 QuickBooks Online. Sales by customer and income by customer reports. Get ready to start moving on up with QuickBooks Online. We're going to be using the free QuickBooks Online test drives searching in our online search engine for QuickBooks Online test drives selecting the option that has into it.com and the URL into it being the owner of QuickBooks. Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. We're going to be picking the United States version of the software and verify that we're not a robot. Zooming in a bit by holding down control up on the scroll wheel currently at the one to five percent on the zoom and noting in the cog drop down we're currently in the accountant view as opposed to the business you will try to toggle back and forth between the two views so you can see where stuff is located in each of them right click at the tab up top to duplicate it as we do every time right click in the duplicated tab to double duplicate we're going to be putting reports in these tabs as the tab to the right is thinking we're going to have to the left reports on the left we're going to be opening up the balance sheet report as that's thinking tab to the right reports on the left and then income statement profit and loss P&L close the hamburger otherwise known as the hand boogie range to the change from 010122 tap 123122 tap run it to refresh it tab to the middle close the boogie scroll up ranges to changes 010122 tab 123122 tab run it to refresh it that's the setup process that we do every time we're not going to be looking at reports that are breaking out income statement line items remember basically all other reports in essence usually break out some added information about a line item or multiple line items of one of these two financial statements balance sheet income statement otherwise known as the P&L profit and loss we're now focused on that P&L profit and loss looking mainly at the income line item I'm going to collapse it right now the income you'll recall that the major two sections of the income statement are income and expenses income minus expenses giving us that net income income could also be called a revenue category that's the increase in our revenues over a time frame now remember that most of the time when you put income accounts into the system you're not going to be breaking out too many income accounts usually you're gonna have very broad categories about what it is you do possibly breaking out in a most generic type of fashion between your your goods that you sell if you sell inventory and service items you might get a little bit more details you might say you know this is a certain group of items that I sell on the inventory side or certain service types that I do but normally you have very limited income account types because you're specializing in the type of thing you do and then you pay for whatever else you need that's why there's a lot of expense categories as opposed to the income category side of things which you need to be aware of and try not to do most of the time as a general rule is to create a bunch of income accounts that are tied to a customer so you might say hey this is my favorite customer or a big customer of us this is the income from Joe Smith you don't typically want to do that in a full service accounting system because one it'll make your income statements quite long and two you can typically get that added detail in the subsidiary reports breaking out the information by customer per for example so you don't want to put it here on the face of the income statement the other thing people typically do is break out too many categories in terms of what they sell service items inventory items you don't want to have every an income account for every different little item you sell you know because you'll end up with a whole lot of income statement accounts on the profit and loss again and again usually you can get that information from another report now when I say usually we got a point out the exception here so if I hit the drop down you'll recall we're looking at the income side of things now so the income cycle which you can think of as the customer cycle and if you have a very simplified cycle then you might not be using the forms that are the sales type form so let's go to the most complex to the simplest this time if you if you have a cruel system where you have to invoice the clients because you do the work before you get paid then you're gonna have to invoice the client and then receive the payment so the invoice form is the form that creates the sales line on the income statement if you have a cash register like a food truck you get paid at the same point in time you're on a cashed based system but you're still going to use the full service accounting system entering the transaction with the sales receipt and then depositing it into the bank however if you have a very simplified kind of structure where you can basically have gig work maybe you're getting paid by YouTube you're getting paid by Amazon you're getting paid by these other platforms or something like that then you might just wait till it clears the bank possibly using bank feeds which will create a deposit form typically to record your income if you're recording income that way could be a perfectly fine way to do it because it'd be simplifying your system a lot but the deposit form doesn't have the same capacities as the sales receipts and the invoice to create the sub ledger breaking out income by customer and by account therefore if you're using that system it's likely that you might have a bunch of income accounts basically named by the customer who's paying you might call it Amazon income YouTube income AdSense income Google income or whatever and so we'll talk more about that kind of system when we get to the bank feeds course or section at a later point so just keep that kind of caveat in mind if you're using invoices and sales receipts to record your revenue then you probably want to have a limited amount of income accounts so that you can then you could then get the added detail if you need it with the sub ledger reports breaking out income by customer and by item let's look at those now so I'm gonna right click on the tab to the right and duplicate it and we're gonna go on down to the reports on the left hand side and I'm gonna close up the hand boogie scroll down a little bit so we've got the business overview report who's always use here's the sales and customers this is where you would think it would be now there's two reports that look quite similar that we want to just point out they can be a little bit confusing you got the income by customer here you got the income by customer and then you also have these sales by customer summary and sales by customer detail reports you would think these are basically the same thing but in essence there I believe the income report is the one over here that is actually kind of tying out the net income income minus expenses so if you sold cost of goods sold they're gonna apply the cost of goods sold you know to the customer that you purchase from so it's kind of like tying out to gross profit in essence as opposed to the items over here which which is the ones that first come to mind to me which is breaking out the sales the top line by income so let's open up this one first we'll go to the income by customer summary