Grab your coffee, and let’s dive into QuickBooks Online 2024 for a budgeted income statement correction. In our journey with Get Great Guitars 2020, we’ve been exploring the major financial statement reports. Today, we’re focusing on the Profit and Loss statement.
To start, open the Balance Sheet, Profit and Loss, and Trial Balance reports in separate tabs. Adjust the date range to 01/01/24 – 02/29/24 for a month-by-month breakdown. Now, let’s close the hamburger menu on the Balance Sheet and Income Statement tabs.
In previous sessions, we crafted our budget in Excel, starting with past data from January and February. However, after importing the budget into QuickBooks, we noticed discrepancies.
The first step in resolving the issue is to compare line items. Using a calculator, cross-check each category’s total on the Income Statement. In this example, we discovered a variance in net income, leading us to investigate further.
Checking each section, we found that an interest expense was missing in QuickBooks. To fix this, navigate to the Budget section, edit the budget, and manually input the missing values for interest expense. Ensure the total aligns with the original budget.
Once saved, rerun the Profit and Loss report. Verify that the net income now matches the budgeted amount. This meticulous process ensures data accuracy and resolves discrepancies between the budget and actuals.
Remember, QuickBooks budget reports lack a double-entry accounting system, so errors may occur. To mitigate this, double-check your inputs, involve a second set of eyes, and run reports regularly.
In the next session, we’ll delve deeper into the Budget versus Actual report, providing insights into tracking financial performance against the budget. Stay tuned for more QuickBooks Online tips and tricks!