 QuickBooks Online 2024, Budgeted Income Statement Correction. Get ready and some coffee because we're doing some quick thinking with QuickBooks Online 2024. Here we are in outward geek, Ray Katar's 2024 QuickBooks Online Sample Company file. We set up in a prior presentation opening the major financial statement reports like we do every time the reports on the left within the favorites we're going to be right clicking on that balance sheet to open a link in a new tab right clicking the profit and loss to open a link in a new tab and doing the same with the trustee trial balance then we'll tab to the right so we can close up the hamburger on the balance sheet and then we're going to change the range 010124 tab 022924 tab and then we're going to see it on a month by month breakout run the report then tab to the right we're going to close the hamburger on the income statement this time the income statements the meat and we're closing the hamburger on the income statement but the bun on the anyway 010124 tab 022924 tab selecting the drop down months month by month run the report tabbing to the right one more time hamburger closing on the trial balance then we're going to go from 010124 tab 022924 tab let's see it side by side with the months and run it let's go back to the balance sheet or let's go to the income statement actually the profit and loss report in prior presentations we've been putting together the budget the process for doing so was that we first take the past information that we have in our case was the past two months january and february export that to excel so that we can use the past data as some kind of starting point to then make adjustments on based on what we're going to do to improve the future now I had some questions about the improvement process but as the accountant I was told to shut my mouth and just put the numbers in there so I was like okay you know this is so we're going to be making 125970 next year based on your based on all the stuff you were saying so that's where we're at and then we took this and we put it back into our quickbooks file and we did that by going to the first tab let's take a look at the process we went to the cogs drop down and then we went into the budgeting and we used an import feature to import the budget so we actually then looked at a template first a word from our sponsor yeah actually we're sponsoring ourselves on this one because apparently the merchandisers they don't want to be seen with us but but that's okay whatever because our merchandise is is better than their stupid stuff anyways like our accounting rocks product line if you're not crunching cords using excel you're doing it wrong a must-have product because the fact as everyone knows of accounting being one of the highest forms of artistic expression means accounts have a requirement the obligation a duty to share the tools necessary to properly channel the creative muse and the muse she rarely speaks more clearly than through the beautiful symmetry of spreadsheets so get the shirt because the creative muse she could use a new pair of shoes if you would like a commercial free experience consider subscribing to our website at accounting instruction dot com or accounting instruction dot think of it dot com that we used to populate so that we can import the information which is a little bit easier now after that we've noticed that the budget's a little bit off and we can see the budget here let's actually open a budget report going from the tab to the right right clicking on it duplicating that tab and then i'm going to go into the budget and so we'll go to the reports there's two types of budgets we can type in here budget and we see the primary budget uh reports budget overview and the budget versus actual i think the budget versus actual is actually the more uh significant budget because it gives something different than our excel worksheet as time passes but now however we would like to just look at the overview report to review to see what the differences are with what we have so that we can then make the adjustment to it so the question here is just ticking and tying off our our line items right so i can say okay if i pull out a trustee calculator just to put my numbers in place in excel i can select each category so here's my income that comes out to 34 606 right so i'm just going to type that in here it comes out to 34 606 and if i go into my profit and loss then over here i come out to 34 uh 605 606 about with rounding i'm off on the net income that's the issue i see the net income isn't tying into my net income here 1307 versus the 1371 so i can check section by section right just like that i can check the cost of goods sold and then each of the categories meaning the next big category is the expenses that's probably where the issue is given the fact that expenses is the longest category so that so it's going to be the most difficult to find right but the other way you can kind of look if you see a difference like this is to say well where's my net income at 1037 minus what is over here minus the 1371.73 and say okay i'm off by about 334 and is there a 334 in here which would indicate that i put something on my side that wasn't on the excel side or i can look over here and see if there's a 334 over here which would indicate there's something on the excel side as we could see here i've highlighted it that's not in quick book so here we can see we