 QuickBooks Online 2023. Month 1 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 opened the free QuickBooks Online sample company. If you want the to open at the same time we suggest using the incognito window. 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. 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We're going to use the sample company to compare and contrast the accounting view the view that get great guitars is in and the business view the view the sample company is in you can toggle back and forth between the two views by selecting the cog up top switch the view down below duplicating some tabs to put reports in we're going to right click on the tab up top and duplicate it and then we're going to right click on the tab up top and duplicate it see how I duplicated the process then I'm going to go to the tab to the middle we're going to go then to the reports on the left hand side open up one of the faves that being of course the balance sheet report note by the way if you're in the business view it's the reports are in the business overview and then the reports on the left those are where the reports are at back to the accountant view tab to the right reports down on the left open up the profit and loss the P in the L the income statement close the hand boogie on the top and then those ranges they are a changes 010123 tap 123123 tab run it to refresh it tab it to the middle and then once again closing the hand boogie scrolling up and will change the range 010123 tap 123123 tab and run it to refresh it now we've entered the beginning balances and we've entered one month of data input now let's just think about what has been created in terms of the end result this is kind of like an auditing process right when we make the books when we enter the data as we add the forms that's like the bookkeeping accounting process and then when you go to the end result and drill back down to the source document you're kind of doing more of an audit type of technique but it would be similar to putting an engine together and then taking it back apart so now that we've added the information into the system from one month of data let's think about these two reports and then also how we might be grouping these reports if we want to provide them to say a client or a supervisor on primarily thinking a client here so clearly the two main reports that were we're thinking about are the financial statement reports that being the balance sheet and the income statement and then we have the subsidiary reports most of which are given more information about one or multiple line items in these two main reports so let's just go through the balance sheet and think about how they've been put together thus far so if we go through our balance sheet we've got the assets liabilities and equities that's going to be the accounting equation and within the assets let's just close everything up and we'll kind of open everything as we go to analyze these major super important reports so we've got the assets that's what the company owns notice you can kind of think about the assets as an investment because the whole reason they're in the business file and not in your personal investments is because you're going to use those assets like property plants and equipment for example to help you to generate revenue and you think you we think we can generate more revenue in the business and then we could if we just put the money into the bank and get interest or in stocks and bonds so the assets are kind of like an investment to that in that sense within the assets we got current assets and fixed assets these are common just financial statements categories and these have been put together just in terms of financial statement classifications if i open that up then we have the account types notice that these two arrows these three arrows are being constructed if i go to the tab to the left and then go down to the accounting down below accounting and then the chart of accounts and if you're in the business view by the way it would be in the bookkeeping the bookkeeping and then the chart of accounts so if you're in the chart of accounts you can see the account types it's sorted by account types bank accounts and then accounts receivable and then other current assets that's how it's being constructed so every time we enter something into a you know a bank account type there's our checking account accounts receivable account type there's our accounts receivable now this gets a little bit wonkier or changes a little bit from the standard financial reporting because usually for financial statement reporting we would call this just cash and cash equivalence or something like that we wouldn't call it bank accounts but bank accounts from a bookkeeping standpoint within quickbooks it's quite useful because the bank accounts act differently than other accounts they have they have the bank feeds possibly connected to them now if i go into this checking account here notice that the cash account is like the most important account because it's the lifeblood of the company all accounting cycles feed into cash or cash feeds into all accounting cycles however you want to see it's a lifeblood of the of the cycle so if i look at each of these cycles the vendor cycle no matter whether we're on a cruel or cashed based system at the end of the cycle we would expect cash typically to be going out for goods and services that we purchased that we're going to use in the business on the customer cycle whether we're on an accrual system cash based system reliant on the bank feeds at the end of the cycle we expect cash to be coming in employee e-cycle at the end of the cycle we expect cash to be going out so therefore cash has more account types than any other type of any other account and so you're often sorting the cash account more likely than other accounts using the customization and sorting options filtering by transaction type here so let's just think about the types of transactions obviously the deposits increase the expense forms are like check forms they're going to decrease you've got your check forms which are check forms that are like expense forms with check numbers that decrease and then we've got the bill payment form which is like a check form it is basically a check form but it's going to the account payable so we always know when we see the bill payment form that accounts payable is going to go down and the payroll check form is a check in essence but it's labeling it specifically to show us it's a payroll check so there's those items basically it goes up goes up with a deposit down with check type forms is the general form but the check form can then take different variations in terms of an expense form being a check form the bill payment form being a check form the payroll check form being a check