Are you also looking for creating and customizing an income statement from your QuickBooks account according to your business needs?
Do you want to save print and send the income statement after creating it from your QuickBooks account?
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In QuickBooks, you can easily create financial statements and one of them is the income statement. The income statement is the one that every user creates more frequently.
It is essential to know how to create a QuickBooks income statement to get to know about all your earnings and expenses. It is a statement that is mostly asked via accountants so that they can do their work according to that statement.
In QuickBooks, if your accountant asked for an income statement, then you have to open the Profit and Loss statement. As the Profit and Loss statement is also referred to as an income statement. This statement includes loan officers, accountants, earnings, and expenses related to your business.
In this article, you get to know how you can easily create an income statement into your QuickBooks account.
Steps to Create a QuickBooks Income Statement
There are five steps that help you to create an income statement into your QuickBooks account. Here all the five steps are explained on the basis of the QuickBooks versions you are using. Such as QuickBooks Online accountant, QuickBooks Online, QuickBooks Desktop (Pro, Premier, Enterprise). The steps are as follows:
Step 1: You have to Find the Income Statement in the QuickBooks Account
For locating the income statement in the QuickBooks account, you must know about the version of QuickBooks in which you have to locate it. The location of the income statement is very from version to version.
QuickBooks Online Accountant
In this, you can find the income statement as the profit and loss statement. To search you have to click on the search bar that is at the top right corner of the QuickBooks screen. Then you have to type the profit and loss in the search bar. While typing you get the results shown on your screen; from there choose the profit and loss statement option to open it. Now you have to choose a format according to you. After selecting the format, QuickBooks will automatically create your report in that format. Now you are reporting for the income statement as the profit and loss statement is created.
In this, you have to click on the report Menu option from the left navigation bar. Now scroll down from the options and select the profit and loss options. You can also click on the search bar and type profit and loss in the report screen. Then from available options, you have to choose the profit and loss of action to open it. Before opening, it asks you for the format in which you want to open the statement so choose the format accordingly.
QuickBooks Desktop Pro, Premier, and Enterprise
In these versions of QuickBooks desktop, there are two different types of ways that you can use to find your income statement. These two ways are as follows:
- In QuickBooks desktop, click on the insights tab that is at the top of the home screen.
- Now if you select to display the profit and loss statement on this display.
- Then you are able to see it on your dashboard.
- It is easy to customize your report using the dashboard and you can also view the information in the form of a graph.
- To make a traditional income statement in QuickBooks.
- Click on the Reports tab from the top of the home screen.
- From the options displayed to you click on the Company and Financial option.
- Now select the Profit and Loss format that you want to use for your statement.
Step 2: Select Your Income Statement Report Format
In QuickBooks, there are many formats of the report that are available for you. But how you came to know about that which format is best for you or which format is suitable for your income statement. This totally depends on the reason that why you are creating the statement and for which purpose. So here are the few options from which you have to select your suitable format:
- For Management Purposes: Use this format if you are more interested in the profit and loss as a percent of total income format or profit and loss by customer.
- For a Business Loan Application: It basically asks your loan officer that what format they prefer to use.
- For Tax Purposes: This is a standard profit and loss statement format that is used.
Step 3: To Customize Your Income Statement
When you are all set by selecting the format for your income statement that suits it perfectly then you have the option to customize it. The QuickBooks made it easy for you to do the customizations into your income statements as per your needs. In this, you can also choose the accrual basis or cash basis, customize which column you required on your report, and decide the date range for the report. You can do all this into your QuickBooks account in just a few clicks.
Here are the things that you can customize into your income statement:
1. Statement Basis
There are two bases on which the statement can be created. These two bases are accrual or cash basis income statements. The cash basis is used for the tax purposes statements. It shows you the expense that you have paid and the income that you have received. If you are creating it for management purposes then you have to use the accrual basis.
2. Date Range
The income statement shows the activity according to the date range that you have selected. You have to create the income statement for the whole year if you create it for tax purposes. But if you want to create it for a loan officer then you might need to create it for multiple years. There are two ways to set the date range on the QuickBooks income statement. The way of changing the date range is the same in the QuickBooks Desktop and QuickBooks Online.
- You can enter the starting and ending date range manually for your income statement by using the drop-down box of the date.
- From the drop-down menu of the income statement that is at the top left side of history. From this, you have to choose the number of date ranges that are pre-determined. So use it accordingly to get the report according to the date range.
3. Customizing Columns
It helps you to allow you the breakdown of the multiple time periods on the same income statement. You can also so the profit and loss for your business of the short time period like OK days, weeks, months, and quarters. You can also so customize it according to the vendor, employee, product and service, or customer; this is then for management and planning purposes.
4. Other Customization
You can also Customize so your reports by setting some specific filters for comparing the profit and loss for the date range. The date range is that you have selected to another period of time by creating the specific headers and footers.
Click on the option customize report from the top left side of the income statement screen to customize your report more specifically with many other options.
Click on the option customize from the top right side of the statement screen. It helps you to find the header and footer and filtering options. You can also do compare numbers to another period by clicking on the drop-down menu and selecting that comparing period.
5. Adding Notes
Adding notes is beneficial that helps you explain any error problem enter your statement. You can also ask questions about some items in it by adding them as notes.
