 QuickBooks Online 2024. Budgeted Income Statement Reports. Get ready and some coffee because we don't accept excuses about being too tired unless someone like forced you to carry two tires in which case then you've been too tired against your will but in any case let's get into it. 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 trust me I'm an accountant product line yeah it's paramount that you let people know that you're an accountant because apparently we're among the only ones equipped with the number crunching skills to answer society's current deep complex and nuanced questions. If you would like a commercial free experience consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com. Here we are in our gig great guitars 2024 QuickBooks Online sample company file we set up in a prior presentation opening the major financial statement reports as done 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 the same with the profit and loss otherwise known as the income statement and once again for the trustee trial balance we're going to tab to the right close up the hamburger and change that range we're going from 010124 tab 022924 tab selecting the dropdown so we can see this on a side by side basis let's tab to the right and repeat the process we're closing that hamburger on the profit and loss otherwise known as the income statement changing the range and 010124 tab 022924 tab let's see this on a month by month breakout and then tab to the right and one more rep on this one one more rep people 010124 022924 and then select the dropdown months and then we will run the report that was the last one we pushed it out boom okay so then let's go back to the income statement last time we've been thinking about the budgeting process related to the income statement thus far noting that the method you might want to use is to export the income statement from prior periods to something like excel like we did here and then use excel to then take in the information from all the marketing geniuses and whatnot so that we can come up with a plan to improve revenue that's the goal we're trying aren't we trying to make money I feel like some people someone lost the message along the way I thought the things that were changing were supposed to help us make money if someone needs to tell the entertainment area the movie makers or something need to the bottom line seems to be here anyway they that's what's going to happen we've made the changes in here and then we imported this back into our quick books so we put it back into quick books by going let's go to the first tab we went into our dropdown up top and then we went into our budgeting and we created our budget and we did so by basically having a template in excel and then importing it which is a pretty I think a quick method to do it so then we made sure that we didn't have any adjustments to it it says here run the budget versus the actual so you could actually run the report from here we we also could look at the reports within the report center so if you go to the report center and type in for example budget then you will see our two main and primary budget reports here now note that if you don't have any budgets then you're not going to find these reports in the report center and so let's actually duplicate this tab I'm going to right click on it and duplicate it and then I'll open the report I'm going to pull it to the right so now we have our reports over here I'm going to type in budget and then let's do the overview first so this is the overview just giving us the data for the budget let's close up the hamburger we have similar options up top as we do for other types of reports but remember the budget report is different than any other kind of financial report when we look at all the other financial reports for the most part we're talking about reports that will be constructed along with the major financial statement reports balance sheet and income statement as we do the data input usually with these forms and by cycle customer cycle vendor cycle and the payroll cycle the exceptions to that include say the bank reconciliation which is an internal control check report so it's not being constructed as we do the data input but rather created as a check to the bank and then of course the budgets here being another kind of exception because they are not based on past data they're based on future data so of course they're not actually linked to the to the to the data input forms as are all other reports all other reports are generally giving more information about one or multiple line items on the balance sheet income statement the major two reports so we have less options as a result in essence of of the budget than we have unlike a income statement so if I look at the income statement for example you can see we have the date ranges that we can be putting in place we have a whole lot of drop down options in terms of how we want to view the data by month by quarter by year and then we can even view it by customer vendor employees and so on we have our information here to show active this this whole thing is not really necessary in a budget because we're not going to have any zero balance that show right so it's only going to show the ones that have numbers in it generally and then all of this stuff with a comparison to the previous period and where we can make comparative reports isn't generally going to be showing on the budget because it's just going to show what we have put in place and compare budget to actual when we run that report we can't really toggle generally between the cash and accrual basis as we can with the profit and loss because the profit and loss is based on this data input form and they can change when for example revenue was recognized from the point of the invoice to the received payment the budget is just us inputting data so it's not going to have that toggle and if we go into some more of the customized areas just note we have some formatting things that will be somewhat the same our filtering options are probably not going to be as relevant on a budget although