QuickBooks Financial Statements: Complete Overview

Are you opening a business bank account, applying for a business credit card or loan, or budgeting for the coming […]

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Are you opening a business bank account, applying for a business credit card or loan, or budgeting for the coming year?

Then you can use QuickBooks financial statements.

If you don’t know what QuickBooks Financial Statement is, then you don’t need to worry.

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In this article we will provide you with a complete guide on QuickBooks Financial Statements. What financial statements are accessible in QuickBooks, what they may tell you about your business, and how to obtain them?

What is a Financial Statement?

Different forms of financial statements are used by business owners to acquire a better view of their company’s current financial situation. The three primary financial statements (QuickBooks profit and loss statement, QuickBooks Balance Sheet, QuickBooks cash flow statement) each concentrate on a different area of your finances. While a whole set of financial statements provides the entire narrative of a business, each report can be utilized for many purposes and is frequently used for external reporting.

The QuickBooks Balance Sheet is the financial statement created by QuickBooks. Profit and Loss Statements, balance sheets, and cash flow statements are all examples of financial statements. This financial statement will assist you in keeping track of your business potential as well as areas where you may improve.

Knowing what’s in your bank account isn’t enough to manage your small-business finances. These three financial statements (QuickBooks profit and loss statement, QuickBooks balance sheet, QuickBooks cash flow statement) give you a view of your company’s financial condition. This can help you keep track of your finances and might be important when wooing investors or asking for a small business loan.

How to Prepare QuickBooks Financial Statements

QuickBooks can design dozens of custom reports to assist you in running your business more efficiently. You can create reports by:

  • Product
  • Vendor
  • Employee
  • Bank
  • or Customer

In addition to the traditional three financial statements

  • QuickBooks Profit And Loss
  • QuickBooks Balance Sheet
  • QuickBooks Cash Flow Statement.

QuickBooks allows you a lot of freedom in terms of how you use and distribute your statements. You can look at them in QuickBooks, email them to yourself or another employee, or export them to look at later. QuickBooks also allows you to schedule financial reporting so that you can receive and share updated financial statements automatically on a regular basis.

Below mentioned are the three main types of QuickBooks financial statements that you can create.

Profit and Loss Statement in QuickBooks

Your profit and loss statement, also known as an income statement, describes the financial performance of your company over a specific time period:

  • Daily
  • Weekly
  • Monthly
  • Quarterly
  • Annually

Why do You Need a Profit and Loss Statement in QuickBooks

Your profit and loss statement is a very important document as it reveals the company’s major expenditures and revenue streams.

In QuickBooks, you may generate a normal profit and loss statement or a profit and loss detail that displays year-to-date transactions for each income and spending account. The profit and loss statement allows you to take advantage of chances to boost sales while lowering costs. The profit and loss statement should be reviewed more than once a year, and especially before paying your small business taxes.

How can You Make a Profit and Loss Statement in QuickBooks?

To make a profit and loss statement in QuickBooks, follow the steps mentioned below:

  • First of all login to QuickBooks.
  • Then go to the dashboard.
  • After you open up the dashboard, select Reports on the left navigation bar.
  • Now you can navigate to the recommended tab or All Reports.
  • Once done go to the Business Overview.
  • The following step is to go to the Profit and Loss.
  • Finally, To open the report, Simply click on the name or click on the Run link.

Note: The Recommended tab is a bit faster than all the options, but the Profit and Loss Detail is only available in All Reports.

When the report is open, you can adjust the date range or click Customize to make further changes.

For instance, here you may examine the quantity and percentage of earnings generated by a given product or client. You may also change the reporting period here. If you just modify the data without using the customize button, be sure you click the Run Report button to see the report for the updated dates. Remember that you may read the report in QuickBooks, email it to yourself or others, or export it as a new file.

Balance Sheet in QuickBooks

A balance sheet compares your company’s assets against its liabilities and shareholders’ equity. It indicates what you own, what you owe, and how much stockholders have invested.
A balance sheet is a description of a company’s assets, liabilities, and equity – effectively.

It’s a snapshot of your company’s value at a given point in time.