The notes are also known as comments. You can click on the comment on report option from your statement screen so that you can easily at the comments on the report. This helps you to understand the things with the help of comments in the future are also by others.
Click on the Add notes option to add and save the notes into your QuickBooks Online income statement. By adding notes, it helps everyone to understand the thing you want to say about certain items.
Step 4: Create your Income Statement into QuickBooks Account
Now when you are done with the customization of your QuickBooks income statement. You have to run the report of the income statement into your QuickBooks account. This can be done according to the version of QuickBooks that you are using whether it is Online or Desktop. So, the steps to run the report is as follows:
In this, the report automatically got refreshed when you customize it. If you think it is not refreshed; then you can also click on the refresh button that is provided at the top right side of the profit and loss statement. By clicking on this button, you just refresh all the changes that you have done to see what effect is done on your report. After refreshing it, if you want to do some customization that you can do it before say front and send it to others.
In this, you just have to click on the button run report that is Situated at the top right side of the screen of the income statement. By clicking on this button, the report is produced according to the customization you have done before.
Step 5: Save, Print, and Send your QuickBooks Income statement
When you are all set with the setup and saving the customizations into your QuickBooks income statement. After that, you are also done with running your income statement into your QuickBooks account. In the end, you have to save it into your system, print it, or Email it. So, there are three things that you can do after running the report from which you have to choose what you want to do. For these three things saving, printing, and emailing the details are as follows:
Save the QuickBooks Income Statement
In the profit and loss report, you can find the option memorize at the top of the report. You have to click on it to save the report. This option is also available after customizing the income statement into your account.
After running the report, you have to save it. So, to save your customization click on the Save Customization option that is at the top right side of the income statement screen. After this, you have to mention your name for the report with which it got saved. You also got an option to include the customize report in the group of reports. If you are sharing it with others then you can do specify that who can access your customized report and who cannot.
Print or Export QuickBooks Income Statement
For printing the QuickBooks income statement report, you have to click on the print button that is at the top of the screen. There is a print icon that you have to click on it so the report is going to be print or you can also export it as a PDF file. There is an Excel button specifically for exporting your income statement into the Excel spreadsheet. If you want to save your income statement report in this format then click on the Excel icon. So, it is totally up to you that you want to print it export it in PDF or in Excel.
To print the QuickBooks income statement into QuickBooks Online, you have to click on the printer icon from the top of the screen. It also allows you to send your report to the printer of your choice if you have more than one printer. To print or export the report as a document, you have to click on the document option. This helps you to print it in PDF or in Excel form. This document is going to save into your computer’s hard drive.
Email QuickBooks Income Statement
There are two different waves to email your QuickBooks income statement. These two ways are as follows:
- You can export the income statement as an Excel are PDF file and then attach it to your email to send it to others.
- You can directly send the income statement from your QuickBooks account to others.
You have to click on the email button from the top right side of the screen. Then a window opens up on your screen in which you can write the own message you want to send with this report. Your report is sent using email according to the preferences you have selected for Send Forms. You can also change these preferences under the Edit menu option and then click on the Preferences option. You are able to see the email in the sent items folder if you send your report using your email account from your QuickBooks Desktop version.
In QuickBooks Online, click on the email or envelop icon that is on the top right side of the report screen. A new window opens up on your screen that shows you the option to email the report, print the report, or send it as a PDF file. In case, you want to record this email then you have to mention the email address in the field of CC on the email report screen. So, this email also sends to the email you mentioned in the CC section that must be yours as the record of the sent email.
You get to know how to create a QuickBooks income statement with five simple steps. All these steps are explained in detail so that, You can easily create it, Choose its format, Customize it, and then produce the income statement. In the end, You can do save, Print, or also send it from your QuickBooks account whether it is Online or Desktop. For any queries, Issues, or Problems, Just get in touch with the experts team via LIVE CHAT.
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Frequently Asked Questions (Faqs)
How can I Create a QuickBooks Income Statement Monthly?
In QuickBooks Online, click on the Reports menu option.
Check under the Business Overview section.
Choose option Profit and Loss by Month.
Go to the Report Period options.
Click on the Last Calendar Year.
Choose the option Customize.
Click on the Filter section.
Select option All Income Accounts using Distribution Account.
Press button Run Report.
How many Sections are there in the Profit and Loss Report that you get after creating QuickBooks Income Statement/Profit and Loss Statement?
There are 4 sections in the Profit and Loss Report. This is also known as the Income Statement. The 4 sections are as follows:
Operating Income: This is the first section. It shows the income earned from the products you sold.
Cost of Goods Sold: This is the second section. The cost of producing or purchasing all the products that are sold is shown here. The gross profit show is the difference between the Cost of Goods Sold (COGS) and Income.
Operating Expenses: This is the third section. It has all the expenses that are not included in the second section of COGS that your business experience throughout the year.
Other Income or Expenses: This is the fourth section. It includes the non-ordinary operations of the business like income and expenses.
What are the Main things for Customizing Report while Creating QuickBooks Income Statement?
The things that can be customized are as follows:
General Section: In this, You can change the reporting period, number format, and accounting method.
Filter Section: Filter the accounts, Customers, Products, and Vendors shown on the report.
Header or Footer Section: What to show in the header and footer of the report.
Rows or Column Section: Select the rows and columns that you want to display in the report.