 QuickBooks Online 2024. Financial reports generated from bank feed data. Get ready and some coffee because the accounting team is on board with QuickBooks Online 2024. 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 better than their stupid stuff anyways. Like our crunching numbers is my cardio product line. Now I'm not saying that subscribing to this channel crunching numbers with us will make you thin fit and healthy or anything. However it does seem like it worked for her just saying so yeah subscribe hit the bell thing and buy some merchandise so you can make the world a better place by sharing your accounting instruction exercise routine. 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 QuickBooks Online Bank Feed Practice file we set up in a prior presentation opening those financial statement reports as we do every time the reports on the left hand side within the favorites. Right clicking on that balance sheet to open a link and a new tab. Right clicking the profit and loss to open a link in a new tab and right clicking the trusty TB trial balance. If you don't have that trial balance in the favorites you can search for it. Let's go to the tab to the right close up the hamburger change the range we're going from 010124 tab 033124 tab selecting the drop down looking at it from a month by month perspective run it and then we'll tab to the right put the bun on the burger and then we're going to be changing the range from 010124 tab 033124 tab selecting the drop down and months run it we'll tab to the right one more time closing up that hamburger I've closed more hamburgers than I did working at the fast food restaurant we're going from 010124 tab 033124 tab selecting the drop down months and then we will run it let's go back to that balance sheet we're now going to be thinking about other types of reports that have been created most of them in conjunction with the balance sheet and the income statement so note that we have constructed most of these financial statements directly from data that came from the bank feeds were imagining they came through the bank feeds looking at other reports can be a little bit confusing a little bit daunting because there's a whole lot of them however if we take the perspective and understand that the major financial statement reports are the balance sheet and the income statement otherwise known as the profit and loss report then the other reports will be easier to visualize and categorize because they are typically giving more information about one or multiple line items on these major two financial statement reports these two financial statement reports being those that we have looked at every time when we entered a new transaction the trial balance over here basically just simply being the balance sheet on top of the income statement without all of the subtotals involved so this is the accounting equation just a quick recap on this the balance sheet is the accounting equation assets equal liabilities plus equity the income statement is going to give us part of in essence the equity given us the timing of the equity when we think about the accounting equation as assets minus liabilities equals equity net income rolling into that equity section also note that we have a statement of cash flows which is another major financial statement report but i don't think of it as the major two financial reports because typically if you were to construct a statement of cash flows you will normally start with the balance sheet and the income statement and use that to build the statement of cash flows so you can see it kind of as you know another report that's kind of supplemental in essence to the balance sheet and the income statement although it's a financial statement report all right let's go to the first tab and just review some of these reports on the left hand side clothes in the hamburger now we have our favorite reports up top which of course will include the balance sheet and the income statement they have to be your favorite that you don't have a choice if you don't have the balance sheet and income statement as a favorite then there's something wrong with you uh so you should because they're those are the major two reports now then you could have the trial balance up here those will also be housed down in the business overview the star representing the ones that have been pulled up into the favorites so let's just take a look at these we have the audit log that's going to give us some information that's more of an internal type of report noting that if you're a bookkeeper you might be considering these reports as something that is internal helping you to track things internally versus external reports those you might provide to a client or third party provider or possibly for tax preparation purposes as well we've got the balance sheet compilation now notice that many of these reports that are provided by QuickBooks are actually reports that can be constructed from the standard financial statement report in this case a balance sheet so we have other courses or sections on creating and formatting financial reports that you can take a look at to dive into that in more detail but that should trim down some of the complexity in all of these reports that are provided if you know that these are just basically variants that you can build using the the settings within the reports so a balance sheet comparison report is going to compare multiple periods which is kind of like what we did here there's two ways to do that comparison one with the drop down here two with the prior period and prior year components which I won't get into detail here but that's basically what the comparison report is the balance sheet detail report it's going to give you more detail of course the balance sheet summary is a useful report because it is going to be the balance sheet of course but you can't really construct it directly from uh the the normal balance sheet at least not as easily you could collapse all the sales but this is a useful report to start off with so if you're trying to give a an entry level report so that you can draw people into a presentation you might want to start with the summary balance sheet because most people roll their eyes at numbers as if they don't matter as if they're not all getting paid by the accountant here you know but so you have to kind of take it easy when you first start on the reports and get people warmed up to say hey but then maybe this is important and then you can jump into possibly the more complicated reports that have multiple periods and