Balance sheet items are derived by subtracting your obligations (what you owe) from your assets (what you possess or what is owing to you).

Your Assets = Liabilities + Shareholders Equity.

The end outcome is equity, or the value of your firm.

Note: Both sides of the equation have to be the same to balance it out.

Why do You Need a Balance Sheet in QuickBooks

Balance Sheets are helpful for accountants to assess your financial health and for banks to consider when you seek a loan. It’s also critical for a small business owner to obtain a genuine feel of how their company is performing.

The regular balance sheet is good, much like the profit and loss statement, but it is recommended retrieving the balance sheet data in QuickBooks to transmit to your tax preparer. As you might expect, this is a more extensive version of the regular balance sheet, displaying the starting balances at the beginning of the previous month, transactions entered during the month, and ending balances.

Balance sheets are useful to accountants in assessing your financial health and to banks when you apply for a loan. It’s also vital for a small business owner to have a true sense of how their firm is doing.

For example, if a shareholder contributes $5,000 in your firm, your shareholder’s equity and assets both grow by that amount. Because both sides rise by $5,000, the equation remains balanced.

  • The asset and liability portions separate accounts based on the duration of the balances. Long-term debt, for example, is reported on a distinct line than current debt.
  • The balance sheet is most useful in short periods of time since it is the only financial statement that is based on a specific point in time.
  • While other financial statements, such as the Income Statement, aggregate sales over time, the balance sheet just shows the current balance, or how much cash you have in the bank on the day of the report. As a result, the report is beneficial for analyzing liquidity and solvency.

How can You Make a Balance Sheet in QuickBooks?

To make a Balance Sheet In QuickBooks, follow the steps mentioned below:

  • First of all login into QuickBooks
  • Then navigate to the menu bar.
  • On the menu bar, Click on the reports option.
  • Now you can either go to the recommended tab or to All Reports.
  • Once done click on the Business Overview.
  • After you are done, then choose a Balance Sheet option.
  • The following step is to click on the report name or the link that says Run to open it.
  • Finally, You will get a preview message that says “this works for the P&L and other reports, too”.

Note: The Recommended tab is a bit faster than all the options, but the Profit and Loss Detail is only available in All Reports to get your Balance Sheet Detail.

You may also customize your balance sheet before seeing it. QuickBooks Online will take you immediately to the customization screen when you click the Customize button. This allows you to select your date range as well as some additional choices, such as adding a column to compare to a previous period. When you are finished you should press the Run Report button.

Cash Flow Statement in QuickBooks

A Cash Flow Statement, also known as a statement of cash flows, Illustrates the amount of cash that comes into and out of your organization during a certain time period. The statement of cash flows is significant because it demonstrates your company’s real cash position for funding operating costs and debt commitments. A cash flow statement will demonstrate your company’s liquidity.

Depending on your accounting approach, you may record income at the moment of the sale or when the customer pays. QuickBooks allows you to pick your accounting technique, making it simple to keep track of your cash flow.

How can You Make a Cash Flow Statement in QuickBooks

To make a Cash Flow Statement in QuickBooks, Follow the steps mentioned below:

  • Firstly, Login to QuickBooks.
  • Then go to the navigation bar.
  • Once on the navigation bar, Click on the reports option.
  • On the reports, In the search box type down, Statement of Cash Flows.
  • Now to edit any report options, Choose Customize.
  • Finally, Click on the Run Report option when you are finished customizing.

Note: You can also adjust the reporting period or filter by customer, employee, vendor, or product.

There are two ways to publish a cash flow statement, but both center on the concept of cash entering and departing a firm for various reasons. This report allows you to differentiate between cash received via a loan and cash received from a customer for a sale, for example. This information is critical to your performance since it aids in the development of resource predictions to plan for important forthcoming expenditures.

Summary of QuickBooks Financial Statements

The three basic financial statements (QuickBooks Profit and Loss Statement, QuickBooks Balance Sheet, QuickBooks Cash Flow Statement) all you need to acquire to get a complete guide of your business’s financial performance for most small enterprises.