let's open that one up and check it out I'm gonna change the range up top from 010122 tapped well 3122 and run it to refresh it and there we have it we've got our we've got our customers on the left hand side we've got the the income by customer so if we scroll on down that comes out to the 10 280 05 if I go back to my income statement and look at the income side that's not the income statement the income statements over here and the income 10 200 so it's pretty close not exact on it and notice oftentimes you might be a little bit off or it's more likely that there's gonna be a difference between this income report and the sub ledgers over here because QuickBooks doesn't force you to to use the system in such a way that the sub ledger will turn out correct every time like it does with other accounts so for example if I go back to the first tab and I look at this balance sheet account of accounts receivable you'll recall we found it accounts receivable aging report which tied out exactly to this number that will typically be the case because QuickBooks will not allow you typically record something to an accounts receivable account without assigning a customer in such a way that QuickBooks can then make the sub ledger tie out to it and that's quite nice because with this particular account that's very important although it does cause problems as we'll see when we're doing adjusting entries when we don't really want that to be the case the same is not the true not the same or it's not the same if you go over to the income line items meaning if you were to record something to income with it with a journal entry or with a deposit form as you might do if you were recording with the bank feeds then you might not assign a customer in the same fashion that QuickBooks can then add it to the sub ledger so that's why it's more likely that your income account will be off than your sub ledger but if you're recording all of your income with the sales forms invoices and sales receipts and assigning a customer to it it should be tied out it should be correct also note if there is a problem with this one it's not as big an issue as it is if there's an issue on the balance sheet side of things with accounts receivable or accounts payable because these are temporary accounts so at the end of the year they're gonna close out and you'll start over again with a zero at the beginning so if you if you got out of whack somewhere it'll reset itself at least on a yearly basis so you can get back in alignment and move forward from that point in time okay so if I go back on over then it gives us our expenses which are typically going to be the cost of good solds here now sometimes you might have a more complex kind of job cost system where it might be something different than that but now it's got the expenses and then you've got the net income which isn't it's a little deceptive of a term because it doesn't tie out to the bottom line of net income but this is the impact on net income of these transactions or gross profit in essence so that 968341 you would think would tie out to basically gross profit in this case I went to the wrong record again which would be income minus the cost of good sold or in other words that 405 you would think would tie out to this number it's a little off it's a little different because of that some of the issues we just talked about so that's one of the two I kind of sub ledger reports notice how nicely you can you can create bar charts you can imagine and we will do in future presentations to use this data to create like a pie chart of who your best customers are who you sold to the most to and that kind of stuff to kind of spikes up your the visuals on your reporting possibly for a month and reporting and quarter and and year and let's go to the other one I'm scrolling down into the reports again we're on the sales reports this time let's look at the sales by customer let's just look at the detail item sales by customer detail range into the change in from a 1 1 2 2 tab 1231 2 2 tab run at and so now we've got just just the total column here broken out by customer the bottom line of it we would think should tie out to what is on the income statement 10 to 80 and we're close not quite on the profit and loss report so there's that one same same kind of concept you could take this data quite easily export it to excel for example which will probably do in a future presentation and make a pie chart out of it or make a bar chart that can give you some good visuals so let's go back to our reports again and close up the hand boogie and scroll down one more time and did I did I skip it here I'm too zoomed in I can't see right it's too zoomed in so now we'll look at the sales by customer detail now notes you also have this sales sales by a customer type and that would be applicable if you have you know customer types as a category category section you can take a look at that but we're just going to look at this one sales by customer detail sales by customer detail so I'm sorry this one sales by customer type detail I'm going to go to this one sales by customer detail let's pick that one up and change the range again from 0 1 0 1 2 2 tab 1231 2 2 tab run it to refresh it so now you've got the customer information and the actual activity per customer so this is a nice report that gives you the detail but this is one of those reports that you might not use quite as often because you might look for this kind of information over here if you're if you're trying to communicate with a particular customer on this side where you would be going into the sales the sales side of things which would be kind of like the customer center I'm going to close up the hamburger and if you went to the sales transactions then here's where you can sort those transactions and possibly sort by the invoices for example or you can sort by the sales receipts so now we've got the sales receipts that we're sorting by and we can also go to the customer side of things and we could sort by the open invoices and so on so if I'm actually communicating with an invoice about the sales we made to an individual we probably find the individual in here and then look at that the detail that they have within it as opposed to say running a report like this and then looking for you know the detail within the report was my thought process on that but there is this one now next time in future presentations we can also imagine and we'll do again next time I hit the the arrow here or the hand boogie and then scroll back down these sales reports that are going to be by item by the things that we sell so we'll break those out next time so that will be good times next time and let's just hit the hand boogie I mean sorry the the the cog and switch to the business view just to see where stuff is located as we wrap things up and now we know the reports of course are in the business overview business overview and then the reports and then we know that we've been in the get paid and pay area and we've been talking about the the in the get paid area we talked about the invoices and we talked about the customers and then that sales area you got to remember if you're in this business view or talking to people that are in the business view is in the bookkeeping area transactions up top you got the sales stuff up top so you can sort in that area as well