didn't add the interest expense and the next step if that didn't work you could take that difference and divide it by two oftentimes might give you a number that would help you to find something because it could be the case that you entered something twice so you're off by like double the amount or something like that or you flip the you flip the sign it should have been an expense but it was income or something like that okay so i can see that i i didn't add this interest expense so that's fine i could just fix it now so that the budget is not set in stone it's not set in stone or anything it's in quick books so let's go to the tab to the left and we went into our budget so we're in the drop down in the budgeting we see all the budgets that we've made all one of them here and we can hit the drop down and say i would like to edit that budget and fix it so let's edit it and then i'm looking for the interest line i'll just do it this way instead of fixing the import template and then importing it again as a different budget we could do that if it was a extensive change or difference that we needed to fix otherwise i think the easiest thing is just to go in here and put what we need to put in here so it was like other income man there's a lot of accounts i got lost here it is i think it's interest expense so right there and then this one actually goes down so it's a little bit of a pain because i have to put in each individual number so it's three three four then three one eight so i'm going to say all right this is three three four and then and then uh that's the total i'm not going to put it in the total yet let's go one by one this is three three four and then it goes to three one eight three oh two so i'm going to go okay uh three one eight tab 302 tab and then we're at 287 272 so 287 tab 272 tab i'm on june okay so then 259 246 so 259 tab 246 tab we're in august so 233 222 so 233 222 and then i'm going to go to october 211 200 190 uh 211 200 190 was it 211 200 so hopefully i got that right the total gives us a a check so that should total out to the budget total 3074 so 3073 it's off by rounding so i think that's good all right so let's go ahead and save it i have fixed it i have fixed it so we've we've done it fix the issue hopefully let's check it out let's go back on over and run it and then we'll check our net income on the bottom line so the total net income that's probably the first easiest thing to check 125 969 so 125 969 about and then we could check each of the lines if we wanted to and if this was if this check was off then the next thing we would check is each of the lines is each month off if each month was off in the net income total it would indicate that a whole line was missing or or messed up or something like that if only one month is off then of course i can then drill down on any one particular month so so we can check each of these line items you know 23 817 21 94 and 18 522 21 816 21 93 did it five nine 21 94 okay so i think these are correct i'm gonna i'm gonna assume they're correct for the practice problem purposes uh but that's the idea of it if you if you remember that these budget reports don't have a date a double entry accounting system to make sure that their input correctly it's just it's just pure data input so you have to you have to you you can use a double entry accounting system over here when you construct your budgets notice that we we have it really here why because we just did the income statement to do a double entry accounting system you'd have to kind of basically budget your entire financial statement right you would have to look at the income statements impact on the balance sheet which will give some assumptions to next time we'll we'll take a look at that to some extent but uh to you know to do the full process you'd have to think about a cash flow budget a purchases of capital asset budget and so on so that and then we basically think of the whole journal entry process right of thinking of where we where we were before and then how we would get to where we're going to be which would be represented by the balance sheet the balance sheet providing you a double entry system which would then give you some assurance that your budget you know makes sense from a from that point of view but here when we just do the data input here like with a tax return like a schedule c tax return or something we don't have the balance sheet on it so it's it's so it's kind of like you're just winging it if it's if you do a data input mistake then it's then you're going to have to just find it by double checking that we don't have the beauty of the double entry accounting system uh to to to to to lower the mistakes a lot if we're on a basic tax return like a schedule c same here you do that you do the data input you you get the information you're just doing pure data input it should mirror the look and form of the financial statement but like I say we don't have each form up here creating a journal entry that has two sides to it and therefore gives us a double entry system lowering the likelihood of errors therefore you might want to put a couple sets of eyes on this just to make sure that the the data has been input correctly put a couple double checks on it and then and then we'll run it going forward so we'll take a look at uh the report in a little bit more detail next time and we'll take a look at the other report which is the budget versus actual