TheQuickBooks Budgets helps you to know how well your company is functioning. It lets you compare the actual revenues and the expenses to the amount your company has budgeted. QuickBooks has the capability to do budgets for all the version. It is a great new alternative of the accounting software, Tally.
It includes the details about the company’s cash flow, financial situation and expenses. The budgeting process may vary depending on the size of the company, that is often done later in the year comprising of the input from the company which is managed by the head of the finance. Since the budgets are set for the company’s fiscal year most budgets are said to be static.
A budget is said to be a detailed financial outline of what the business things may happen financially over a given period of time. The budget report gives your companies budgeted with monthly expenses and revenues.
Budget vs. actual report
The budget report and actual report lets you in comparing your company’s actual revenues and expenses to the budgeted amounts of your company. It provides you with the variation so that you know whether you are over or under budget in your company.
Profit and loss budget Performance
The Performance of Profit and loss budget Report is same as the budget report and actual report, except in the case that actual expenses and revenues are compared to the budgeted amounts for the particular current month and current year.
Budget vs Actual Graph
TheBudget vs Actual Graph provides you with the graphical image of your budget-to-actual revenue and variation in the expenses.
How to create new a budget In QuickBooks Desktop
Follow the below steps that are listed to create a new budget in QuickBooks Desktop
Step 1: Creating Budget
QuickBooks displays a Create New Budget Window if you are creating a budget for the first time. If you have already set a budget, a window will appear and you should click the Create New Budget Window to get a Create New Budget Window.
Step 2: Select the time period
Establish the fiscal year that you are budgeting. Type the fiscal year in the text box. For example, if you are budgeting for 2018, you can use that button to change the year to 2018.
Step 3: Choose whether to create a profit and loss or balance sheet budget
In order to select the type of budget, Click the profit and loss radio button and Select Next and proceed step 4. To create a Balance Sheet budget, click the Balance Sheet radio button and give finish and move to step 5.
A different approach is used for profit and loss budget and balance sheet budget. In case of profit and loss budget the number of expenses or revenue expected for the month. And for balance sheet budget you will budget the ending account balance which is the balance expected for the liabilities, assets or owner’s equity account at the end of the month.
Step 4: Mention the additional budgeting instructions and criteria
If you have chosen to create profit and loss budget in the above step, select the Customer job radio button to extend your budget. Select the class radio button to include classes.
Step 5: Choose whether to start from scratch or previous data
Select the create button from scratch radio button. To create a budget based on actual data, select the create budget from the previousyear’s actual data radio button.
Step 6: Click Finish
QuickBooks desktop will display the Set Up budgets window I trust this article would help you to use the Budgeting in QuickBooks Desktop, since budgeting financial background of any company for its proper functioning. If you are finding any help QuickBooks support phone number +1-844-893-0111 and QuickBooks support helpline +1-800-301-4813.