have multiple other accounts I would also think of this as an external report for the summary balance sheet not an internal report because when we're working internally we want to drill down on the individual accounts oftentimes to see if things were posted properly whereas this report is grouping the accounts together basically by account type so the bank accounts are the account types that we set up accounts receivable account types and so on let's close that one back out back to the first tab balance sheet that's another balance sheet report the business snapshot gives you kind of a snapshot information an overview most likely an internal document then we have the profit and loss reports otherwise known as the income statement type of reports so we have the profit and loss as a percent of income you might call this a vertical analysis profit and loss this is something that you can construct from the normal profit and loss report so if I go over here and we select the drop down we could have a percent of income so it's just a variant on the profit and loss a useful variant one you might want to know about but one you can construct from just a normal profit and loss profit loss comparison comparing multiple periods possibly just two periods looking at the difference and percent change or you can look at multiple periods like multiple months as we have in our report here a variant of the profit and loss profit and loss detail report profit and loss year to date comparison comparing the current year to date the current time that has passed versus prior year to date profit and loss by class which we have taken a look at which again you can construct from a normal profit and loss by basically just breaking out by class as we've seen in the past and so there's that one and let's bring it back to the month and run it and so then we have the profit and loss by customer similarly you can break your profit and loss out by customer with this drop down boom by customer run it and so then so you have that one so it's these are all just variants profit and loss by month that's the one we did so you could basically take your normal profit and loss break it out by month and then I can go back on over here so that's that one profit and loss by tags so tags is a whole another section in and of itself that we have on it if you want to dive into those in more detail profit and loss normal there's the normal profit and loss then we've got the project profitability summary so if you are using projects then that would come into play projects often used when you're using a job cost kind of system we have a whole another course or section on job cost system and using projects versus jobs and so on if you want to dive into that in more detail quarterly profit and loss summary so now we're breaking it out by quarter so you could do that with an income statement and you know break it out by quarters and then the statement of cash flows let's open this one up this is the other major financial statement report that we don't often look at as we're constructing the financial statements but when we're presenting them we have we have this one so quick look at it 010124013124 I'm just going to look at it for the first month here and why do we have a profit why do we have a statement of cash flows note that oftentimes when we look at the balance sheet in the income statement we would like to construct these more on an accrual based method now in our case we constructed these basically on a cash based method because that was the method that we imagined would be easiest to to build our books from the financial statements and it was driven by the industry that we're in on the cash flow this is a desktop flow chart we're using for online purposes we imagined our main point or starting point was one where each of these cycles were on a cash based system in that we paid our expenses as they flowed through the bank with the bank feeds and we got our revenue mainly with the deposit form as they as we got the deposits if we had gig work or something but we also touched on the accrual components such as dealing with inventory such as dealing with accounts payable such as dealing with invoices and we also touched on it with with things like equipment purchases and and things like that so the reason we have that is if I go to the income statement we need to track of course accounts receivable that's going to be an accrual thing and accounts payable so that we can properly pay them and collect on those if we if we buy fixed assets like buildings or something like that with cash we cannot just expense them because then we're going to lose the ability to compare period to period because we'll have this giant expense which will result in a huge net loss that won't be comparable so ideally we would like to have our books kind of on an accrual based method if we need to and but we don't want to lose the cash based method entirely and therefore we have a statement of cash flows which will give us kind of the best of both worlds we can do our books on on an accrual basis we can look at the income statement on an accrual basis and we can then construct another statement looking at the cash flows the main part of which basically reconstructs the income statement with the operating activities so the three parts of the statement of cash flow operating activities investing activities financing activities the operating activities are basically reconstructing the income statement although it's a little bit different because instead of us taking the income statement and making it from top to bottom on a cash based method which would make sense that would be what we would call the direct method instead of doing that we're using the indirect method which is taking the bottom line on the income statement net income for january which is that 13609 and then backing out the items that are accrual items and the accrual items on the balance sheet we can see them on the balance sheet are the you know the accounts receivable the inventory these are things that we had to deviate from a cash based system and we can use those to kind of back out the accrual component so I won't go into them in detail here but that's that's the general idea and then we get to the you know the cash kind of net income or the net cash provided then we have investing activities so these would include investments in like stocks and bonds as well as the purchase of fixed assets or disposal of fixed assets if we did that as well and then we have the financing activities with half which have to do with if a