QuickBooks Online 2021 #5 Budgeting | Robert Steele | Skillshare

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QuickBooks Online 2021 #5 Budgeting

teacher avatar Robert Steele

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

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Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

6 Lessons (1h 15m)
    • 1. Overview

      1:41
    • 2. 11.01 Budgeting Overview

      11:27
    • 3. Transfer Data From QuickBooks Desktop Backup File

      13:38
    • 4. 11.03 Budgeted Income Statement Excel

      21:40
    • 5. 11.05 Budgeted Income Statement Data Input

      11:42
    • 6. 11.07 Budgeted Income Statement Reports

      14:32
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About This Class

Project based course focused on entering budget data and running budget reports.

We will discuss how to put a budget together, enter budgets into QuickBooks, and generate and analyze budget reports.

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Transcripts

1. Overview: Quickbooks Online 2021 number 5, a budgeting, a project based course to focus on end-to-end data related to budgets into QuickBooks Online for both a budgeted income statement and budgeted balance sheet, and then running reports related to those budgets, including a budget versus actual report that then being in essence the final project down below, we have information that can be downloaded to help us to data as well as review the data entered. If you do not have access to QuickBooks Online, you have may try to think about if you can get access to the 30 day trial offered by Intuit, the owner of QuickBooks, which is often free. There's a link to that here, or you might try typing into your favorite browser, free 30 day trial of QuickBooks Online. Also, we have a backup file if you'd like to work with the data that we have in our practice problem, noting that the backup file is a desktop version, backup file. So you would need the desktop version, which you also might be able to get a free 30 day trial for if you type into your favorite browser, QuickBooks online free 30 day trial for the desktop version in order to restore the backup file so that you can then use that data to transfer into QuickBooks online in order to have our starting numbers or else you can use whatever data file that you currently have in order to enter the budget data as well. We do go through that process up top if you want to work on that transfer process in the course. In the second presentation, the final project will be the budgeted reports. 2. 11.01 Budgeting Overview: Quickbooks Online 2021, that budgeting overview. Let's get into it with Intuit QuickBooks Online 2021. Here we are in our get great guitars practice file. We're going to give an overview of the budgeting process. First, let's open up our financial reports that being the balance sheet and the income statements. So we're going to go up top to the tab, up top right-click on it, duplicate that tab, doing that one more time, right-click on the tab up top and duplicate that tab. Once again, we're gonna go to the reports down on the left-hand side, this one, we're going to be opening up the P and L, the profit and loss, the income statement range changing it up top to the endpoint of 02 28 to one. And then run and then close the hamburger and then hold down control and scroll up just a bit to that one, to 5% to the tab to the left. Now, we're gonna go back down to the reports on the left-hand side, looking for the BS balance sheet or report scrolling back up top. And then in the point 0, 2 to 8, 2, 1. And then we're going to run that report and close the hamburger once again, now we're thinking about the budgeting process within QuickBooks. I'll just point out where to go for the budgeting process then what kind of give an overview of the budgeting process in terms of what can QuickBooks do for you and how do you want to go about setting up the budget? So first, if I go back to the first tab to just start the budgeting process, it's under the COG up top. So it's currently under the COG. So if we go into the COG, we're going to go to the Tools area and then go down to the budgeting. So we'd set up a budget and then we would add the new budget hears we'd be adding the new budget. Then we have our name options. I'm just going to call it budget one and then the fiscal year. So we're going to be doing the fiscal year for the 2021, then the intervals, the monthly is probably the most common, but you can do it on a yearly or quarterly basis as well. So if we choose yearly, we'd have the yearly column, quarterly, we got the coordinate column or columns, we're going to stick with the monthly columns here. And then we have the pre-fill information. You can't take the prior year information. We'll talk a little bit more about that later because that gets into how are you going to construct the budget? How are you going to put the data into the budget? And then we have the option to sub-divide by customer. In the last option, we're going to keep the default as don't sub-divide here. Now down below, we basically have an income states, so they just wind up our income statement and then we have it by month up top. So that's going to be your grid that we have to input the budgets. We basically got the income line items on the left-hand side, and then we have the date range on a monthly basis given our option that we chose on the top. So then we of course would just be entering data into the budget. So then the question is, well, where are we going to get the information that we're going to put into the budget. And that of course, it's a question that's a little bit bigger than QuickBooks because QuickBooks is going to be the data input tool. And so what do we use QuickBooks for? We want to put the data into QuickBooks so that QuickBooks can give us the reports that we're going to be generating. So in other words, once we have the data in QuickBooks, if I was to enter this budget into the system, then QuickBooks can help us to generate reports such as budget versus actual type of reports, which can be useful for an analytical purposes. But then the question is, well, how do I get the information that I'm going to be putting into the budget. Then for