Tuesday, May 29, 2012

QuickBooks: Creating a Budget


I have a client that has a fiscal year 8/1 – 7/30.  We would like to create a budget now. How do I do this?

I’m glad to hear you are creating a budget!  It is important to know that all budgets must be account-based. You can create budgets for either Profit and Loss accounts or Balance Sheet accounts by fiscal year.
To do this task
  1. Go to the Company menu, choose Planning & Budgeting, and then click Set Up Budgets.
Note: If a budget currently exists, the most recent budget will be displayed in the Set Up Budgets window.
  1. Click Create New Budget.
  2. Choose the fiscal year for the new budget, and choose Profit and Loss (income and expense) or Balance Sheet accounts.
If you choose Profit and Loss, you can specify additional criteria of either Customer:Job or Class, if class tracking has been turned on.
  1. Choose whether you want to create the budget from scratch or from the previous year's actual data.
·         Create the budget from scratch
You manually enter amounts for each account that you want to track.
·         Create the budget from the previous year's actual data
QuickBooks automatically enters the monthly totals from last year for each account in the budget.
  1. Click Finish to create the new budget.

Now you will see the budget in the reports menu.  Did you know that you can create variance reports also which show the actual vs. budget to help with ongoing decisions. I encourage you to create one at least every quarter.

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