sole proprietor us investing money in the business drawing money out of the business and and then the opening balance was investing money you know into the business as well and if it was a corporation it would deal with the dividends which are like draws capital uh capital stock issuance and so on and then here's the beginning balance at the beginning of the period and then this is the cash at the end of the period so this cash at the end of the period will tie into hopefully the balance sheet 870375 so and then we have in here we've got the 8520 let me pull out the trusty calculator is there anything because there's an amount in payment to deposit so this is the tricky thing with that payment to deposit 8520 plus this one because that's cash on hand plus 183.75 8703 is to say 8703 so you can kind of think of it as a sub-account of cash although it's really a kind of a reconstruction of the flow which is mainly an income statement the performance activity statement on a cash based system okay if you want to get into that more detail we have courses on statement of cash flow if you can understand the statement of cash flow you really are getting a better understanding of the double entry accounting system itself all right who owes you this account this whole system of reports will basically be there if you're dealing with accounts receivable and you'll recall accounts receivable is one of the deviations that we have to a cash based system so if i look at my flow chart over here that was on the revenue cycle where instead of just waiting till something clears the bank and building our books from the bank feed we have to make an invoice if we invoice something we're doing an accrual thing we're recording revenue before we get the cash because we have to track the accounts receivable so if we have to track the accounts receivable because that's the industry we're in we're going to need that information not simply by the detail here which is breaking out the activity by date but we're also going to need information in terms of by customer and that's going to be these reports so these reports will give me the accounts receivable aging detail this accounts receivable aging summary if i open that one up for example this is going to give us our accounts receivable let's make it as of 033124 and it breaks it out by how past do they are and then the total here by customer 2200 and that's over here 2200 if you don't have accounts receivable because you're doing gig work and you're constructing your books entirely from the bank feeds and you don't have any accrual components then you won't have any accounts receivable and these reports will generally be of no use to you so then you have the collection reports customer balance detail same kind of thing breaking out the thing by customer customer balance summary invoice list invoices are the things that increase accounts receivable invoices and receive payments that's giving you the detail of both the increases and the decreases of accounts receivable invoices increasing receive payments decreasing open invoices again invoices increase accounts receivable so you would think that would add up to the balance of accounts receivable the statement lists the list of statements that we can use to kind of collect on the accounts receivable terms lists meaning the terms that you're going to have net 30 for example on the invoices on when you expect to be paid after you send out an invoice unbilled charges has to do with expenses that you have entered that you want to pull into an invoice but you haven't done it the unbilled time has to deal with time that you've entered that you have not yet invoiced for note that internally we track most of this stuff in what I would call the center so our job as a bookkeeper number one create the financial statements and related reports using the forms here which record transactions forms broken out by cycle customer cycle vendor cycle payroll cycle and communicating with those we do business with including customer vendors and employees with the help and use of the centers on the left hand side sales center expenses center employee or payroll center so in the sales center we can manage our open invoices in here and we can also manage them over in our customers sorting by the open invoices and try to collect on them of course right so that's so that's internally that's where we would be all right let's go back to the reports and continue on and so now we have the sales and customers so these reports mainly have to do with the income statement accounts up top of income so we have income we sell income to customers so the general idea would be on the income statement we usually do not make an account for every customer that we have and we also don't make a separate income account for every item that we sell why because that would create a whole lot of income accounts we usually group them together and say service income versus product income we might have general groups of things that we sell but we're not going to include every line item of things we sell if we have a like a grocery store or retail store right we're just going to say these are the general groups of things that we sell and then we can still get that added detail on the sub ledgers breaking out the income by customer breaking out the income by item however you can only do that if you're putting that information into the system which QuickBooks does with the sales forms of invoices and sales receipts which means you would typically be using a full service accounting system that uses invoices and sales receipts if you want the sub ledgers if you're in a very simple system and you're just using the bank feeds to record the revenue then you're going to be recording with a deposit and you're going to lose the added detail that's going to provide the reports for the customer by income by customer income by item which is fine in some cases right so if so we talked about before if you have gig work or something then you might basically it might make sense then to say this is my amazon income this is my youtube income rather than say it's my income from content creation that you then get from multiple sources or something like that and then just record it as it comes through the bank feeds in part because obviously that's income from youtube is a big category in and of itself if that's like your main business or something number one and number two you're not going to have the sub ledger because you're just going to wait till it clears the bank and record it with a deposit but if you're in if