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QuickBooks: How To Set Up A Budget and View Reports

By Edited Mar 16, 2016 0 0

Three Tips on How To Arrive at Budget Numbers

Most budget amounts are calculated by three methods:

1. Based on actual amounts -  for example, your office monthly rent.

2.  Based on previous period's amount with an adjustment - for example,  you sales for last year were $20K and your budget for this year is last year plus 10%.

3.  Based on knowledge of future events - for example, you will be hiring a manager  in mid-year, so you know your payroll expense will increase in the month of hire.

Creating a Budget In QuickBooks

1.  Open up your Chart of Accounts (COA) in QuickBooks

a.  List pull-down menu

b.  Choose Chart of Accounts

2.  In the COA, notice the "type" of each account.  For the accounts from type "bank" through type "equity," these accounts are your Balance Sheet accounts.  For the account types "income, expense, other income and other expense," these are your Profit & Loss (or Income Statement) accounts.   We are going to create a budget for the Profit & Loss accounts.  Close the COA window.

3.   Open the budget module and enter a budget

a.  Company pull-down menu

b.  Choose Planning & Budgeting, then choose Set Up Budgets

c.  Click the up/down arrows to choose the correct year

d.  Choose the radio button next to "Profit and Loss ..." Click Next.

e.  Choose the radio button next to "No additional criteria." Click Next.

f.  Choose the radio button next to "Create budget from scratch."  Click Finish

g.  A Set Up Budgets window will appear.

h.  You must enter a number for each account for each month.  You cannot enter a number in the "Annual" column.

i.  To copy the same number across several months, enter a number in January, for example, then click the Copy Across button at the bottom left of the windwo.

j.  To save your work without closing the Set Up Budgets window, click Save.

k.  To save your work and exit the Set Up Budgets window, click OK.

Reviewing and Reporting Your Budget

1.  To review a report that shows the budget you entered

a.  Reports pull-down menu, choose Budgets, then Budget Overiew.  A Budget Report window appears.

b.  Click the arrow next to the only field in the window and choose the correct year/budget (the one you just created).  Click Next.

c.  The next window asks you to "Select a report layout for the budget report," but there is only one option.  Click Next, then click Finish.

d.  You'll now see a "Profit & Loss Budget Overview" report.  More than likely you'll need modify the report.

e.  To view your budget by month, click the Modify tab in the window of the report.  In the Modify window change the "from" and "to" dates to caputure the year you want to view.  Still in the Modify window, near the middle under "Columns and Rows," make sure MONTH is in the "Display columns by" field.   Click OK.

f.  To view your budget by year, click the Modify tab in the window of the report.  In the Modify window change the "from" and "to" dates to caputure the year you want to view.  Still in the Modify window, near the middle under "Columns and Rows," make sure YEAR is in the "Display columns by" field.   Click OK.

2.  To view your actual income and expenses against the budget you entered

a.  Reports pull-down menu, choose Budgets, then Budget vs Actusl.  A Budget Report window appears.

b.  Click the arrow next to the only field in the window and choose the correct year/budget (the one you just created).  Click Next.

c.  The next window asks you to "Select a report layout for the budget report," but there is only one option.  Click Next, then click Finish.

d.  You'll now see a "Profit & Loss Budget vs. Actual" report.  More than likely you'll need modify the report.

e.  To view your budget by month, click the Modify tab in the window of the report.  In the Modify window change the "from" and "to" dates to caputure the year you want to view.  Still in the Modify window, near the middle under "Columns and Rows," make sure MONTH is in the "Display columns by" field.   Click OK.

f.  To view your budget by year, click the Modify tab in the window of the report.  In the Modify window change the "from" and "to" dates to caputure the year you want to view.  Still in the Modify window, near the middle under "Columns and Rows," make sure YEAR is in the "Display columns by" field.   Click OK.

e.  Also in the Modify window, you can check and uncheck "$ Difference" and "% of Budget" to have the columns display or not display in your report.

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