 QuickBooks Online Comparative Profit and Loss P and L Income Statement Get ready to start moving on up with QuickBooks Online We're going to be using the free QuickBooks Online Test Drive Searching in our online search engine for QuickBooks Online Test Drive Selecting the item that has Intuit.com and the URL Intuit being the owner of QuickBooks 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 We're going to be using the United States version of the software and verify that we're not a robot Zooming in by holding down control up on the scroll wheel We're currently at 125% on the zoom Noting that in the cog dropdown we're in the account view As opposed to the business view We'll try to toggle back and forth between the two views So you can see where stuff is located in each of them Right click it on the tab up top to duplicate it We do this every time to put our reports in the duplicated tabs Right click in the tab again to duplicate it again Tab to the middle as the tab to the right is thinking Reports on the left and we're going to be opening up the major balance sheet report As that's thinking tab to the right reports on the left This time the P to the L the profit and the loss The point of our focus in this presentation Closing up the hamburger otherwise known as the hamburger And then changing the range from 010122 tab 123122 tab run it to refresh it tab to the left Close up the hamburger scroll up Rangings changing 010122 tab 123122 tab run it to refresh it That's what we do every time that's our setup process We've been focusing over here on the income statement And now we want to do some variance on the income statement Note that we're not going to go through all the items up top to format the income statement Because many of these formatting options are similar to what we saw in the balance sheet And will be applicable to many different reports What we do want to look at are the different variance of the income statement Keeping in mind that you might think about providing these variance to a client For example or possibly a supervisor periodically Possibly at the end of the month or the end of the quarter or the end of the year So the standard profit and loss would be your first go to profit and loss You could think about a summary profit and loss In a similar fashion to the summary balance sheet by basically collapsing the line items So I could collapse all the line items That becomes a little almost too simple in some cases But still we have a multiple step income statement here So you could try that as your intro kind of report Because remember if you're presenting in particular Oftentimes you want to start simple Draw people in and then expand Add more detail at that point in time And then the next thing we might want to look at are comparative type of reports Which we'll see here Note that as we start getting into these comparative reports Just as we saw on the balance sheet We can get a whole lot of different variations Meaning I can compare different two months I can compare three months I can compare the whole quarter in months I can compare quarter to quarter I can have four quarters in a year I can compare the current data to the prior year data So there's almost an infinite number of reports Once we start mixing and matching with different periods So you want to think about which group of reports you want to be putting together And the list could get quite long Just looking at the balance sheet and income statement reports As we're doing now And then we can tack on other reports Such as sales reports and whatnot In addition to that Which we'll see later So the first kind of comparative reports we can do Is we can hit the drop down here And we can break out the range Which is a year right now by days That would be quite long If you had a whole year Weeks, months is more common Quarters is going to be quite common If you have a whole years with the data Years or you can break it out by customer Vendors, employees, products and services So let's start with the quarters If we break this one out by quarter and run it Now we didn't have any activity in the first couple quarters But you can see the idea here Now we've got the activity for the last couple quarters And the total Now note it gives you a total column Because the income statement is a timing statement Has a beginning and an end We're seeing how far we went in a particular time This is different than the balance sheet you'll recall Let's just check that out for references' sake Back to the balance sheet And put this one on quarters Run it There's no total column Because the balance sheet is as of a point in time So whenever you're applying these tools to any report You want to think, am I using a report That is reporting as of a point in time Or has a time frame Like the income statement Back to the income statement Now we could of course do that for different time frames The other common one would be months So if we broke this out by month Then we've got our month by month comparison 12 months gets quite extensive And then you could break it out basically by customers So that's a little bit less usual So now you've got your columns up top Breaking out the information by customer So it could be a useful report And then you could do the same thing by vendor You would think this would be most applicable To the bottom half of the report Your expenses down here And then you've got your breaking out by employees Which is not the most common thing to do You would think on the income statement But there it is Less than you could go to the days Now if you went to the days It's likely that you have a smaller range up top So if I went to the days for example Say I would run it from It had to think a lot right there Because I put it on days But probably we would want to run that maybe for a month From 12.01.2.2 to 12.31.2.2 We could run it Days might make a little bit more sense in that context We can run it by weeks Which might make more sense Again if you had just a month's worth of data And then we had the month So let's bring it back to the total That's one way you can do it And I'm going to then go from 01.01.2.2 to 12.31.2.2 You can also do multiple years that way I could expand the range here For multiple years Like let's say this was 2.0 And then I've got a range Spanning multiple years And I can break it out now by years And note when I do that That means I can put more than two years And I'm going to have the Oldest year up front Is how they format it Now if I just want to compare two things Comparing just two timeframes Is nice because then Instead of getting the total over here I can take the difference between the two And it's important on the income statement To note that because the total is nice Because that means you can have Like four quarters and then the year to date numbers On one report And then having two columns Is nice because instead of taking The total in that case You might take the difference to see The performance you had in one Quarter for example versus another So now let's take a look at that example We'll have to use a different method So I'm going to go back to the totals only Back to the starting point Change the range up here back to 2022 to 2022 That's our starting point And now I'm going to use these Items To do a side by side comparison So let's start it out with just like December and then I want to compare November and December So I could then take the Total of just December which is 0122 to 123122 Run it Now I've got one month's worth of data And then I'm going to go up top And say let's take the prior period Which will be November Notice you've got to be a little careful Because you want to make sure That you're comparing month to month And the months are not even in days So it might try to compare Like 30 days to 30 days As opposed to a month that has 31 days Versus 30 days for example Run it and I'm going to run it again Because