 QuickBooks Online 2024. Generate reports after entering beginning balances. Get ready and some coffee because QuickBooks Online is even quicker to the trigger than QuickDraw McGraw. First a word from our sponsor. Actually we're sponsoring ourselves on this one because apparently the merchandisers they don't want to be seen with us. But that's okay whatever because our merchandise is is better than their stupid stuff anyways. Like our crunchy numbers is my cardio product line. Now I'm not saying that subscribing to this channel crunching numbers with us will make you thin fit and healthy or anything. However it does seem like it worked for her. Just saying. So yeah subscribe hit the bell thing and buy some merchandise so you can make the world a better place by sharing your accounting instruction exercise routine. If you would like a commercial free experience consider subscribing to our website at accounting instruction dot com or accounting instruction dot thinkific dot com. Here we are in our get great guitars 2024 QuickBooks Online sample company file we set up in a prior presentation. So far we've been setting up those foundational items necessary to be able to build our financial statements on top of with the help and use of the normal accounting cycle. Most of those foundational items being found in the drop down cog up top. We looked at the your company section with the accounts and settings set up our users. We looked at the primary lists including the chart of accounts as well as the products and services. We set up our customers our vendors. We set up our payroll and employees. We brought in our beginning balances which we imagined came from our worksheet over here that we're imagining came from our prior accounting system as of the end of December 31st 2023 so that we have our beginning balances on the balance sheet and then the income statement will close out will have nothing on the income statement for the current period that we're going to be working in in the new accounting system for that starting January 1st 2024. Our strategy for entering these balances has simply been that we will enter them one at a time as opposed to entering a full journal entry for all of them at one time so that we can take care of each of the special needs of each of the accounts for example the inventory having a sub ledger breaking out by item by customer by item inventory item accounts receivable having a sub ledger breaking out by customer the accounts payable having a sub ledger breaking out by vendor now that we've entered this into the system we want to review the reports that have been constructed it's really useful when you're starting a new company file to look at the reports step by step as we have done with the balance sheet income statement major financial statement reports those and then try to look at the other related reports because you get to see things built from the ground up so that's what we'll do now let's go back on over and let's go into our reports so when we look at the reports it can be intimidating i'll close up the hand boogie because we have all these different sections of reports and quickbooks puts all these different reports within it so but don't be overwhelmed by that for a couple different reasons one is that the major two financial statement reports are simply the balance sheet and income statement otherwise known as the profit and loss report number one i'm going to unstar this one and number two the most of the other reports also a lot of them are going to be reports that that you can generate from the balance sheet and the income statement and quickbooks has already kind of adjusted them for you so they're kind of duplicate reports as well so let's open our major financial statements right clicking on the balance sheet and i'm going to open the link in a new tab i'm going to right click on the profit and loss otherwise known as the income statement open the link in a new tab we can also open the trial balance right clicking on it open it in a new tab let's go to the tab to the right close up the hamburger change the range i'm going to bring it back to 2023 which because we entered all of our data as of December 31st uh 2023 so let's go from 010123 to 123123 and run that so we talked about the balance sheet basically in general how it has been constructed and we talked about the equity section in particular when we looked at the adjustment of the equity section in a prior presentation this often being the section most confusing uh to people in part because of the terminology around equity changing if you're in a different type of entity partnership versus sole proprietor versus corporation but we looked at that before let's go to the profit and loss bring it back to 2023 010123 tab 123123 tab run it to refresh it we see data in the profit and loss for the prior year but we noted that it's going to close out in b0 in 2024 nothing will be in it thus far that's what we want and then we go to the trial balance this is just the balance sheet on top of the income statement 010123 tab 123123 tab run it so there's our balances here balance sheet accounts assets liabilities equity and then income statement accounts income and expenses this trial now when we do the normal data input then what will happen i will typically have on the left hand side our our place that we can enter the data meaning the forms typically by cycle customer vendor and employee and then the reports on the right hand side which we can either see and the form up mat of a balance sheet and an income statement or sometimes i would generally just have a trial balance open because what i want to do is enter the forms every time i enter the forms then look over here so i can drill back down to see what two accounts at least because at least two accounts will be impacted in any financial transaction that's actually recording something to the financial statements and this report gives me all of those accounts without without all the subtotals that i can drill down on back to the source document which is great so now that we have these major reports open we can think about how other reports will be relating to these reports all the other reports for the most part will be giving more information about one or multiple line items on these major financial statement reports so let's go over and just review some of these reports and see how they might feed into the balance sheet and the income statement so we have the business overview report so we have an audit log that's going to give us a log of who has