How to Create an Income Transaction

Quick Review

• What: Record income (positive) transactions in Quicken Simplifi

• Why: Track money coming into your accounts

• How: Use income categories or add a plus sign (+) before the amount

• Visual: Income shows in green with a (+) prefix; expenses show in black

Overview

When creating transactions in Quicken Simplifi, it's important to understand how the system differentiates between income and expenses. Income transactions appear in green with a plus sign (+) in front of the amount, while expense transactions display in black.

Ashley learned this distinction quickly when recording their first consulting payment. They initially entered it without a category and forgot the plus sign, causing Simplifi to treat their $3,500 payment as an expense. The negative balance alert that followed taught them the importance of properly marking income transactions.

Two Ways to Create Income Transactions

Method 1: Use Income Categories (Recommended)

When you assign an Income category to a transaction, Simplifi automatically treats it as a positive amount. This is the most reliable method.

Common income categories include:

• Paycheck

• Business Income

• Investment Income

• Gifts Received

• Tax Refund

Method 2: Add a Plus Sign

If you choose not to categorize the transaction, enter a plus sign (+) before the amount to record it as income.

For example:

• Income: +500

• Expense: 500 (no plus sign needed)

Visual Indicators

Quicken Simplifi makes it easy to distinguish transaction types at a glance:

• Income Transactions:

  • Display in green

  • Show a plus sign (+) prefix

  • Increase account balance

• Expense Transactions:

  • Display in black

  • No prefix symbol

  • Decrease account balance

Ashley's Income Recording Tips

As a consultant with irregular income, Ashley has developed a system:

1. Always use categories: Assigns "Business Income" to all client payments for easy tax reporting

2. Double-check the color: Green means income was recorded correctly

3. Watch the balance: Income should increase the account balance

Ashley once entered a client payment without a category or plus sign, causing their account to show a massive negative balance. Now they always verify the transaction appears green before saving.

Common Mistakes to Avoid

• Forgetting the plus sign when not using categories

• Using expense categories for income (like categorizing a refund as "Shopping")

• Not verifying the color after entry

The Bottom Line

Creating income transactions in Quicken Simplifi is straightforward once you understand the system. Use income categories whenever possible for accuracy, or remember to add a plus sign (+) before uncategorized amounts. The visual cues (green color and + prefix) provide instant confirmation that your income is recorded correctly.

Hint: Create custom income categories for different revenue streams if the defaults don't fit your needs. Ashley created separate categories for "Consulting Income," "Workshop Income," and "Passive Income" to track earning sources. This granular categorization makes tax preparation and income analysis much easier than using a generic "Business Income" category for everything.