you're entering the sales receipts and stuff then you can you can just put sales of product and you can break out the detail by customer and by vendor because it will be created with the use of the invoices and the sales receipts so let's take a look at a couple of them sales we got customer contact list that's just a contact list which may or may not be useful depending on the industry that you're in some industries you're going to want to keep close contact with your customers other industries you really don't because you might be selling one time items you might be working at a food truck or something where the people buying your stuff don't want to give you all their information they just want you know whatever it is you're selling for food you give me my falafel or whatever so deposit detail is going to give us details about the deposit side of things the estimate and progress invoicing progress invoicing has to do with the job cost system which is a specialty area in and of itself we have a whole nother course or section on progress invoicing if you want to look at that estimate by customer estimates we haven't looked at too much here on the bank feeds because that happens before the invoice typically in like a job cost type of system so we have another course or section on that if you want to look at that more detail income by customer summary let's take a look at that right click open and this is going to give us then our income by customer it also gives the expenses if they bought if they bought like cost a good sold if they bought inventory right because then there's a cost a good sold side of things so here's the customers that we have set up and the income has pulled in it does look like it pulled in some of the income like in here let's take a look at this one and if i go into that amazon income to it is pulling it in even though we used a deposit form so even though we use the deposit form it is giving us more detail with this report let's go back uh let's try it again did it did it do income by customer summary to open that up and so let's do this just for january 013124 run it and so the income is at the 14 274 let's go to the balance to the income statement and the income is at 14274 ties out beautifully and then the cost to good sold there was nothing in the cost to good sold so we actually do have a sub ledger there even though it's pulling in from the deposit forms because in the deposit forms we are adding the customer let's look at the detail and income uh this is the invent no this is inventory so uh this is the inventory valuation detail so i'm not i'm not sure what i put there this in the sales area but this will give support to the inventory number if we're tracking inventory on a perpetual uh inventory method uses the first in first out method we'll take a look at another one of the inventory report shortly inventory valuation detail uh let's take let's take a look at this inventory valuation summary if i open link in a new tab this one also tracking the inventory which will give us the units of inventory which will tie out if we processed everything on a perpetual inventory method to what's on the balance sheet giving more information about the inventory number now it doesn't tie out in our case because we recorded some things to inventory on a periodic inventory system so that report this inventory valuation summary report will only be relevant if you're using a perpetual inventory system tracking not only the dollar amount but units of inventory in the quick book system we talked about when you might want to do that and when you might not want to do that a little bit as we did some of our data input so let's go back on over payment method list methods of payment so cash versus credit card and so on when you get paid physical inventory worksheet can help you to actually count the inventory product service list products and services are what you sell this is just a list of those products and services sales by class detail uh so now we got sales by class if you have class tracking on so we can break out the sales by class sales by class summary sales by customer detail so sales by customers a little bit different than income by customer because it's going to uh what one has to do with the expenses as well and the other does not so let's open this one up so let's do this one just for january so let's go from 010124 to 013124 and run this one let's go all the way to 033124 see what we have here so this one notice this one only has invoices and sales receipts so they're not including the deposits in this one so this one's not going to tie out to our income statement net income or in our income line because if we constructed our income statement from items that uses deposits then this one's not going to work because it only uses the sales forms so this one will only be useful to you if you're doing your income with the sales form let's look at the summary income by customer summary let's take a look at that one and change the range again so we're going to go from 010124 uh hold on 010124 to 033124 run it so this one gives us a little bit more detail uh but i think this is still going to be 3000 i think this is still reliant on invoices and sales receipts and rather than deposit forms in any case sale by customer type sales by product or service so this would be the sales by the things that we sell let's take a look at the summary on this one and so this would be our profit and loss or income broken out by what we sell service items inventory items 010124 033124 tab run it now i believe this one also is going to be tied out to the use of the uh the invoices and the sales receipts so i don't think it's going to include the bank deposits if we recorded income with the bank deposits i don't think it can at all because the bank deposits don't have inventory items on them they don't use the items or service items so if we used all items if we were using invoices and sales receipts this number then should tie out to the income statement income number uh but if we're using deposits then it's not going to be able to do that so we lose some of that detail time activity by customer detail tracking time information we didn't really deal with that in our data input transaction list by customer so it's going to give us our list of transactions by customer transaction looks by tags tags is a whole nother course or section that we have what you owe now this one all these reports you would think would be tying into the balance sheet account of accounts payable and would only be useful if you are tracking