7 Steps to Create Profit and Loss Reports in QuickBooks
Small businesses use QuickBooks accounting software to create a number of business reports, such as profit and loss reports etc.
Profit and loss report is a report that analyses the total income and total expenditure for a specific period of time.
These reports are the most important element in a business to track the business results. The reports show almost all the income and expenses, bills, invoices, and journal entries.
Most companies break down the report through additional type or the metric like location, product line and customer type. These reports are prepared as frequently as management need them, can be monthly or quarterly perhaps even weekly in some businesses.
Querying and writing code to generate such types of reports can be complicated, but it can be easily achieved by using the software’s tools properly.
Profit and Loss reports can be used in the following:
- to present to investors
- to evaluate your success
- while filing taxes at the end of fiscal year
- To apply for a line of credit.
Follow the given steps to create profit and Loss reports using QuickBooks:
Step 1: Double click on the “QuickBooks” icon in order to open QuickBooks. You may also go to the “Start” menu and search “QuickBooks” among your computer applications. Once you have opened the QuickBooks turn on the “Class Tracking” option to create a profit and loss report as required.
Step 2 Move the cursor to the “Edit” menu, then select “Preferences”. Choose “Accounting.” Click on “Company Preferences.” Make sure that the “Use class tracking” box is checked. Click “OK.”
Step 3 Go to the “Lists” menu. Scroll down the menu and select “Class List.” Click on “Class,” then select “New.” You will be required to fill a class name. Type “Unclassified” in that field. Then, Click “OK.”
Step 4 Point the cursor to the “Reports” menu. Now, select “Company & Financial > [P&L Report].” This will open a report window. In order to open the next window click on “Modify Report”.
Step 5 Click on “Filters,” then select “Class.” Choose the “Class” from the drop-down menu and populate it with “Multiple Classes.” A new window will be opened named “Select Class”.
Step 6 The next step is to select the “Unclassified class” that was created and other classes that you wish to use in the report. Now, Click “OK.”
Step 7 Click “OK” in order to close the Modify Report window and apply the filter here. Double-click on the information that appears in the line item and assigns a class to for unclassified transactions on the report. Click on the “Save,” button then click “Close.”
- Microsoft Sharepoint2018.03.30How to Select the Best between SharePoint Server and SharePoint Online
- SharePoint Hosting2018.03.22Avoid SharePoint Compliance Risk by implementing a Robust Information Governance Plan
- Dedicated Hosting2018.03.20Guide to Selecting the Best between Office 365 Hosting and Hosted Exchange
- QuickBooks2018.03.07Boost Up Your Accounting Performance with Managed QuickBooks Support Services