intuit's QuickBooks or Peachtree Accounting, Home & Business is definitely worth a look.
Some Things New
In the past, newcomers who wanted to use Quicken had to not only learn the program, but enter a lot of information from their bank statements, dividend reports, buy/sell sheets, and so on. Intuit's impressive new Express Setup lets users with online access to their bank accounts enter their bank, ID, and account information, then let Quicken download and input the financial data. It's a true timesaver in an area where Quicken has clearly taken a lead over archrival Microsoft Money.
Express Setup also assists investors by downloading the latest quotes, news, and alerts that pertain to their portfolios. Quicken works with some 2,000 banks and other financial institutions, so there's a good chance that your bank and broker will let you take advantage of the program's online abilities.
Managing investments has always been a Quicken strength, and the 2004 edition is even stronger. Sophisticated investors can now compare their average annual return against key market benchmarks, and verify that their asset allocations are appropriately diversified and match their financial targets. The program also keeps investors informed of Morningstar Rating changes and hidden fees, and can estimate after-tax performance.
Quicken's investment screens have been redesigned. The account area now resembles a brokerage statement, while a new tab in the Financial Overview Center tracks net worth, broken down by asset areas. A useful new Investing Activity Year-To-Date Snapshot lists contributions and withdrawals to show whether balance increases are due to contributions or to changes in market value.
Standing on Past Strengths
As it has for years, Quicken continues to do a great job of creating and tracking budgets, managing and balancing checkbooks, monitoring investments, and developing financial plans. Its interface remains intuitive and easy to use: The program separates tasks into centers -- for example, Cash Flow and Property & Debt -- that provide related options for performing analysis, obtaining reports, viewing accounts, and carrying out transactions. You can customize reports for each section.
All of the menus, tabbed windows, links, and alerts can be a bit intimidating for novices. But after a while, most users will appreciate the sheer quantity of information that Quicken provides on a single screen, combining at-a-glance summaries with immediate links to additional details.
Quicken provides strong tools to plan for retirement or large purchases and offers options for revising and comparing plans. Step-by-step 401(k) tracking downloads information from 401(k) providers and offers analysis and summaries. A Capital Gains Estimator compares the potential tax impact of gains and losses before you make a trade.
Minding the Business
Small businesses can rely on Quicken 2004 Premier Home & Business to track accounts receivable and payable. The program provides a single, convenient place to view unpaid invoice and upcoming bills, and offers 13 customizable reports that show sales, profits, expenses, and more over any time period. Online bill-paying makes it easy and convenient to schedule payments in advance so they go out when they're supposed to.
You can create customized invoices and estimates that feature your company's logo; invoices can be printed and mailed or forwarded as attached HTML files. The program also tracks multiple jobs and projects -- a very useful feature.
Quicken tracks mileage and business expenses and prints a Schedule C report for forwarding to your tax preparer. You still have to be diligent about recording mileage and expenses, but being able to track this information in Quicken is an added convenience.
Generally, Premier Home & Business is best suited for small service or low-volume retail firms. It can act as a bridge as you gradually separate your business from your personal finances, though eventually a growing concern will require the stronger accounting and inventory features found in full-fledged accounting packages such as QuickBooks.
Clash of the Titans
As reported in our review, the latest Microsoft Money includes impressive free services, such as two years of online bill paying via MSN; tax filing through H&R Block; a credit report and year of credit monitoring through Experian; and consultation with an American Express financial planner.
Like its Intuit counterpart, Money 2004 Small Business comes with features for managing and tracking inventory and managing payroll. Money can adequately manage and update inventory as you make purchases and sales, handle shipping terms, and create estimates and convert them into invoices. The payroll features perform the necessary calculations, remind you of tax deadlines, print paychecks, and fill out tax forms -- and you get a free year of payroll service.
If you run a retail or manufacturing business, the limited inventory features found in Microsoft Money may be a plus. And if you have to deal with payroll, Money is definitely worth considering. For other users, however -- especially those looking to begin managing their finances on the PC -- it's hard to top Quicken 2004.