accounts payable which for many small businesses you might not be doing because the payable side or the money outside the expense side is often the easiest thing to tie the bank feeds in with for small businesses because you can automate the outflow so you might not be dealing with the accounts payable if you are tracking accounts payable then similar to the accounts receivable needing a sub ledger breaking out by customer the accounts payable needs a sub ledger breaking out by vendor who it is that you owe also similarly if we were going internally we could track by vendor here and we can sort you know the vendors that we owe money to this way as well so I'm going to close this out we didn't so 1099s we won't get into that that's for reporting purposes by vendors so you can you can apply the vendors that you need to issue a 1099 for if they're contractors account payable detail lists similar to the accounts receivable list accounts receivable aging accounts payable aging summary bill payment bills are the things that increase the accounts payable bills and applied payments so this will have the increases and decreases to accounts payable unpaid bills if they're unpaid you would think that's the creation or should add up to what's in accounts payable because the bills are what create the accounts payable vendor balance detail this will give you the detail balance of the vendors so expenses and vendors this you would think gives us more information about the income statement expense line items so like with the income line items being summarized and having the capacity to break them out by customer or item with the expenses the expenses are broken out by category and you would think that maybe we can have a subsidiary report breaking out the expenses by vendor who we paid right so we have in here 1099s again check detail expenses by vendor so that's the one that you they could break it out more detail by vendor purchase order we didn't do purchase orders because that would be dealing with inventory we might have entered one purchase order detail these are things that are not constructing the financial statements but are internal forms purchase order class detail purchase order product purchase by vendor transaction list by vendor and then the vendor contact list sales tax most of these you're probably would find in the sales tax widget that we talked about over here if you're dealing with sales tax so we kind of touched in on those reports and how you would deal with sales tax in a prior section of our bank feeds and then employee e-reports if you're dealing with payroll you would have employee e-reports here and payroll reports and there would be a whole bunch of them because payroll is a complex thing but if you have an external provider doing payroll or you are not uh don't have payroll then of course uh you won't have as many reports internally within QuickBooks related to it and then you have the four might account reports so these are ones that often have debits and credits and some of them are repetitive of the major financial statement report so you have your account list you've got your balance sheet so this is just a repetitive one we already saw that one in the financial reports same with this one uh class uh lists so this is going to give the list of classes because we turned on class tracking the general ledger is sim is basically similar to the transaction detail report that we get into every time we drill down on a number and it gives us the detailed information by date it used to be that we couldn't do that and therefore we needed to have a general ledger report but these days if you can give this information the whole QuickBooks file to your accountant or tax preparer they may not need the general ledger as much because they can drill down on the balance sheet or trial balance the journal report this is actually a great report to look at if you want to learn the accounting system because it gives the transaction report but it also gives the full journal entry in terms of debits and credits for each type of transaction so you can go through here and you can see the actual transaction of these forms in terms of debits and credits so if you want to learn debits and credits that's a great report it also just gives you the detail of what is going on profit and loss we saw that before profit and loss by tag we saw that before profit loss another one we've got the recent transactions so you can take a look at those to see what has happened recently which might be good for supervisors and whatnot reconciliation reports as we saw with the bank reconciliation this will take you to the reconciliation's tab and here right that's going to take you here to reconciliation's and then you can take a look at the history of the reconciliation's let's go back to the reports and scroll all the way down so now we've got reconciliation recurring recurring template list for recurring transactions another statement of cash flows we saw that before transaction detail by account which is similar to the general ledger and journal given you the detail by account transaction list by date this one's a little bit different because it gives you all of your transactions kind of like that journal report but it breaks it out by date rather than by account as opposed to the general ledger which breaks it out by account and it's a little bit more condensed than the journal report because it's not given you the debits and credits and multiple line items it's only given you one line item which can possibly be enough if there's only two accounts affected in a transaction so that could be useful you could use that for your billing too but i won't go into that in detail transaction list with splits and then your trial balance which i think is a useful report even though it has debits and credits for the same reasons that we've talked about as we've gone it's basically the balance sheet on top of the income statement so that's just a summary of some of these reports that you could see they're basically being constructed in conjunction or as we are creating the balance sheet in the income statement so as we're verifying those major financial statement reports we can then kind of get an idea of all the other reports as subordinate generally to one or multiple line items providing more detail and then get a better idea of when those subordinate reports would be useful then you'd want to get an idea of which reports might be useful to provide to clients for external reporting which reports would be useful for internal purposes and so on