that, I would use another tool other than QuickBooks, which would typically for me be Excel, meaning we're going to take the information, generate what the budget should be, basically within Excel, and then take that information that we have generated and put it into QuickBooks. We're simply going to input it into QuickBooks so that QuickBooks can help us to generate reports as time passes, meaning as time passes, then the standard process will of course be, we will predict what is going to happen into the future. And then time will pass. As time passes, then we can run reports that will say a comparison between what we predict it to be happening to what actually happened in and give us those differential type of reports. So what we're gonna do in the future is inter the whole year's worth of information. Notice in our practice problem, we have already entered data for January and February of 2021. So we're going to enter the data in the budget, pretending it's back on before January and February and we'll enter it for the entire year on the budget team basis. And then we'll pretend we'll be thinking that January and February had been passed. And we can then check out the reports that can be that can be generated comparing the actual versus the budget. And then of course, everything from March onto the December is we're imagining in the future something that we haven't got too, and we've entered the budget into it so that we can then have a, a line or that we're shooting for, right? That's the goal that we're gonna be going towards. So then of course the question is, well, how do I generate the budget? When we think about the budget and normally we're thinking about a profit and loss type of report here. So usually you're going to start off with the good old P and L type of report. The Profit and Loss report is the report that's a performance report. So when we're thinking about how we're doing in the future, we're typically going to be thinking about performance. And that's similar to like if you're thinking about someone running a race, if you're trying to think in a situation of how far can a car drive in so many hours or something like that. Then you'd have to reset the odometer and then you set the hour and then set the car, drive it and see how far it can go in the hour. That would be a similar situation for us. We're going to reset the odometer for the profit and loss revenue and expenses. And then we're going to see how much revenue and expenses are generated and the next time period that being a month or the year, that's our that's our timing statement. As opposed to the balance sheet over here, which will tell us where we stand at a point in time. We can't have a budgeted balance sheet and that's useful to have as well. The balance sheet is going to tell us where we are as of a point time in the future. So in other words, if we're at this point in time right now and we predict that we're going to, for the mileage method, for that mile example, if we predict that we're going to drive so many miles, then we can predict where we will be in the future. And that's the same thing for our financials, right? If we know the balance sheet at the starting point, the beginning of the year, and we budget out for a year predicting what we're gonna do in terms of revenue and expenses, then we can have a decent idea of where we will be at the end of the year. However, of course, there are other complications with the balance sheet because we could have, we could spend money on investments and things like that. We could get into a lot more detail in terms of how you get to the balance sheet of what a fool kind of budget looks like, but that's probably beyond the scope of a QuickBooks course. We do have courses on that. And that kinda skirts the line as well between like bookkeeping and financing. Because when you're doing the act or the accounting and financing, let's say because when you're doing the accounting side of things, of course, we're trying to take the information and put it into the system as accurately as possible when you're thinking about taking that information and then projecting into the future, you're kinda looking at more, maybe possibly like managerial accounting or financing, where you're taking that information, that kind of projecting it into the future. You still need the accounting tools to do that because once you make the projections into the future, in order to generate the budget, you're going to be using basically financial tools to do that. So you can go into a lot of detail in terms of what's the best way to budget and how do you project out in the future? You've got finance, you've got managerial accounting that both get into that kind of analysis and then you've got the logistical component of how do you do that, which is going to be basically accounting right? Where you would tell me what you think's going to happen. And then we'll we'll project it out into the future. And then we can put it into the QuickBooks here, in QuickBooks isn't comes into play with the data input that we can then take our projections and put them into QuickBooks so that QuickBooks can then give us nice comparisons. That's the point of the QuickBooks. Quickbooks is there to give us the report's going into the future. And if you are, by the way, a bookkeeper or in the accounting department, then you kinda wanna know where your role is. Obviously the if you're working for someone who owns a company, the role of course, is that type of thing projecting out and into the future, trying to make the decision-making process, managerial accounting kind of decision-making process. Our goal then is to take that information and the actual information and projected information that they want, put it into the QuickBooks system so that we can generate the most accurate reports on which they can then project out into the future and make their decision-making processes into the future. Here, of course, we're going to be focusing in on the income statement. So we'll think about the income statement. Then how would we generate a budget into the future? The most common way is to take a look at last year. That's at least the starting point. That's not the ending point, but that's probably going to be the starting point when we're