 QuickBooks Desktop 2023. Trial Balance. Let's do it within 2-its. QuickBooks Desktop 2023. 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. QuickBooks Desktop Sample. Raw Castle Construction Practice. File provided by QuickBooks. Going through the setup process we do every time. Maximizing the home page to the gray area view dropdown. Noting we got the hide icon bar and open windows list checked off. Open windows open on the left. Going to the reports dropdown company and financial P&L. Ranging to the change in 0101. That's not a one. 2-4-12-31-2-4. Genuary to December. Customize it so we can font the number change to 12. Okay. Yes. Okay. Reports dropdown again. Company and financial. This time the balance sheet. Going to put the customize and make that to this fiscal year. This fiscal year on the range and changing and fonts and numbers changing it to 12. Okay. Yes. Okay. So that's the setup process we do every time. Noting that every other report that we look at just about is going to give us some more detail about these main two financial statement reports. That being the balance sheet, the income statement. Otherwise known as the P&L profit and loss. This time we're looking at a trial balance report, which is a little bit different because it's basically a recap of all the accounts on the balance sheet and the income statement. But this time formatted so that we don't have all the subtotals and anything. So this could be a great report once we get used to it because we can then open it instead of balance sheet and profit and loss when we're doing our data input, making our toggling a little bit faster, making kind of our checking a little bit easier. Let's see what I mean. I'll show you what I mean. Hold on a second. We're going to go to the reports drop down accounting and taxes. You can open the trustee trial balance here, or we can do it up top by going to the report center, maximizing it again because it got unmaximized. Stupid thing. Why does it do that? Accounting taxes down here, there's the trial balance. Let's open it up. Run it. Run it. Gen I. I'm going to say this goes from 010124 to 123124. And let's change the size of this thing up with the fonts and the numbers. Bring it on up to 12. Okay. Yes. Okay. There we have it. So notice some people are kind of intimidated by it if we don't have a firm grasp of the debits and credits. But note that even if you don't know debits and credits are not as familiar with them rather than you'd rather seize things in terms of the financial statements, increases and decreases, you could still kind of see what's going on here because like the credit balance accounts are still going up in the credit direction, right? They're going to have a credit balance. So you could still see this in terms of just all the accounts and the balances that they have within them. And basically this is the balance sheet on top of the income statement. So you can see it goes from the checking account so on assets and assets. And then we've got the liabilities down here. Then we've got the equity and then we've got the income accounts. And then we've got the expense accounts. That's going to be the format of the balance sheet. So we've got the balance sheet accounts on top of the income statement or profit and loss income and expense accounts. It's formatted in the same way as you would expect to see if you go to the lists drop down and the chart of accounts, the chart of accounts being the underlying foundational things we put in place. And we every time add an account put a type to it asset liability equity income or expense further broken down into cash for the assets accounts receivable other current assets and so on and so forth. So every time we enter a transaction in like the home page moving to the home page, we usually do so with a data input form for every day to day transaction such as enter the bill pay the bill enter an invoice receive payment deposit pay the payroll and so on and so forth. Those forms then have an impact according to the double entry accounting system on at least two accounts on the balance sheet and the income statement. So we can we can also think of that in terms of a journal entry in terms of debits and credits. So every time we enter a form, we've been going through the practice as we did when we looked at all these forms to then go to the what you want to do is look at a form like an invoice and say what's going to be the impact on the balance sheet and the income statement and then enter the form and then check the impact by going to the balance sheet and the income statement and looking at the impact that it had on it. Now you can make that process easier by saying I'm going to just go to the trial balance and have that open as I do the data input instead of the balance sheet and the income statement because once you can kind of visualize the accounts and the ordering of the accounts balance sheet on top of the income statement then I would like to go to one form which is a lot shorter of a form given its its balance sheet and income statement on top of each other where I can basically check and drill down here directly. So in other words if I was to look at that invoice on the balance sheet I'd have to go to the balance sheet and then search for the accounts receivable for example which is right here but notice it's a little bit harder to get there because I've got I've got these subtotals and so on subtotal here subtotal here and then a sub calculation here there's the accounts receivable and then the other side would be on the profit and loss on the income account but again it could you know got these subtotals on the income account so if I had to dig around for it it could be a little bit harder to to see or I could just go to the trial balance and say well I can find the accounts receivable right there instead of toggling to another report I can then just scroll down to where the income statement starts because it's in order assets liabilities income or equity and then the income accounts so they're down here on the income accounts right here and then I can go into basically the income accounts so it could be quite useful in practice to to use the trial balance as a as a tool to go back and forth as you're doing the data input you could still drill down on these accounts and get that transaction by account ledger and then you can drill down on it and get back to the source document so closing this back out closing this back out it also gives you a feel of course for the debits and credits what the normal balances are so another use that you might have for it would be let me try to see things in terms of a balance sheet and income statement which is in terms of pluses and minuses and try to get an idea of the subcalculations that are being used here and then see if I can convert my thinking to the trial balance in terms of debits and credits you don't have to do this in order to use the trial balance to double check that transactions are impacting two accounts you could still use it that way but you might want to then go back and forth and try to see you know the the credits and how the credit balances are increasing and decreasing as you enter forms in a debit and credit format and how the total of the debits and credits will tie out at the bottom line this is also a report that if you're doing more complex bookkeeping and and at the end of the year when you have to do taxes or you have to do you have to make make financial statements more complex financial statements then when you do your taxes typically a small business they might just need an income statement to fill out a schedule c for sole proprietorship for example but it's more it's it's you have the double entry accounting system as a double check if if you have a if you use a full accounting system to do your taxes not just like trying to put together an income statement in and of itself because then you're losing the double entry accounting system so because you're doing this in QuickBooks if you then provided someone just the profit and loss in other words you still have the added benefit of you created the profit and loss using the double entry accounting system but if you do some other taxes like a corporation tax return or possibly an LLC or partnership they might need you know the balance sheet as well just to do the taxes oftentimes bookkeepers will an accountants and tax professionals will then export the trial balance and then make any tax adjustments and so on in a debit and credit format adjusting entries and tax adjusting entries into the trial balance so it's used in that format as well as we go forward we will then in our practice problem will be opening up the balance sheet and the income statement but sometimes i'm going to start to try to just look at the trial balance as we double check the data input when we're entering all the data in our practice problems so we'll we'll hopefully get a feel for the trial balance and how it can it could work pretty easily as we do the data input