it didn't click And so now we've got December The most current period And then the prior period November Next to it and then of course The natural thing to do here We could imagine having a total That would say this is how much I earned In December and November November and December But that's not what we're looking for here We're looking for the difference this time So now I'm going to say what's the difference In dollar amount Run it again because it didn't go And there it is So now we've got our difference column Which is quite common and then we might want Our percentage change percentage change run it And run it again That's our horizontal analysis Similar to what we saw on the balance sheet Horizontal analysis will basically be taking Let's just take a line item here Like an income So here's my income 3,819.8 Minus the 4,526.72 A difference of 706.92 Divided by the prior period November 4,526.72 Moving the decimal two places over 15.62 On the percent Change on the right hand side So the percent change is useful Anytime you're doing a measurement Type of thing and we see this in Jobs anytime you're working a job If they're trying to measure your performance They're going to have to use ratios often times To compare your performance As we can see in athletic jobs When we're trying to compare who's the best At whatever we're saying the best at Best hitter or whatever You've got to take averages in order to do that Because they have different at bats and what not And so on and so forth So then We can also do the same method I can hit the drop down And say what if I want to compare quarter To quarter so I can take this And say the last quarter Well actually not here let's do it up here The last quarter is 10.01.22 And so I'm going to say that's this Quarter I want to take it to the previous Compared to the previous period So I've got October through December The last quarter October November December And then it takes the previous period So you can give that quarter You know the quarter by quarter Change on that which can be nice And so and then you can You know you can do a year by year change In the same fashion You can say I'm going to go from 0.01.22 And then run it And now I've got Nothing's in the prior year But if there were you'd have the year By year change So you can see there's a whole lot Of variants of reports That we can get once we do these comparative type Reports we can also compare To the prior year Any current period to the prior year So for example Let's take us back to the beginning So we're back at the starting point Let's go from 0.01.22 to 12.31.22 Which I was already at And then hit the drop down and stop this Nonsense Stop that nonsense Back to normal And now we're going to say well let's try to compare Just like the last month To the same month The prior period In the prior year I mean So let's go from 0.01.22 That's the current month Run it So now I've got one month of data And I want to compare it to last year's December number So now I'm going to go down And say I want to look at it Compared to the previous The previous year So I'm going to pick up the previous year now And just run that Run it again December for 2022 Compared to December of 2021 That's quite common Because now we want to see This month in the current year Because we might have a seasonal type of business Compared to the same month in the prior year So that's kind of a common comparison Then I can do of course the dollar change And the percent change there And run it With the dollar change and the percentage change And there we have it There's no data in the prior year Imagine what it would look like Because we've got the difference And the change and so on We can do the same thing comparing The current quarter to the prior quarter I could say I'm going to say the quarter data Is from 10.01.22 To 12.31.22 Run it And then it'll take the previous year So there's the prior year on the prior quarter And then If we go back up top We've got a couple other comparative type reports here The year to date So and this will give you A comparison to the current year to date So for example Let's take a look at December here And say we've got 12.01.22 To 12.31.22 So that's one month of data And I want to see that month Compared to the entire year To date Because it's a timing report So let's just check it out And we'll explain it then We want to take this Compare it to the year to date And then I can take a percent Let's go ahead and click off the percent year to date And run that report Run that report So now we've got December Compared to the year to date numbers So December is part of the entire year Because we're going to be thinking Performance in terms of a year December as part of that year And then you've got your percentage To say for example let's take a look at the total down here And we say total materials The December materials Are at 135.1.5 Divided by the total Year to date numbers Divided by the 4.7 3.6.4.7 And that gives us 28% So December makes up 28% Of the year to date numbers As of this time You can also compare to the prior year to date numbers So if I take that same month Hit the drop down And we want to compare to the previous Year to date numbers We can do that And so run it And so now I've got the prior period There was nothing in the prior period Because we don't have any data in it But I can compare the current month Which isn't part of 2021 numbers It's part of 2022 numbers So it doesn't really make sense to say it's a percent of That the prior year to date number But you can compare it in a similar fashion Here's December And here's last year's year to date numbers On the right hand side So those aren't quite as common Of the comparisons But those can be useful comparisons As well So the bottom line for the comparative reports You've got your comparative of multiple periods On the income statement Which can be nice because then they can add up to the total On the right hand side Common reports would be multiple months Multiple quarters Multiple years And then you can take a difference comparison Which means you only have two periods Which would look something like this We can go from December again To December And then take the previous period Boom boom And uncheck that And that's your common type of comparative Kind of report And you can imagine multiple other comparative reports You can do quarter to quarter Half year to half year To last year, this quarter to last quarter And so on and so forth Okay, so then we also have the Vertical analysis that we'll take a look at In future presentations If I was to then give this to somebody For external reporting purposes Then I would typically make the Bracketed negative numbers Remove the pennies Negative numbers as red numbers And then on the header and footer I might change the name from a Profit and loss to A comparative Income statement And that might give you a little bit of a touch A little bit of a differentiation To other bookkeepers, for example I'm going to get rid of the date, time, report, basis I'll keep the alignment and run it And there you have it And then looks fancy And then we can go up top And we could We can save the customization Let's do that So that I don't have to do that every time I'm going to group these reports If I go to the first tab And then refresh it And scroll on down to the reports Reports We've got then in the reports Our customize There it is right there So there's the process In future presentations we'll then look at Kind of like the vertical analysis Type of reports which is another Variant that's quite common Report to be putting together So just to note where we've been If I go to the cog dropdown And switch to the business view We've just basically been working under the reports So that's under the business view Get things done That's our home page Reports are on business overview And then the reports, here's the standard Here's the customized