In this article read what is an income statement, and how to use, print, and generate an income statement in QuickBooks Desktop. QuickBooks Accounting software doesn’t only assist in managing and tracking cash procedures, it also helps to determine the success of your business’s performance. This is why it is important to keep a tab on all your financials. This will help you track all your money matters both online and offline.
What is Income Statement in QuickBooks
It helps in learning how well your business is doing. You come to know whether your company is earning profits or losing money. The income statement is purely based on facts and figures of your company.
The income statement or the profit or loss statement shows all your income and expenses of your company/ business for a specific period of time mentioned. These can be prepared monthly, quarterly, or annually. It is generally mentioned “for the year ending December 31, XXXX,” for a year-end income statement, “for the three months ending September 30, XXXX”. This is how it is expressed.
How to Use Income Statement in QuickBooks?
For the purpose of reviewing and verifying the company operations if the statement is required you will have to choose the period that is suitable for you. The same goes for the quarterly and monthly periods as well. In case you require the P&L statement for loan application the statement must be year-to-date that end with the current month. You need to present the statement for the complete year for a loan application purpose.
If you want to examine your company, “how to escalate profits, and curtail unnecessary expenses you can do it easily by comparing the income statements over a period of time. For this, you also need to create an Income Statement for your company. Creating an Income statement or profit & loss statement is a simple process. The below-mentioned steps will guide you in creating an income statement in QuickBooks.
How to Print Income Statement in QuickBooks?
QuickBooks clients can without much of a stretch make an assortment of monetary reports, including payable maturing, money due, income proclamation, asset report, and P&L articulations. What’s more, these reports then make a budgetary examination of organizations straightforward. Moreover, QuickBooks can even help organizations in finance administration by following what is owed to every worker of a business.
QuickBooks allows users to have the benefit of all the features discussed above. This can be possible with QuickBooks Simple Start, Pro, and Premier. This helps you gain control of your organization’s financial procedures with this innovative accounting software.
- Start QuickBooks, from the Reports menu, choose Company & Financial and Profit & Loss Standard.
- After the report displays, choose Modify Report.
- On the Display tab, change the date range to 12 months (for example, select Last Fiscal Year in the Dates drop-down).
- Change the Columns drop-down from ‘Total only’ to ‘Month.’
- Choose OK to close Modify Report.
- Choose Collapse on the reports button bar.
- Choose Print.
- Change the Orientation from Portrait to Landscape.
- Check the box “Fit report to 1 page(s) wide.”
- Choose Preview.
- Choose Print.
- Choose to Memorize and name the report Profit & Loss by Month.
How to Generate Income Statement in QuickBooks?
Here are the four steps to generate the income statement in QuickBooks. Follow the below mentions steps to generate.
Step 1: Choose a Specific Time Period
- As mentioned earlier the income statement can be estimated on a monthly, quarterly, or annual basis to compare the business profits and losses.
- There are also other different federal regulatory agencies that emphasize companies create their Income statements on both quarterly and annual basis which help during tax filing season.
- You can also prefer to generate income statements on a monthly basis to glance at the profits and expenditures of the company.
Step 2: Aggregate the Revenue
The initial thing that you need to do is totally your Income Statement is the total sales of your company. For those businesses that are cash-based businesses, the document is sales based on when a customer makes a final payment that has already been gained. In case you are following the accrual method you will involve accounts receivable as profit.
On the basis of the product or services accorded by your company, the income source will alter. The added-up sales will be basically from the sales record register through online payment systems.
Step 3: Estimate Total Expenses
The expenses involve the money used for business in order to generate profits directly or indirectly.
- Employee Compensation such as salaries and payroll services.
- The cost of Services such as web hosting fees, the cost of service delivery, data storage, etc.
- General and Admin Expenses such as regular office management costs such as house rent, depreciation, mobile bills, utilities, etc.
- The cost of goods such as raw materials, equipment, packaging, etc.
- Marketing and Advertising Expenses: online marketing, email marketing services, mobile marketing, etc.
Step 4: Concluding Profit
For the different types of revenue, you can examine and easily compare them on a monthly and quarterly basis.
- If you minus COGS from the total sales then the figure that you will receive will be the Gross profit.
- Every other cost that you are still available with will be counted under misc. expenses.
- If these will be deducted too then you will be left with operating income.
- To reach the net income figure, you will need to deduct your taxes for that time.
I hope the above information will help you with how to Get Income statements from QuickBooks, How to Print Income statements in QuickBooks and How to use Income statements in QuickBooks. If you are having issues with the below-mentioned topics then connect to our QuickBooks consultant helpdesk and get help from QB Experts.