done what which is a great internal control report notice we have a balance sheet comparison a balance sheet detail a balance sheet summary a balance sheet these are all variants on the balance sheet most of which you can actually create from a standard balance sheet although the summary is a bit distinctive because it's you can kind of create it from the balance sheet but if you create it from the summary it won't have those triangle drop downs so these reports are all in essence the same type of report the balance sheet report you got the profit and loss same thing you got the profit loss as a percent of total income profit loss comparison profit loss detail profit loss per date comparison profit and loss by customer profit loss by month profit and loss by tag most of those are just variants on the profit and loss which we can actually create from a standard profit and loss which would be better to do typically we have a whole course or section on that if you want to look at it in more detail and we will take a look at it in a bit more detail when we get to the month end reports in our practice problem as we think about how we might group reports to provide to we're thinking a client in our practice problem but a similar situation if you're providing them to a supervisor and then you've got the projected profitability summary report so this is a project report sorry project profitability so this would be something that might be using the job cost system if you're using projects we have a whole another course or section on that if you want to dive into that more detail quarterly profit and loss another type of profit loss and then we have the statement of cash flows now the statement of cash flows is another financial statement report a major financial statement report but you construct it after you do the balance sheet and the income statement the basic idea of it being that we want the balance sheet and the income statement to give us our information ideally from accounting standpoint purposes on an accrual basis because that's best for the income statement to be able to compare actual performance which can be skewed on a cashed based system by just adjusting the cash flow so but we would also like to have a statement of cash flows which you could think of as kind of primarily the income statement on a cashed basis because cash is so important so to get the best of both worlds we can have the balance sheet and the income statement on an accrual basis and then the statement of cash flows which can kind of rework in essence mainly the income statement but also some components on the balance sheet on a cash basis so we'll take a look at that later when we get to the end and we have a whole another section or course on reports if you want to look at that in more detail so who owes you these are all reports that you would think would give you more information on the balance sheet account of the accounts receivable for the most part you'll recall that we entered the accounts receivable by just adding the customers which are the people that would owe us if we charged them with an invoice so if we have the the invoices here that's what increases the accounts receivable we would then have to collect on that information so these reports are those reports given more detail so the accounts receivable agent detail is just going to list out who owes us the money and give us some detail about how old or past do they are accounts receivable agent summary same thing collection report similar customer balance detail and the customer balance summary this is a classic sub ledger these are all types of sub ledgers you might call them that are giving us detail about who owes us the money anderson jones smith os 575 and 8 for a total of 20 500 which matches what's on the balance sheet here 20 500 back to the first tab so we have the invoice and receive payments that's kind of the activity reports invoices increase in accounts receivable as we saw when we made the customer's payments would be the things that decrease it that's the thing that's going to match out to the invoice when we get paid open invoices mean we invoiced something someone and have not yet gotten paid that means it's going to be an outstanding balance tied to accounts receivable statement lists these are lists of statements that we can create to try to collect on the receivables term terms lists of the terms like net 30 and so on paid unbilled charges these are internal reports same with unbilled time to try to track the time that we have entered that we need to invoice to charge the client for then you've got the sales and customers all of these you would think would primarily be given you more information about the income statement line items of income or revenue because these are going to be sales is typically another term for revenue or income so you got the customer contact list that's just a contact list of customers and their contact information deposit detail it's a little confusing because it's not it's a balance sheet report but you're thinking that the the deposits are coming from the customers which is why they might put it in the kind of sales area so estimates and progress invoicing estimates are going to be a form that doesn't record something on the balance sheet it's an internal document but it helps you to give like an estimate of how much you would charge someone before you do the work progress invoicing is a special area we have another course or section on if you want to look at that in more detail for longer projects estimates by customer again estimates income by customer summary so now we have our income line that's going to be on the income statement over here sales instead of having notice we're generally going to start off with only two income lines service income and product income we're not going to list out all the different services or all the different products on the income statement because we could give sub reports breaking out by product by service in detail and we can have a sub account breaking out by customer so this will give us our income our revenue by customer inventory valuation so they put these under the sales area because it's kind of part of cost to good solar we're selling to customers although inventory is a balance sheet account so they kind of stuff that one in here kind of it's a weird somewhat a weird of a location but that's giving us more detail on the balance sheet account of inventory which we would only have if we're doing a perpetual inventory system which we did here and that means