they're not all that relevant on an income statement here they're more relevant when we get in transaction detail reports and then we've got like the header information which will be somewhat similar on the reports so if I look at the same thing on the budget right we've got the the custom up top we've got the the date range so we could change the date range I could bring this back to just uh 01 31 24 and run it there so I can limit the the date range if I so choose uh within the data input that we have put into the system which was a years worth of data input for 2024 let's go back to uh 12 31 24 uh run it and so here's all the months we have our drop down of multiple different kinds of budgets meaning we could have more than one budget and so this drop down will allow us to toggle between the budgets which we can do here or as you saw if we go into the first tab we can go into our budget view and go into our budgets here and we can we can sort through our various budgets this way as well and hide hide the inactive budget so if I hit the drop down we can run the budget overview report edit archive it so we can archive the budget and then we can duplicate the budget or delete the budget as time passes uh and the budget becomes obsolete possibly over time and then we have uh the it does still have the active zero and non-zeros so again if I say if I show all the accounts and say run it that gives me all the accounts that I didn't put any data input into the budget so that's probably not that useful all you know because you know it might be useful to see I guess if you didn't have all these different accounts but generally you're probably not going to use that much because you want to show all the ones that are active that you put information in I don't think the difference between active and non-zero is going to have any any difference due to the fact that this information is just strictly from data input whereas if there was a clearing account in like an income statement then the active accounts while still being zero would still have possible data that you can drill down on so let's go back to to this format run it so there we so those are the basic options if I go to the customize up top you've got the budget information here we can do the same kind of customizing for the we could divide it by thousands in other words if we wanted to to show it in a in a in a smaller easier to reformat we can remove the sense which I think is a common thing to do because it's a budget the pennies are probably not going to be relevant to this decision making and if you're looking at large numbers dividing by a thousand might be relevant as well because once again it's a budget which by definition is is an estimate I like to have the negative numbers bracketed personally and read and then show grid actual so so we could have the actual versus versus months actual versus so I'm going to leave that here and then we got filters so we have our one filtering we have far less filtering options but generally we're not going to do a whole lot of filtering with it and then we have our header and footer down below where we have the logo we could put our logo on there hey company name we can change the name we can we can adjust the report title as normal we can uh the the report period we can have it there or not we can take away the date prepared and the time prepared which I typically do and then we can align it centered by default or we can align the headers to the right or to the left same with the footers let's go ahead and save that so now I put the logo in there so now it looks way better and then I've removed the pennies so we can see that and then the negative numbers are showing as uh as bracketed so we have our negative net income right there so that's going to be the general overview obviously this is just basically reflecting our data input that we put into the system on a month by month basis looks like an income statement so income statement performance statement we have our estimated income up top we can scrunch all these numbers down to to the baseline so this would be like our basic uh uh report so here's our income that we expect to have on a month by month basis here's the total on the year here's the cost of goods sold the gross profit is just subtracting those out that's the subtotal to get on the way to net income just a pit stop along the way then we have all the expenses typically the largest category and then we've got the net operating income net operating income is the estimate of income from normal operations and then we have the other expenses and we could possibly have other income under that those are going to be income and expenses related to things that are not part of the normal business operations so we're not sure if they're going to be happening again next year like if we got hit by a hurricane or something and we happen to be in non-hurricane area so we don't usually get hit by hurricanes then maybe that would go into other because you don't expect it to be repeating for example and then we've got uh net other income and then uh net income the bottom line we're looking at the end of the year to be making 179 953 net income 125 969 due to the brilliant marketing experts that we brought in which I'm sure are just going to take us to the top they brought they bought some new IPs they brought in some new IP properties and they're going to and now they're going to change them and make them better because the IP properties before were making a lot of money but they were stupid compared to the according to the the team here and so they're going to buy them and then make them better and then that's going to make us a whole lot of money all right let's look at another report let's hit the let's right click on this one and duplicate it look at the budget versus actual report and we're going to go into the reports on the left hand side we can type in budget versus actual let's go into that one and close the hand boogie so now we have the custom report it's we're still looking at the entire year we're still looking at the same the one