thinking about anything in the future. How do I know what's going to happen into the future? How can I even guess what's going to happen into the future? Well, there's a couple different ways. One, you pull up the crystal ball and you stare at it until like a vision comes in your mind. And 2, you'll start with the past. What happened in the past. And then, and then you try to make projections into the future, make changes basically into the future based on what the current state of the economy is and what do you think's going to happen in the future? You, how your business is going to grow changes to advertising changes, and how much you think you're going to invest in capital investments, for example. And so that's going to be the process for basically generating the budget. Once I have the budget, then we'll put it into the QuickBooks system. So how can we start that process of thinking of putting together the budget? I would start by basically taking either the income statement or, or basically the trial balance, export it to Excel for the prior year. Alright, we're gonna take the prior year numbers, export it to Excel, or use whatever numbers we have, export it to Excel, then project out into the future on a monthly basis, possibly taking the numbers for the full year, divide it by 12, and look at the monthly numbers, or L2, we can actually take the monthly numbers for the prior year and use that as our as our projection basis. And what base it in some way on the prior year and then start to make adjustments within, I would start with Excel, the projections we think that are going to be different in the current year based on the state of the economy, based on our investments, based on the amount of advertising we either increase and decrease, and so on and so forth. So that's what we'll do in future presentations, that kind of work, that kind of projection work. I would think Excel's the best tool to do that. Then once we have that projection setup in a grid in Excel, we would rather put it, we want to put it into QuickBooks. Why would we put it into QuickBooks when I already have the information in Excel? Because then in QuickBooks, we can generate the reports. We can generate nicer reports than we can in our Excel. And we can more easily make those reports that are going to be comparing what actually happened to what we predicted to happen. So it's nice to have it all at one place and to be able to use QuickBooks to generate reports. So that's what we'll do next time. We'll start to export the data that we have. And then think about how we can use projections on it. Obviously, we don't have the prior year data because we started our business here in 2021. So in that case, we're going to have to use whatever we got to kinda be our starting point and then, and then make our budget from there. And then we'll take that information and put it into the QuickBooks system as a budget. And then we'll take a look at what QuickBooks does well, which is to generate reports with that data. 3. Transfer Data From QuickBooks Desktop Backup File: Quickbooks Online 2021 transfer data from QuickBooks Desktop backup file, so that we have starting numbers in a QuickBooks Online account. Let's get into it within two. It's QuickBooks Online 2020, one, here we are on our desktop. Our objective is to set up a new QuickBooks Online a file, and then take the QuickBooks Desktop backup file that we see here and take the data from it as our beginning numbers in our new QuickBooks Online file. And we would like to do this for free. Our assumption is going to be that you don't have access to the desktop version or the online version. Therefore, we're going to utilize in this process the free 30 day trial for both the desktop version and the online version. So a couple of caveats here. If you do have the latest version of the desktop program, you can kinda skip forward to that point when we go from the desktop version to the online version. However, if you have an older version of the desktop version, you might be thinking that you could skip forward, but you may not want to. You may still want to do the same process to get the free 30 day trial of the latest version of the desktop program and then take your backup file here or create a backup file that you're using this with your own data from your prior version software, restore it to the latest version, QuickBooks, so that you have the latest version which is most likely to convert over as easily as possible when we convert the data to the QuickBooks Online process. So that's going to be the general process. We will then download the 30 day trial of the latest version of QuickBooks Desktop will restore our backup file to that latest version of a desktop version. Then we'll use the kind of process within the desktop version to link to the online version. In our case, setting up hopefully a free 30 day trial for the online version. However, you could just set up a new company file and pay for the online version at that point as well. Also note that we are doing this basically as starting points for practice problems where we would like to have the beginning balance in place. Therefore, if you're doing this for a course, just note that the file name might not be the same, but the process will. So let's go on over to QuickBooks online just so we can see it. This is the Intuit website. Our goal is to set up free 30-day trials, will have to do it for both online and desktop to make this process work. So just to see with a 30 day trial is in the in the Intuit Online at this point in time. It's at I NTU IIT.com, into.com. That's the owner of QuickBooks. I'm going to go into the QuickBooks item or icon. And then we're gonna go all the way down to the bottom where our products are. And then I'm going to go into the QuickBooks Online. So we'll go into then the QuickBooks Online. And you can see down below, they typically have this free 30 day trial. So that's we're still going to try to get access to that free 30 day trial in our practice problem here. But we have to do it as we set up the information from the desktop version and convert it over. So therefore, our first step is not to open the free 30 day trial here, but rather to then open up the desktop free 30 day trial and then, and