form you could also have transfers that we might talk about later we'll definitely look at them when we get to the bank feed section or a course so let's go back and to our balance sheet then we've got the accounts receivable is the next item it's a little bit weird to have accounts receivable with a drop down when you only have one account in it the reason it does that is because this drop down is created from the the chart of accounts that we have created accounts receivable has a special special need that it's going to have a sub ledger related to it and QuickBooks will not let us post to accounts receivable unless there is a unless i'm going to close all these up we have a customer related to it so it can make a sub account so if i go into the accounts receivable what has what has been used to increase and decrease the accounts receivable it's a lot less than the cash account right it goes up with an invoice that's the thing that increases accounts receivable it goes down with a payment that's all you're going to see here you're not going to see other stuff in here unless things are something got messed up typically you just see increases and decreases invoices people owe us money they owe us more when they get a payment now they owe us less because they paid us this sub report is broken out you can see by by date we also want to see it by customer so that's where the sub ledgers come in for that particular report right click it on the tab to the right duplicating it let's take a look at a sub ledger report the most common one if i go down to the to the reports it's too zoomed in it's messing me up i'm going to go to the reports and then we're going to say who owes you let's look at the accounts receivable aging and change the date to i'm just going to go 123123 run it so there it is broken out by by a customer we got the sub customers 14 68750 ties out to the amount here then you've got other current assets that drop down everything else that is a current asset that doesn't have a special need up top is in other current assets we've got the inventory account we're tracking inventory perpetually which kind of forms are going to affect this account you're going to have inventory starting value that's the opening balance and then checks when we purchase the inventory later we might purchase with bill forms that will increase the inventory and then invoices which decrease the inventory when we make a sale as well as sales receipts decrease the inventory when we make a sale that's all you're going to see on the inventory typically this is by dollar amount however and we also need to track inventory by unit and therefore if i go to the tab to the right we have our sub report that we've been looking at which is inventory valuation summary as of 123123 run it nine six nine eight is the is the nine six nine eight here and then we've got payments to deposit that's that clearing account that goes up and down when we have the holding account for sales that we have made that we have not yet made a deposit we have the prepaid insurance that's the account that we put the insurance to so that we can allocate it over the life of the insurance policy using an accruable concept we've got the short-term investment that's when we took money out of the checking account and put it into say stocks and bonds for example we've got the fixed assets we purchase the fixed assets but note that fixed assets are things that you don't purchase all the time so we would expect the fixed assets to be going up with expense type forms if we paid cash for it possibly a journal entry if we financed the purchase of equipment we took out a loan for the purchase of the equipment we expect to see not much going on and the equipment account in terms of the general ledger activity transaction detail as with the cash account because we don't purchase large things on a day-to-day basis and then the other side of that accumulated depreciation we only have the beginning balance in place we're not going to do an adjustment for it until we do an adjusting entry at the end of the period and then on the liability side of things let's go liabilities and equity these are third-party liabilities we've got accounts payable this is like accounts receivable but now that's what we owe we'll talk more about it in the second month it goes up with a bill form and the bill form we can't see because it was a beginning balance and it goes down with a bill payment which is a type of check form that's all you expect to see in the accounts payable but this is by date we also have a sub ledger report that is going to be by by vendor which i won't look at now because we don't have much detail in there yet we didn't do anything much on the visa card yet but if you're using the visa to make a lot of payments it would act similar to a bank account up top and that's why it's got its own section here instead of just being under other current liabilities because you can connect it to the bank feeds anything that doesn't have a special need that is an other current liability type of account is down here so we've got the this is our sales tax payable which is only going to go up with the sales forms which are invoices and sales receipts they will go down when we pay off the sales tax which we'll do next month and we'll see that transaction and then we've got the payroll taxes which are going up in terms of a liability when we process a payroll they'll go down when we pay the payroll and then we've got our equity accounts as a sole proprietorship we have our our equity main account not being called retained earnings but we changed it to owner's equity and then we made a separate account for investments and the income is going to roll into the owner's equity automatically that's the closing process that QuickBooks does automatically if it were a partnership we might have multiple capital accounts we might call them for the partners to track each partner's claim to the assets in the business and each partner might have a draws account the money they take out each partner might have an investment account the money that they put in partnerships are actually some of the more tedious bookkeeping to do more difficult in many ways than a corporation because a corporation although it has multiple owners breaks out the ownership into standardized units that's the point so that that's when you have the retained earnings and then instead of draws you have dividends because everybody has to agree on the dividends per share and that's more of a corporate type of decision as opposed to an individual partner deciding to draw out whatever they want in accordance with the partnership agreement and with their capital account and so on so then on the income statement or the profit and loss we've got income of course now income we broke out into the