 QuickBooks Online 2023, budgeted income statement reports. Get ready to start moving on up with QuickBooks Online 2023. Here we are in our Get Great Guitars practice file. We started up in a prior presentation using the 30-day free trial. We also have open the free QuickBooks Online sample company. You can open the two at the same time by using 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. Incognito or another browser. If you want to open Incognito, if you're using Google Chrome, select the three dots, open Incognito, type into the search engine, QuickBooks Online, test drive. We're going to be looking at the accounting view, the view that Get Great Guitars is in, and the business view, the view the sample company is in to toggle between the two views. You can go to the cog up top and change the view down below. Duplicating some tabs to put reports in like we do every time. Right click on the tab up top to do so and duplicate. Right click in the duplicated tab and duplicate. Back to the tab in the middle as the tab to the right is thinking reports on the left. We want the balance sheet, one of the major financial statements as we well know. Note that if you're in the business view, by the way over here in the sample company, the reports are located in the business overview and then the reports back to the accounting view tab and to the right reports on the left, opening the other major financial, that being the profit and loss, the PNL, the income statement, closing the hand boogie, changing that range in from 010123 to 022823, hitting the drop down to see a month by month of side by side and running it to refresh it. There's Jan, there's Feb, there's the total here to date Jan Feb, tab to the middle and close up the boogie, scrolling up top and going from 010123 to 022823 and hitting the drop down for the month by month of side by side, running it to refresh it. I was running and there it is. That's the setup process that we do every time. We've been working on the budgeting and putting the data input for the budget, quick recap on the budget. Remember that the budget is not something that we typically think of as part of the accounting process because the accounting process is past data that we're putting into the system to create the financial statements and work with the people we're doing business with customers, vendors and employees, typically the data input being from these forms. The budget is future data. We need projections out into the future. So clearly we need accounting knowledge to do that because it's still going to be in the format of financial statements, but we also have to take in other information management information, market information and so on so that we can make appropriate estimations about what's going to be different from the past to the future due to more advertising, due to hiring more or less people, due to putting more money into property, plants and equipment or something like that. So the strategy that we would use is to take our income statement possibly and export it in some way, shape or form to excel so that we can have that as the starting point from the past data and then use that to make a budget taking into consideration all these other factors. Once we have that created, then I would import it back into QuickBooks so that we can run QuickBooks reports such as the budget versus actual reports. That's what the QuickBooks system does well. So that's what we did in prior presentation. If I go to the first tab, we entered the budget which you could find in the cog dropdown. We went to the budget over here, budgeting and we entered this budget. You can have multiple budgets. If we edit the budget, we can see our information here. So this is what we put into the system and we were a little bit off down below in terms of the budget that we had in Excel. So now we're going to make some check our numbers and make an adjustment. So in Excel, we had the end result. This is probably the first number to check 125, 965 because that will encompass. If that one's correct, you're pretty solid that everything's correct. It was off over here if I scroll down a bit so I could see it. And so you could go through your budget here and find it but notice it's a little difficult to do that because you don't have all the subcategories or at least and you have all these other accounts that are kind of muddying up the system. So I would actually just generate a budget now and then find the difference and then I'm going to come back in here and make the change. So I'm going to go to the tab to the right, right click on it, duplicate. Now that we have a budget in place, we can just find our budget right where we find all the other reports that's in the reports on the left hand side. And then we're going to type in budget. I just type in budget. That's how I typically do it. And you've got your budget overview and your budget versus actual. Those are the main two budget reports. Let's first take a look at the budget overview, which I don't think is quite as useful in practice because it's just going to give you a recap of what we already had in Excel, but it'll be a good checking format for us. I think what QuickBooks does quite well of course is the budget versus actual report. Although this report's nice too because you can run it with different date ranges and whatnot up top. So that's nice. But in the case before we get into that, let's go down here and say, okay, what is off in our budget? So I know that this end result is off. So I could say, okay, that number's off. I could check each of the totals by month now. And I could say, okay, well, I got 1037-3265. So if I go back over here, 1038, it's a dollar. That's fine. That's off. This one's off. So it starts to get out of whack right in February. And then I could check line by line up top. If I could go, okay, then I can add up, say my income accounts up top and they should add up to 34606. And then I could go back on over here and say, okay, 34606. And I could check basically line by line 22, 22 there. And then my business expenses, if I add them up, go down to right there, I think, because these are the other expenses, 10,182. So if I go down, you know, you can add them up thusly. Actually, I messed that one up. But in any case, that's the strategy I would take. But I could see where the problem is. If I go through down here, because I could see, okay, this one down here, I increased the interest in this category, or I decreased it over time. So it was at the 334, the 318. And here I had 334, and I kept it constant. So I believe that's going to be my difference. So I'm just going to go back and change this one line item. Once I discover that, going to go back to the first tab, scroll all the way down to the bottom. And let's say we want to change down here. There it is. This is the line I want. So it's going to be another one of those items where I got to do it line by line, because I can't really copy it across. So I'll enter that here. And then we'll see the change. Okay, so there we've entered the change. I'm going to click off of it. So these are the new numbers I put into place. Let's go ahead and save it. I'm going to go back to my report now. I'm going to run it again and see if it refreshes down here, as we would expect it to do. It has done so. So that's how you can adjust your budget report. And then you can go back in here and say, okay, the total is $125,965. So if I go back on over $125,961, it's off by rounding, most likely. So I'm pretty much okay with