Quicken vs. Money

Quicken has the edge by a nose

In every review that states a clear preference, Quicken's 2008 applications are chosen as the top personal accounting software packages. Quicken 2009 -- while it may not be enough of an improvement to justify upgrading from the 2008 version -- offers the same features as well as some additional ones. CNet.com reviewer Jeff Bertolucci says that Quicken is a "well-built money manager easy enough for novices yet powerful enough for veteran number crunchers." About.com's Shelley Elmblad offers a feature-by-feature comparison of Quicken 2009 and Microsoft Money Plus and gives the nod to Quicken as well, saying that Quicken is "easier to use for most people." This review is worth consulting if you're trying to decide between the two -- it will allow you to decide based on which features are most important to you.

For 2008, Quicken added new features like My Savings Plan -- which lets you chart your budget allocations so that you can hit savings targets -- and a bill alert for your desktop, although that works only with Windows Vista. Quicken now provides access to more than 5,300 financial institutions, including PayPal. A backup function gives you the option of using removable media or the Quicken online backup service; pricing for the latter varies depending on the amount of data you need to store. Customer support is available free via chat (available 24/7) or e-mail, to which Intuit promises to respond within a day. Phone support costs $25 per call, but some calls are free, such as those involving installation problems or issues importing data from an earlier version of Quicken.

The 2009 versions of Quicken look much the same as the 2008 ones, adding "some nice tweaks for getting around...; quicker and easier than in earlier versions," according to About.com's Shelley Elmblad. These include a setup tab that incorporates all setup functions in one location and links to online videos on how to use different Quicken features, as well as new tabbed navigation on the right side of the screen. One of the tabs is the new Guide Me function that Elmblad describes as the most useful addition to the new 2009 versions; it provides instructions on the part of Quicken currently being used and directs the user to different types of help that are either embedded in the software or available online.

Quicken 2009, like Quicken 2008, comes in four PC versions, starting with Quicken Starter (*Est. $30), which has basic but solid tools for tracking accounts, bills, debt and investments; documenting tax deductions; and paying bills online. Quicken Deluxe (*Est. $50) adds the ability to download and track your 401(k), IRA and investment account information, along with more advanced portfolio management, savings and tax-planning tools. For most users, Quicken Premier (*Est. $75) has more than they'll ever need, with great home page displays of cash flow and other financials, document scanning, the ability to attach documents electronically to transactions, superior management and planning tools, stronger reports and excellent portfolio tracking. It also offers the ability to find tax-efficient investments and deductions using Schedule A, B and D tax reports. Quicken Home & Business (*Est. $90) can do all of the above, as well as prepare customizable invoices and track and maximize Schedule C deductions. It can also monitor accounts receivable, accounts payable and upcoming bills.

However, those with more ambitious goals for their financial software should keep in mind that both Quicken and Money Plus are designed for individuals. For small businesses, accounting experts recommend entry-level professional accounting packages like Quickbooks (*Est. $100 to $300, depending on version) and Peachtree Premium Accounting (*Est. $300), which are beyond the scope of these reports.

Note that Intuit has not released a Quicken Mac update since 2007, so Quicken Mac 2007 (*Est. $60) remains the current version. However, Intuit says that it will issue an updated version, to be called Quicken Financial Life for Mac, in the summer of 2009.

Like Quicken, Microsoft Money offers several versions. Money Essentials (*est. $20) includes basic features to balance your checkbook, pay bills online, track your spending, create charts and graphs, and export data to tax preparation software. While this is sufficient for users looking to upgrade from the back of their checkbook ledgers, reviewers say that Quicken Starter beats Money Essentials hands down. The Money Plus Deluxe edition (*Est. $55) is the better way to go, as it includes investment and financial planning tools, a savings and spending budget, an enhanced tax estimator, a spending tracker for budget groups and new tools for creating snapshots of bills, cash flow and spending. Money Plus Premium (*Est. $80) has all of the above with the addition of investment strategy planning, retirement planning, capital gains tracking and schedules. Finally, Money Home & Business (*Est. $90) has the ability to create invoices, manage accounts receivable and payable, track customer information and handle payroll online. There is no Mac-compatible version of Microsoft Money.

Experts like the Money Plus Insights tool, which creates visual reports from data in Money and displays them on the Windows task bar without having to open Money Plus to view them. Users can create reports for cash flow, spending and bills. Other benefits that experts like include one-step account updates, spending alerts, free phone support and the ability to attach images of checks to account transactions. According to About.com's Shelley Elmblad, Quicken's attachments are easier to use, but many more file types can be attached to Money Plus transactions. Portfolio-management tools and Money's long-term planner also get high praise, and unlike Quicken, Microsoft Money Plus offers a 60-day free trial of its software. Customer support is offered via e-mail, chat and a toll-free phone number.

However, Money requires a Windows Live ID, an e-mail address and a password combination that allows you to log on to the service and access your other online financial services (you specify which ones) without logging on to each of them separately. Some experts fear that using a Windows Live ID could make data less secure, because this is used for many Microsoft services, though others say that the powerful encryption used by Windows Live ID is secure. Quicken does not have a similar feature; users must sign in to other financial websites individually while using the software, and login information is stored locally rather than on a server.

The majority of the problems with both Quicken and Microsoft Money Plus occur when current users upgrade their software to the latest version. Most of the reviews we found on Amazon.com are from users who were happier with prior versions, and some say they are switching back until the bugs are worked out or until their older program stops being supported by the companies (another major complaint). Some Quicken 2009 users report buggy downloads or encounter difficulty in transferring data from a previous version of Quicken, among other glitches. Some also cite poor customer service. Microsoft Money Plus users complain that they have to upgrade every two years or face being booted off the online services, and they also feel that there are still bugs in the software. Users of both services object to having to view ads when using the software.

Despite giving Quicken the nod, experts and users alike confirm that the two programs are quite similar. Both offer demos on their websites; in addition, Money Plus offers a 60-day free trial and Quicken a 60-day money-back guarantee. If you're undecided, try both and see which one is the best fit for you.