Managing a detailed financial description of your business becomes handy with applications like QuickBooks. Keeping a record of financial statements like profit and loss statement, balance sheet or statement of cash flows are necessary to maintain good health of your business and help you figure out issues and opportunities How to Create a Statement in QuickBooks.
You can use these statements for the year-end closing, while opening a business account or while applying for a business credit card or any loan. To know more about the types of business statements and how to create them in QuickBooks. Keep reading…
How to Create Financial Statements in QuickBooks
You can create customized reports as per your requirement in How to Create a Statement in QuickBooks to help run your business smoothly. Apart from the above-mentioned three basic statements you can customize several reports such as reports related to the product, vendor, employees, bank, or customers. It is flexible to use and share statements in QuickBooks. View or send the statement to yourself via email or to anyone else and choose it export for later use. You can schedule financial reporting, can automatically receive, or send updated financial statements on a timely basis.
Let us Discuss More the three basic financial Statements you can Create in QuickBooks
The Profit and Loss Statement
Also known as an income statement, a profit and loss statement is the summary of a business’s financial achievements periodically. This crucial document has all the information regarding your business expenses and revenues. The report allows reviewing your performance. It helps in deciding on cutting down your expenses or increasing sales to make your business more profitable. It is recommended to review the statement more than once a year and at the time of closing before filing your taxes.
How to create a profit & loss statement
- Go to QuickBooks Dashboard, select Reports displaying at your left.From the Report section, either go to Recommended or All Reports option.
- Further, move to Business Overview.
- Select Profit & Loss.
- Select the Report name
- Either way, click on Run to open it.
- Here you can customize your report.
- You can change the date and time.
- Once you are done changing the date of the report, click Run Report to view new reports.
- This is the real-time place from where you can send the reports to anyone or just choose to export them as a file.
This sheet lets you see your assets, liabilities, and equity of your business empire. Liability is something you owe to someone and an asset is what you possess, while equity is a value that comes from subtracting liabilities out of assets.
Read More : How To Set up a New Bank Account in QuickBooks
A balance sheet is the health card of your business. It also helps you at the time of applying for any loan.
- Again, to view your balance sheet, you can either go to the Recommended or All Reports tab.
- From the All-Reports tab, jump to Business Overview.
- Proceed to choose the Balance Sheet.
- You can customize your Balance Sheet as well.
The Cash Flow Statement
The cash flow statement lets you view the in and outflow of cash of your business. The statement is important as it shows the actual cash position of your business. It lets you know where you stand in terms of cash. In short, it shows the liquidity of your company. To customize this report from time to time, define your accounting method in QuickBooks. It will help you handle the cash flow better.
View Cash Flow Statement in QuickBooks-
- Go to Reports.
- Type in the search box, Statement of cash flows.
- Click to open the report.
- Here too you can customize the report.
- Once done, click Run report.
Apart from the basic three statements, QuickBooks lets you view, create, and edit following other reports as well-
- General Ledger
- Just like a Ledger book, this virtual General Ledger lets you record, view, and edit the beginning balance, transactions done and the total amount for each account in the chart of your accounts.
- Vendor Reports in QuickBooks-
- A report related to all vendor-related expenses and payables or receivables.
- Item Reports- This one is to manage your inventory.
● Sales Report.
- Banking Reports-
- Keep a record of all your bank accounts, credit card statements at one place. It will make it easy to manage money matters of your bank accounts.
● Employee or Payroll Reports.
● List Reports for the customer, product, or any other list.
● Tax and Accountant Reports for taxation purposes.
● Budgeting Reports-
To keep a track of your budget with the help of infographics and text.
This is how you can create several kinds of statements in QuickBooks. The reporting section lets you create, edit, view, and customize your reports as per requirement. you can visit our website: www.bigxperts.com
How to manage the Cash Flow of my business in QuickBooks?
You can create a Cash Flow Statement to keep a check on the cash flow of your business.
Can I keep a record of Vendor Payments?
Yes, you can. Prepare a Vendor Report for the same.
Can I customize all kinds of reports?
Yes, you can.
How to customize?
Go to the reports section and customize your report as per requirement.
What if I forget to mark an entry in one of my reports?
You can edit your report and mark your missing entry.