when we set up the inventory note what it did we just listed the inventory units we had and they use the inventory starting value form to record the information so that we have sub ledgers now which will tie out to that inventory so if I open up an inventory valuation summary for example it's going to give us the backup detail because we're on a perpetual inventory system given us the inventory items the units we have and then the values adding up to two thousand eight ninety six which should match what's on the balance sheet inventory two thousand eight ninety six back to the first tab payment method list this would be the methods of payments that would be on some of the forms that we could have like cash or check credit card physical inventory worksheet that's just something that'll help us to count the inventory because it'll give us the categories of inventory product service list so this is going to be the products that we have given us a list sales by customer detail sales by customer summary this is very similar to the income by by by customer summary that we had over here somewhere but it's the income I think is also going to give you the cost of goods sold if there was cost of goods sold whereas the sales will will just give you the sales line items and then we got sales by by customer type if you have different customer types that you're grouping your customers into and then we got sales by product service now we're looking at the income line of income or revenue not breaking out the sales that we made the revenue that we earned by customer but rather by what we sold that's going to be the inventory or products and service or services time activity by by a customer transaction list by customer so we can list out the trans that transaction list by tags tags as a specialty kind of thing like class tracking and location tracking and we have a whole another scores or section on that if you want to look at that then we got what you owe you've got these 1099 reports in here what what you owe by the way this whole section before I get into it you would think would be supporting the balance sheet account of accounts payable because if I go into the accounts payable you will recall that we set that up by just setting up a vendor and saying that we owe the vendor 15000 then the system QuickBooks created a bill because a bill is the form that increases accounts payable so if I go back then all these reports you would think would tie into accounts payable now the 1099s are kind of an exception because that's a tax rule in the United States that we have to track for certain contractors we'll talk more about that in the future we set up the pay the sales tax before so you can look at that in more detail if you so choose as well notice these are kind of vestiges as well of the old sales tax set up because everything kind of is done now in the new widget format and we have we've looked at that in a section already we'll touch on that again possibly as we go through our practice problem but the accounts payable aging breaks out who we owe the money to by vendor as well as by how old or outstanding it is accounts payable aging summary the bill payment list so bills are the things that increase the accounts payable so that's going to be in the payments are the things that we pay off the bills to connecting the bills to a payment which would be like a check or an expense form bills and applied payments so the bills increase the applied payments decrease so this will give us the detail about the accounts payable broken out by the increases and decreases rather than just by date then the unpaid bills unpaid bills should add up to the accounts payable balance you would think because they're bills that have not yet been paid vendor balance detail this is the classic sub sub ledger so let's right click and open that one which is basically just giving us a list which is going to be quite short for this one because we only have one vendor that's outstanding but if we had a lot of vendors outstanding the point is the summary of all the outstanding bits of the vendor would add up to the accounts payable here so we have more detail not just by date which is what is in here in the transaction detail if I drill down but by who we owe the money to back to the first tab then we've got the expenses and vendors you would think this would give us more detail about the income statement expense line line items so if we go back on over and check them out 1099 again that's kind of a vestige of the old system because the new system is kind of in the widget you got the check detail this is a balance sheet thing because it's going to show you checks which decrease the checking account but you might be paying your bills with the bank feeds mainly with check forms that's why I think they might put it down here in the expenses area expenses by vendor summary so now we're looking at the income statement similar to what we did on the income line with the expense line I can break out the expense line notice what we broke them out as here how did I create this expense well if I go into it what did we do we we entered the vendor we entered a vendor and we said we owe the vendor 15 000 and then QuickBooks made a bill and it dumped the other side into an expense because usually when you enter a bill you don't use the other side goes to an expense now it just made up a category of miscellaneous expense but with the expenses we usually do not categorize them by vendor notice it didn't make an epiphone expense which was the vendor that we bought the guitars from instead it said miscellaneous that's what we do we make a category so just like with the income we didn't break it out by customer or get too detailed on what we sell we just have general categories similarly down here although you're going to have a lot more expenses we don't call it epiphone expense we call it if it whatever we paid for if it was a utility bill we call it utilities expense electric expense telephone expense then that we have to break we could make a sub ledger breaking it out by who we paid which means the vendor so now I can have expenses by vendor giving us more detail about it by who we paid and then we've got open purchase order list purchase orders would only be there if you have inventory we'll talk more about them in the future and even then you might not always have the purchase order but we'll get into them in more detail another purchase order report purchases and product detail so purchases are different than expenses in that if you make purchases