billable expenses that's when we use those billable items so we didn't have control of the income account it went to and then we've got the general sale of products sale of services notice what we do not have I don't have sale by customer I didn't make a separate account by customer I didn't make a separate account by individual service or inventory item that we sold unit of guitar for example because that added detail if we're using a full service bookkeeping system meaning we're using invoices and sales receipts and items to to report we'll have sub ledgers for right so we have the sales the sales reports where you have sales by customer report and sales by product report that's a common kind of error I think that people make now there are times that you might make a sales account and put the customer name like if you're getting paid by youtube and you're using the deposit form through the bank feeds like the bank feeds come through you have a deposit form now you're not using a full service system you're not using invoices you're not using sales receipts but just a deposit form and therefore you might want to name your income account by who gave you the income like the platform like youtube or something like that but if you're using invoices and sales receipts then typically you don't want to have a different income line item for every customer or every item that you sell you want to group them together because you have those sub reports that can give you that added layer of detail without cluttering up your income statement now obviously these go up with invoices and sales receipts income statement accounts by a general rule only go up they only go up until we close them out at the end of the year the closing process resetting the odometer so it goes back to zero and QuickBooks basically does that automatically so and so they they go up and then the the cost to get sold is an expense account for the sale of inventory it's going to go up whenever we make a sale or a invoice sales receipt or invoice and again it only goes up typically unless we have like a credit memo or something and and so they go up and it only works that way if we're tracking inventory on a perpetual inventory system if it were a periodic inventory system we would have to make periodic adjustments to record the cost to get sold and the reduction of inventory by using a physical count of the inventory and then we've got our expenses we've got the payroll expenses which were generated when we ran payroll and then the supplies the the the telephone and utilities usually the standard easy expenses to enter kind of expenses to enter most of them are easy kind of expenses to enter and they usually are entered with check forms or expense forms these are the ones that can work quite well if you're using it and notice that invoices and anomaly because we were showing how that billable thing didn't work quite right so so don't don't let that one throw you off you don't want to have an invoice in there if it's in there it's messed up but so that's gonna be so that's that those are the ones you can usually set up with the bank feeds which we'll talk about and that works quite well usually for them if you're doing electronic transfers which we'll talk about in a future course or section and there's the net income the net income flows in to the balance sheet that's how the balance sheet is part of the income statement or income statement is part of the balance sheet and if I was to go up to another date of 2024 010124 to 123124 and run it you can see down here the net income rolls into the equity account which we changed from retained earnings to equity because it's a sole proprietor okay now if you're gonna give these reports to an external person i'm gonna change the date to say 010123 to let's say 0130123 and let's imagine we're gonna provide these reports say to our client right for providing them to a client then i might want to do some customization so i'm gonna do that i'm gonna say let's customize it up top and let's say for example i'm gonna get rid of the pennies i'm gonna put brackets around the negative numbers this is what i usually do i'm gonna show in red bracketed numbers i'm gonna go to the headers and footers i'm gonna get rid of the date time report basis and balance sheet looks good and then i'm gonna say okay let's save it and so that's what it looks like here now you can also run comparative reports and you can run but but we only have one month of data input so we'll talk more about that at a future point but there's there's the report that you might provide externally so now i'm just gonna and so then you might save it you might customize or save the customization and i'm gonna call it balance sheet i'll just keep it at the balance sheet and then we'll say where am i gonna put it let's add a group and i'm just gonna put it under my name i'm gonna just put rob or let's say month and month and reports and i'm gonna add it and then add it into my group and then i'm just going to save it and then if i go to the first tab and i look at my reports then and i'm trying to group my reports at the end of the month i can then go into my reports over here on the left hand side and then my customized reports and there it is so i should be able to just open it up and generate it automatically back to the tab to the to the right so let's do the same for the income statement i'm going to go up top and i'm going to say let's customize it and i'm going to get rid of the sense brackets around the negative numbers make them red and then header footer i'm going to say no date time or report basis and then i'm also going to change it to an income statement income statement and so then i'm going to say okay let's save that let's save that and then i'm going to save it customize it actually i already customized it i'm going to save customization and i'm going to call it an income statement i'm going to put into my month end reports boom okay so now if i go back to the first tab and refresh it with a little refresher thing then i've got my month end reports that looks good so i'll actually print them later but that's how we might want to save them and then think about how we're going to group them then i'm going to make another report that is a common as a nice report for for internal reporting needs and that's going to be let's close up the hamburger i'll just find it in here it's down here in the accounting area accounting for my accountant and we're looking at you got this nice journal report which is a great report that kind of breaks things out in journal entries but but i think i'm going to use this transaction detail by date not the one by account the transaction detail by date so this will give us all the transactions that have taken place and i'm going to run this for the month of 010123 to 