budget that we made but now we're comparing it to the actual and active and it's on the accrual so what this is doing of course is giving us each month and then it looks quite expansive because we're looking at each month and basically the activity of the comparison of the actual what happened versus the budget now remember when we did the data input we input the data uh we input the data on a as as for the first two months of january so we have actual data and budget data for january and february in other words and we don't have any any actual data for anything past that point so the budget versus actual will then be more relevant as time passes so clearly if i put a year's worth of 2024 budget in place then after two months have passed we might run this report for the two months that have passed which would be 022924 and then we can see our our budget breakout for the two month period now the thing with these budget reports you would kind of think that they that if you enter this one budget on a month by month basis that you can change the dates to like to like a quarter just showing you the third quarter by quarter and you can't do that it you could make multiple budgets right so i could upload another budget that's quarter by quarter versus month by month and year by year but but so that's kind of interesting you'd kind of think that they'd be able to figure a way that you could adjust the whole year budget that you put in month by month to quarterlies but you can't really do that you can add another budget you know and see it that way but in any case we've got then the the january here's the actual number here's what was budgeted so if we pull out the trustee calculator we could say to do what has happened what has happened we could let's look at the totals down here so we're going to say this is the 56857 minus the 3460550 gives us a difference of the 19250 150 and this is going to be a percent of the budget so if i take then the note this is not a change of over time so you might think you take the difference divided by like one of the budget or the actual but we're looking at the comparison of the actual 53857 divided by the budget 34605.5 so so if i move the decimal two places over the actual is 155.63 over the percent over the budget that's how you're looking at the you know the percent of the budget so if you looked at it if you had one that was lower like this one here here's what actually happened this was the actual 15 divided by what was budgeted 17.5 so now we're saying it's if i move the decimal two places over the actual was 85 percent of the budget now obviously on the income side of things if we're if we're over budget that that clearly is good whereas on the expense side of things then then we would we would hope to be basically under budget is the general idea right so this is under budget here so this one's over budget so then we can go through here and compare what actually happened to what we planned happened this is the the big report or the best report in QuickBooks this is why you import the budget back into QuickBooks so that as time passes you can run reports such as this and compare what actually happened to what was budgeted now then you've got the two months here and then you've got the total so this is the year to date total right because there's only been we only did data input for the two months it's not let me scroll to the right what if i scroll okay i had to zoom out a little bit so then we get the total over here and and so we can look at basically the year to date budget versus actual so that's the general uh income statement that's the major performance type of report so quick recap if you are a bookkeeper then note that and that you can't really be expected to just generate a really nice budget just by the past data right because it's kind of outside what the bookkeeper does but QuickBooks does has the capacity to make a budget and if you want to make like a basic budget based on just past numbers you can do that as a bookkeeper that might be somewhat impressive you can say hey look this is what happened last year i made a quick budget for you but that budget's not going to be all that useful given the fact that you could run reports of an income statement as time passes comparing the current period to the prior period right so so so although the budget might give you a little bit different look as you break it out on like a month by month budget the budget so but so what what would really be helpful with the budget if you wanted to provide that as a bookkeeper or as part of the accounting department is to take the accounting skills we have and the understanding of what the financial statement looks like create the past data and then try to figure out what changes could be made such as marketing what's going to happen in the economy changing price levels and whatnot and then predicting what's going to happen in in in the business and then of course when we see what reality happens then we should adjust our models this is where it seems like a lot a lot of businesses like even the big ones don't seem to be doing it this way it's like wait it's like you just lost Hollywood you just lost tons of money like over and then over and then over are you comparing like what you did to what you like plan to do and then you're supposed to change according to like what the customers are want because they're we're going to pay you you're doing stuff so that they pay you right so then we make changes so that we increase the revenue we're trying to we're trying to grow we're trying to we're trying to grow the business that's the idea anyway so in a following presentation we'll get into the balance sheet the balance sheet's a little bit more complicated because again the balance sheet is where we end up after the performance of the income statement so we'll get into a little bit of theory on that one but not too much we have a whole nother course or section on that if you want to get into budgets in more detail but we'll that we'll make a budget in the balance sheet then we'll upload that into quickbooks as well