you're generally thinking of inventory items that we're purchasing as opposed to paying vendors for expenses like the telephone company and then we've got the transaction list by vendor and the vendor contact list just giving us contact information we have the sales tax sales tax liability taxable sales detail and taxable sales summary these might be somewhat obsolete well they still could be good reports but there's a whole other sales tax widget that you might use to help you process the sales tax if you're processing the sales tax within the quick book system we'll talk a little bit more about that in our practice problem and then we have the employee reports so this will give us more information about the accounts related to employees we didn't put any employee accounts on here yet because they were the beginning balances although in practice you might have some liability reports as you start that would be payroll liabilities but nothing would be on the profit and loss for the current period because we wanted to start the payroll as of the first day of the new year January 1st 2023 but the payroll accounts that you would expect to have is on the income statement payroll expense and payroll taxes generally at a minimum and then on the balance sheet you can have payroll liability accounts for the withholdings that you're going to have to pay out that are going to include the federal income tax social security medicare on the employee and employer side as well as any benefits that you're taking 401k plan and so on so recent so we'll talk more about them as we go a little bit more for my accountant so these are the reports that are for the accountant meaning they're going to have debits and credits in them or their duplicates that are already listed up top in the financial reports so we have or their long listed reports long detailed reports so we got the account list just a list of accounts in essence you've got the balance sheet this is a repeat we already saw that so i don't like that they put that here because we already saw it up top their housing at twice a balance sheet we already saw that up top in the general reports you've got the general ledger this report used to be something i'm going to open it up that we used all the time because when we had paper filing we had to we had to then get the general ledger report 0 1 0 1 2 3 to 12 3 1 2 that gives us all the detail so i can look at the transactions these days it's not as important because you can most likely give access to your file for tax preparation at the end of the year to your accountant so this this is a similar i'm just going to close some of these this is similar to like if you went to your balance sheet and then just drill down on the detail it's giving you the detail by date of the transactions so then if i go into the journal similar kind of thing it's going to give us the detail but it's not going to be by account it'll be by transaction this is actually a really good report for learning and it's in a new format i'll custom date go from 0 1 0 1 2 3 12 3 1 2 3 and we could see what we did here so we entered these transactions in when we entered our beginning balances and you can and this is really a good report if you wanted to look at it and figure out what you're doing from a debit and credit standpoint so we entered for example our opening balances and you and and you can say okay what did it do when i entered this invoice what did that do well that it did that when i tried to enter my accounts receivable and we made customers so what did it do for each customer it added an invoice and each invoice had a transaction of a debit and a credit does it show that account numbers the account number is not here but you can then drill down into the account account numbers the actual accounts which was an increase to the accounts receivable on the other side they put into an income account right and then it did the same thing for the second customer jones another journal entry debit and credit and then we then what did this bill come from well the bill happened when we tried to create the liability of accounts payable we told it to give them a vendor and then it just made a bill for it and what did it do with that bill it the bill then that form created a credit to the accounts payable and the debit went into an expense account that they dumped into the income statement over here and so okay so then the deposit form what did it do there what that happened when we made the checking account and we made a deposit into the checking account and they dumped the other side into opening balance equity which we then rolled into owner's equity so that's the deposit journal entry the 75000 where did that come from that was the journal entry to put on our asset of the fixed asset 75000 it dumped the other side into opening balance equity so debit here and then what about this the 7500 well that's the accumulated depreciation we had to credit this one the other side went into opening balance equity credit card well what happened there well we credited the credit card to put it on the books and then it dumped the other side I think in the opening balance equity and then and then this one is our adjustment of opening balance equity I believe to close it out so that we now have zero in the opening balance equity and then and then this one was us moving the information out of I think this one was the one taken it out of opening balance equity and putting it into putting it into retained earnings so I get confused between these two I'm not going to get into it in detail but you get the idea and then what are these these are the inventory ones so remember when we did inventory how did we put that on the books we just went into inventory we told it that we have these inventory items at a cost and a sales price it used this form inventory starting form to put it on there for each category of inventory so I'm going to have one two three four five six journal entries and you can see the debits and credits are going to increase with the debit the inventory and then they dump the other side somewhere I think to opening balance equity and so they did that here you're at the same thing inventory inventory inventory so as we go this is actually a good report to kind of review what has happened also if we start if we started at the same point in time meaning on the balance sheet we had nothing before this section and then we were to match out our journal reports if your journal report ties out exactly to this journal report which is a little difficult to