123123 and run it so there's there's our transaction report now this is a great report to kind of help us drill down a little bit further on on any kind of differences that we have so if you're supervising someone it's a great report it's not often a report that you provide to customers but it might be a report that you provide if you you bill them not by hours but off but but by number of transactions so you might say hey look i'm going to bill you by transactions on a monthly basis if you're within this range of transactions 1 to 50 this is how much i charge you you have 50 to 100 transactions this is how much i charge you and then you might have a billing rate that you can set up and then you might give them this as evidence so you have something that's maybe a little bit more concrete than just like an hourly rate so that can be kind of a nice system to set up so so before we go through that report though let's open up the balance the trial balance as well i'm going to right click and duplicate and i'm going to open up the trial balance too there's so many good reports i'm just getting overwhelmed with like the the possibilities we have let's go to the trial balance type it in the trustee trial balance and let's make it just for the month of 010123 tap 12 let's go to 013123 so this is where we stand as of the end of the month right now so this this transaction detail report is also a great report for us to check our numbers so this is where we stand at the end of of of the first month of data input or thus far so you can see if you tie out here if you do not tie out then we can try to use the transaction detail report to kind of drill down so remember what you want to do expand the date range see if that changes anything if it does then it might be a date issue and the next thing we want we might want to do is look at our beginning balances and we entered our beginning balances in as of 12 31 22 to i'm just going to put 12 31 22 and run it so when we entered the beginning balances these are the first things that we put into place in the prior section of the course and we checked our numbers at the end of that section so if these numbers are correct as of this date as of 12 31 22 then we have the beginning balances that should match and then if if i then change this up to 010123 to 013123 and our ending balance here do not match then you might want to expand the date range to a date beyond this to see if there's transactions entered beyond that date and then the difference between these two should be from of the transactions in the transaction detail report so in other words we can drill down on each of these transactions and each of these transactions are the same then we have to come up with the ending balance that is correct if we had the right beginning balance and we entered all this detail which is the difference getting us from the last point to this point then the endpoint has to be correct so you can kind of go through these one by one and take everything off if something is on our side but it's not on your side then you might want to expand the date see if it's a date range issue and then you can add it if it's on your side and it's not on this side then maybe it was a double entry or something like that and you can delete it so this is also a nice report because you can you can look at all the transactions not by account like a general ledger but by the date they were entered and look at the various activity that were put into place it's also a report that you would often use for filtering up top to customize it so let's just take a look at it we got the date we got the transaction types where we have the deposits the inventory and so on this looks more like a cash transaction detail report because there's a lot of activity here but the fact is that this transaction detail report is for all of all of the accounts then you got the name you got the post in you you've got the that's the number and then the name vendors customers employees memos that we have added and account so this is the main the principal account that they kind of think of that's tied to a particular form and the split account is the other account impacted so a deposit form for example the main account is the cash account the split is wherever we put the other side of the transaction now the problem with this report then is that you have these splits down here because these are accounts that have more than one more than two accounts affected or at least more than two line items so and that's kind of the issue with it so you can get more detail by opening up a journal report that has has all the detail related to it but if you go to a purchase order you know you've got the accounts payable you've got the billable expense you've got the invoice the main account is accounts receivable the other side you would expect to be income so those are that's the transaction detail report and i'll just open real quick the other main report which is the the journal report so let's go down and talk about the journal report real quick and so this is a similar report from 0101 to 3 to 0131 to 3 and now it's showing us everything we did but now it's giving us the debits and credits of the transaction so it doesn't give us those splits this way it gives us the whole the whole transaction this is another report that you could use for billing if you wanted to actually count the accounts that are impacted and then and then bill based on the number of accounts you might say how would i do that i'm going to count all the accounts well you can export it to excel and use excel to count in some way use a formula so we might do that next time so so next time we're going to think about how we can group these reports and provide them to a client so we've thought about that a little bit here we've got the reports that we customized that we can then set up so that we can just run them periodically monthly, quarterly, yearly and give them to a client we could then batch them by creating a pdf file we could email it we could zip it and email it we can use this management tool to create a nice little formal report monthly or we can export it to excel use excel to create one pdf file or use excel in conjunction with word to make a nice formal presentation and giving this information to clients is like is part of a big part of the process of bookkeeping oftentimes because that's when you actually get to physically show them what you're what you're doing because most of the time they don't know what's going on depending on who you're working with and you want to give them confidence that you're doing things well and oftentimes just the look of the reports can be a big factor in that so it's useful to take the time to think about how you're going to group the reports together we'll do that a little bit more next time