that. I'm not going to go into too much detail to kind of double check it more than that, because it's a practice problem. So we've got the budget in place. That's the general technique. Now that we've got these two budget reports now, so clearly when we first put the budget in place, then we're not going to have any actual numbers. So this is probably the budget that we would first kind of present. And we can format it in different ways. We can go back up top and we can change the date ranges up top to run it for different periods. So you might say, I'm going to run it, you know, from 01, 01, 2, 3 to 03, 31, 2, 3 for like the first quarter, and run the report that way. Notice you don't have anywhere near the kind of formatting capabilities you have with a normal income statement, because you'll see that you have different options. If you go to an income statement here, you've got the month by month and so on breakout. And you can't do the comparative type of reports as well, because it's just a budget. So the only comparative report that we have is a whole different report, which is budget versus actual. That's why I say that if you were to, for example, create this budget, which you can just from the prior year data, we saw that you can just kind of easily do that. Then of course, as time passes, you can make a budget versus actual, your budget constructed from the prior year data. But if you were in, if you were in QuickBooks, you could just do a comparison to the prior year data using, using just a comparative report analysis, right? You can compare to the prior period and the prior year. So there's, the budget isn't adding a whole lot unless you construct the budget, of course, to be something more than just the prior year data. That's usually the kind of like the baseline. So we can, we can build our budgets thusly. Now we've put the first two months of the budget in place and have actual data for it as well. So let's hit the right click on the tab again and duplicate and let's look at the budget versus actual report, which is a great report as time is passing to see what is happening and your comparative comparison to what you expected to happen. So we're going to say budget versus actual budget versus actual. And so there we have that. And so now we've, this is a quite long report if we're running it for the entire year, because it's getting our budget versus the actual for each month of the year. Now we only have two months that we have actual data in it. January, we've got the actual versus the budget and the overview. And then we've got February. And then of course, we had a little bit of data in March. And then in April, we don't have any actual data. So for us, as we run this, it would make sense for us to run it for the first two months possibly. So we're going from 01, 01, 23 to 02, 28, 23. And then we could run it. And that's our standard report. We're going to pull out the trustee calculator just to see some calculations here. So now we've got January data, February, and then it gives us the total. This is similar if we were to run an income statement, kind of like on a, on a, on a side by on a month by month basis, as we did here. So now you've got January, February, and then the total year to date. So that's how the, the budget is set up. So if we do a comparison here, we've got the actual, we've got the budget. And then we've got the over budget. So I'm going to take the five, three, eight, five, seven minus the three, four, six, so six. And that's what we're coming up with the 19 to 51, which of course is the budget, which is the over budget. And then we've got the percent of the budget, the percent of the budget is taking the 53, 53, eight, five, seven divided by the budgeted amount three, four, six, so six. So the actual amount, if I move the decimal two places over about 155.63% of the budget because the actual was over the budget. And then you can do that for the expenses and so on, on down below as well. So you have a couple other options up top. We of course have the date range options that we looked at. We don't have the same kind of comparative options once again, because this is the comparative report comparing the budget, which we manually input versus the actual, which is what we built when we entered the data input for past data two months in our example problem, having been passed at this point in time, you've got the same kind of thing where you have the active cells, rows versus all or zero and so on. And then we've got these items where you can see the default is to have the over budget and the percent of budget. But you can also have, you might choose instead of these two to show it this way. So this is kind of a matter of preference. So now you've got the amount remaining. So so and so now you've got a negative number here for the amount remaining. So in other words, if I was to hit this again, and I was to say over budget so we can see both of them. So you've got the amount remaining. Let's see, run it running. So now you've got the over budget amount remaining. So you can see it either way you want to you want to see it. And then over here, we've got the remaining amount versus if I hit both of them. These are just basically taking the inverse kind of relationship here. So let's run this again. So now you've got the percent of budget and the amount remaining. So let's pull off the trusty calculator and just take a look at this. If we scroll down, we've got the actual, the budget, the over budget and the amount remaining are the same number. It's just the difference between the actual and the budget. It's just which ones are you subtracting from which one, making it negative or positive. The percent of budget. Let's take a look at this one, which is just basically looking at, I'm looking at the total income as just going to take the actual, which is over the budget right now. So five, three, eight, five, seven divided by the budget, which is three, four, six, so six. And that's where we get this, this number that's over, you know, 100%, which is the 155.63 because the actual is higher than the budget. The amount remaining, the percent remaining is taking the difference. So we'll take the remaining item, which is negative because the actual was over the budget. So we don't have anything remaining from the budget side of things. And you, this might feel a little bit different when we do incomes accounts versus expense accounts, but we're going to say, all right, so this is going to be the difference of the 19251 divided by the budget of three, four, six, so six, moving the decimal two places over, there's our 55.63 about and so on. So that's the general idea. So notice that you probably wouldn't have both of these items, you know, the over budget and the amount remaining since they are somewhat redundant. And you probably wouldn't want both of these percentage items as well, choosing one line or the other. The default as we saw is to have these top ones over budget and percent of budget. Let's see the other side just having the bottom two and run that make sure I run it. So there it is. So there's the budget versus actual and you can run it. You can check a look at the total numbers on the right hand side as well. So that is that the two budget reports being the budget versus actual and the budget overview report, the budget versus actual being useful basically as time passes, noting that you can of course run multiple gut budgets, which would be displayed within the drop down as you get into your budget reports.