see because we don't have it's not showing the accounts which is kind of annoying but if your journal report tied out exactly to this journal report then then your ending balance has to work now if I have something on my side that you don't have on your side it's likely it's a date issue so it's likely that you accidentally entered something as of a different date because QuickBooks usually defaults to the current date so try changing the date up to like 2024 and then see if it appears to see if see if you have any transactions that are above my current date and then you can drill down on that transaction and change it back to 2023 if you so choose okay let's go back to the first tab profit loss we already saw that up top that's a duplicate report all of these are duplicates I don't think they should have them down here because we already see them in the up top recent transactions gives you recent transactions that could be nice kind of like that audit trail report to see what has happened recently reconciliation reports are like bank and credit card reconciliation reports we'll talk more about that in the future section or course recurring transaction list if you have transactions that you've put in that are going to be reoccurring the statement of cash flows we already saw it up top it's a major financial statement report it's duplicated down here transaction detailed by account this is similar to the general ledger giving us the information for all the transactions by account that would be a very long report and then we've got the transaction list by date this is another one that we're going to take a look at I'm going to open it up at the end of each section basically so if I go into this one close up the hand boogie and we say range change just do a custom 010123123123 so now this is similar to the journal report but this time it's more compact rather than giving us all the detail it's just giving it by line item so this this will be a problem for some transactions which have more than two accounts impacted but if there are only two accounts affected this reports very nice to look at and it also eliminates the the debits and credits so you can think of it as just increases and decreases if you don't want to think of it in terms of debits and credits but the debits and credits are actually quite useful but in any case like here so here's the invoice again so we have these invoices here's our three invoices that we put in place to put on the accounts receivable you can see the name here and you can see the account is accounts receivable and then what did I do now I sorted it over here you could change the sorting I did that on purpose so you could show that location I can get rid of that let's make this smaller and so then you can see if there's only two accounts affected you could so here's the accounts receivable the other side went to revenue right and then here's the bill that's the one that went to that's the one that we did for the accounts payable here's the accounts payable the other side went to the income statement miscellaneous expense here's the deposit to increase the checking account went to the checking account the other side went to opening balance equity here's a journal entry so it didn't give us the detail on this one because for some even though there's only two accounts impacted I think it still is giving us these dashes that's why that's what this report doesn't do great you can drill down on it and see that transaction but like I say it's that's the limitation of this report let's drill down on it uh so there's a credit card okay any case this one's the I clicked on the credit this one's the credit card so you could see it went the other side went to opening balance equity and then the inventory all the inventory ones opening balance and then the other one went to inventory assets those are the two sides so again we will look at this report basically at the end of each section if you have the same beginning balances such as for example the trial balance numbers at the start of the section we're ending a section now so if these numbers are correct as of now then at the end of the next section which will be a long section because we'll do a whole month of data input we will run this report again if your numbers tie out to these numbers and you have the same reports then generally it has to be the case if it was exactly the same that your ending balances would tie out to our balances in other words the ending numbers when I run this as of the end of the first month of operations which will be at the end of January 2023 then it'll tie out exactly so that's gonna that's gonna be how we will use it you also might use this report for like billing purposes for example because you could try to charge people by the number of transactions that you had one way to do that easily would be to export this report to excel use excel to count the lines however you can also do that with the journal reports you might export the journal reports because some transactions might have more detail in it so you might look at the number of accounts that were impacted and make your billing rates based on that so that's another way that you might use this this these two reports are also great for grading in a school setting because you can see what people have actually done see if they actually did the work or they kind of cheated they put a journal entry in or if you're a supervisor same thing how much did they actually do you can see the detail of what was actually done with these with these reports so like I say if we started at zero so there was no trial balance before if your numbers match this number these numbers in our transactions then your ending balance has to tie out right to this would be the the theory of it and if they don't if it doesn't tie out then if there's a difference in the dollar amount then you can drill down to the source document because QuickBooks is quite flexible with that kind of thing and possibly change it and if there's something on our side that isn't on your side change the date to up to a later date because it's likely it's a date issue that's the most common thing and then drill down onto the document and change the date if there's something on your side that is not on our side then possibly you can delete that transaction because once again QuickBooks is quite flexible most of the data input that has been put in place you can drill down to the form and delete it or if not just zero out the data that's within it so that's how we're going to go going forward