MBE QuickBooks Tips
BY AUTUMN ELLIOTT — BOOKKEEPER
Budgets are a great way to keep your finances on track and help you prepare for coming years.
Different ways companies use budgets:
- Tracking a specific job; making sure your estimate is staying on track
- As a red flag; are your profits as you expected or anticipated?
Creating a Budget in QuickBooks Desktop
With your company file open in QuickBooks,
Go to Company tab > Planning and Budgeting > Set up budget
Create New Budget
Select the year for the budget and if it will be a Profit and Loss or a Balance sheet > Next
Now choose if you want the budget by Class, Job, or Chart of Accounts (neither) > Next
Now choose to create budget from scratch or use a previous budget > Next/Finish
Now enter your budgeted amounts in the correct fields.
You have now created a budget.
Note: If you are creating this budget by Class or Job, you will need to make sure when entering in your expense, they are coded to the correct class/job, or your actual data will not appear in the comparative report.
Under the Reports tab > Budgets > Budget vs Actual
Choose your budget > Next
Choose to run the report by Class, Month, or Class by Month > Next
(Class report is Year to date)
Modify Report > Filters > Class (now choose your class) > OK
If Budget changes are needed, you may edit your budget at any time, and will not need to create a new one
Creating a Budget in QuickBooks Online
Budgets in QuickBooks Online can be created by Class, Location, or Customer; but not by 2 or all 3. You must have Quickbooks Online Plus subscription.
In your QuickBooks Online Plus company
Gear Icon > Tools > Budgeting
In the top-right corner, click Add Budget.
Enter the required information:
- Budget Name
- Budget Fiscal Year
- Interval: Monthly, Quarterly, or Annual
- Pre-Fill Data: select no or from prior years
- Subdivide by, select:
- Don’t Subdivide
- Location (may also be called Business, Department, Division, Property, Store,
- Customer (may also be called Client, Donor, Guest, Member, Patient, Tenant)
If subdivided a new field will appear where can select All or specific Locations, Classes, or Customers > Next
At the upper left select the category (location, Class, or Customer) then enter the budget amounts. Click Save at the lower right before moving on to next category budget amount.
Click Save and Close once you have entered budget amounts for all subdivided categories.
Budget Overview: a summary of the budgeted amounts for the specified budget
Budget Vs Actual: shows a summary of the budgeted amounts, the actual amounts, their variances and their variance percentages
To print the report:
- In the navigation bar, click Reports.
- Select Budget Overview in the Jump to Report field.
- Note: You will only see this report if you have a budget created.
- If you have more than one budget, select the budget to print from the Budget drop-down list.
- (Optional) Make additional customization’s to the budget report.
- Click Run Report.
- Click Print.
- From the budget report, click Customize.
- In the Department, Class, or Customer field, select a different department, class, or customer.
- Click Run Report.