Here’s a rundown of the QuickBooks financial statements that are currently available:

  • Profit and Loss Statement: Viewing your company’s income and spending summary as well as full data for each account.
  • Balance Sheet: Understanding your company’s debts, obligations, and assets by using a balance sheet.
  • Cash Flow Statement: Tells how successfully your company’s cash flow can sustain its debts and obligations using a cash flow statement.
  • The General Ledger: The report displays the starting balance, transactions, and totals for each account in your Chart of Accounts.
  • Customer, Job and Sales Reports: Helps to keep track of what’s affecting your accounts receivable using customer, job, and sales data.
  • Item Reports: Use analytical merchandise and product reports to manage your inventory.
  • Vendor Reports: Keep track of your company’s spending and accounts payable.
  • Banking Reports: Reconcile all of Your Bank Accounts and credit card statements to see where all of your money is.
  • List Reports: These allow you to easily get information in the form of lists, such as customer or product lists.
  • Payroll and Employee Reports: This helps you to understand how staff expenditures affect your company (it is more helpful if you have QuickBooks Payroll).
  • Accountant and Tax Reports: These reports are solely for usage with customers by accountants and tax preparers.
  • Budgeting and Forecasting Report: You can use them to plan ahead for your company and keep within organizational budgets.

Along with running each of these reports on a regular basis, you can also use them for additional assessments, such as a common size analysis, and to obtain excellent visual representations and graphs of how your company is functioning in QuickBooks.

Financial statements (QuickBooks Profit and Loss Statement, QuickBooks Balance Sheet, QuickBooks Cash Flow Statement) are very useless to have a better understanding of their company’s present company’s current financial position.

How to Prepare Financial Statements on QuickBooks Pro

You can generate financial statements using your business records in QuickBooks Pro without performing any manual calculations. You can change the report’s columns and contents to display only the details you need. This allows you to adapt all of your QuickBooks Pro reports. Also, you may create statements for individual customers that detail their transactions with your business during the previous month as well as any outstanding balances.

Creating Company Financial Statements

  • Choose Company & Financial from the Reports drop-down menu by clicking it. To prepare the report you want, click it. More reports are available in the section titled Accountant & Taxes.
  • By entering dates in the From and To columns or selecting one from the Dates drop-down menu, you can customize the report.
  • Select Modify Reports from the menu. Click the if you wish to appear in your statements clicking them under the Display tab. Each item will have a checkmark next to it. If any of the boxes are checked, simply click on the items you want to exclude. Click OK after making any necessary adjustments to the other tabs items.
  • Select Print from the menu. You have the choice to memorize, email, or export the report to a spreadsheet with your chosen settings in addition to printing.

Creating Customer Statements

  • Select Create Statements from the Customers menu.
  • Double-check the statement date in the Statement Date field and the statement period that the statement should cover.
  • Select the printing choice for the customer. All Customers, Multiple Customers, One Customer, Customers of a Certain Type, and Preferred Send Method are the options.
  • To Print the customer statements, click the Print button. Click the Preview button to first view the statements. Once you have confirmed the statements are accurate, a Print button will also show up on the Statement Preview window.

Now that you have a complete guide on QuickBooks Financial Statements. You can easily make your company’s financial statement to check its financial statement. However if you are stuck or have any queries you can get in touch with Dancing Numbers team for quick and easy assistance.

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Frequently Asked Questions (Faqs)

It is Recommended to make a Balance Sheet in QuickBooks While Making a QuickBooks Financial Statement?

The ordinary balance sheet is OK, but it is recommended getting the balance sheet data in QuickBooks to send to your tax preparer. Since, this is a more detailed version of the ordinary balance sheet, indicating the starting balances at the beginning of the previous month, transactions entered throughout the month and ending balances.

What does a Complete set of QuickBooks Financial Statements Contain?

A statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity, and a statement of cash flows must all be included in a complete set of financial statements, according to the standard.

What are the Main Objectives of QuickBooks Financial Statements?

Your financial statements should be very easy to comprehend, relevant, trustworthy, and comparable. The purpose of financial statements is to give information about an enterprise’s financial situation, performance, and changes in financial status that may be used by a variety of users to make economic decisions.

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