then take our company file. So we're going to then type into your favorite QuickBooks Desktop free trial. I find that it's easier to actually look in your favorite browser like a Google or something like that then actually on the Intuit website, I'm not sure why that is the case. It typically is that we will be going to an intuit or QuickBooks owned site for the free trial. So we're then gonna say, okay, then typically will have something that download a free trial of QuickBooks Desktop. So remember we're looking for the desktop version here, even though we will then be going into the online version later, because we want to convert the data files. I'm going to go into this item. I'm going to download the latest version of the Desktop pro. So I'm going to go down. It says QuickBooks Pro 2021. That's what I want. It has the license number down here, which you may need to activate the software. So then we're going to click on that item. And then the QuickBooks Pro starting machine runs down here. This is the actual program. I'm in Google Chrome. That's why it's going to pop up down here. If you're in like Firefox, that download item might be up top and so on. Then you're gonna run that. Now I'm not going to go through the running process. It can't take some time. It's a fairly large program, QuickBooks. So just be patient with it. But I won't go through the whole process of running it at that point. At this point, that'll take awhile. Instead, we're going to say at the end of the time period when you run it, you will then have an icon that's going to be QuickBooks Pro. It may not be ProPlus just pro would be fine. 2021. So once again, we want the latest version because that'll make the transfer from the desktop to the online as easy as possible. And if you don't have the latest version and you're doing this for some other purpose than you might want to take your data file, make a backup of it from your data file, then do the process we're doing here with the latest version so that you can have the best chance of your data converting over as good as possible. Then we're gonna open up this file. We're gonna open this up so that we can backup or restore this backup file. And we're going to restore it to this folder. Gets a little bit confusing. We got a couple of things going on here. We've got this is going to be our QuickBooks file. This is our backup file with the data in it kinda like a Word document as compared to Microsoft Word. Once we restore the backup, though, because this is condensed, we will unpack it and create another file, which is going to be the actual writing file, that QB o file, which I'm just going to put in this folder. So let's go ahead and do that. I'm going to go into QuickBooks. Typically, if you have a company file open, you can close the company file by going into the file drop-down and then go and down to close the company file. So I'm gonna go ahead and close our company file. And then you'll typically if this is the first time you've ever opened QuickBooks, you'll be in this intro screen. And this will be the typical kind of intro screen. From here, we can create, we can open or restore a company file down here. I like to do it from the file drop-down, up top. So I go to the file drop-down, open or restore a company file. We're going to restore a company files. So we've gotta go to the second option that I'm going to say Next. And it's going to be a local item. That means it's on our desktop. So I'm going to say next, then I'm going to find it on the desktop. So I'm going to say desktop and there it is, the starting point of the adjusting entries. That's the one we want. So I'm going to say, Okay, and then next, now I got to see where I want to put it. So once I uncompressed this, this is where it's gonna go. You could keep it on the desktop, but I recommend creating a folder because it creates not only one file, but some other kind of files that go with it for some reason or another. So it's nice to have it in a folder so you don't have these other weird things floating around on your desktop. So I'm going to put it in here. You can rename it if you want to name it something different, it down here, of course. And then I'm going to save it. So we're going to save that item. If you're working along with the course and you're using any file that's a great, great guitars file. The password is G, G, G capital G, G, G 1234, capital G, G, G, 1234, capital G, G, G, as in good grade guitar's 1234. Okay. Now the restoration process can take some time, so give it a little bit of time here. Once it's restored, if I go back to the desktop just to see what happened, There's my backup file, nothing happened to it. There's my program, that's good. Now I've got the folder which has stuff in it. Now this is where we put the actual data file. If I go into that data file, then you can see I'm going to make the icons larger. There was nothing in this folder before. This is the actual like q o file, the actual file that we're using. But you can see it made all this other kind of stuff that I'm not sure how necessary it is if you deleted it all, I think the files still works, but that stuff just kinda hangs around if you put it on your desktop. So it's nice to have its own folder so that, that stuff doesn't just kinda literary your desktop. Alright, closing this back out, Let's go back onto QuickBooks. Now, even though we now have the 2021 version, they do update even the latest version from time to time. So even if you just downloaded it, you probably want to make sure that you've got the latest version. So I'm going to go and also note that if this is the first time that you set up QuickBooks itself, you might have to use the registration number and whatnot that was given on the QuickBooks tab over here in order to register the license number and product numbers. So just remember that I'm going to close this back out. Then we'll go to the dropdown and we want to update desktop. So I want to update QuickBooks Desktop. So I make sure I have the latest version in place because again, I want to make it as likely as possible that this will go smoothly as possible. We will update it now and then I'm going to get the updates. If you have substantial updates, then this may result in you needing to restart the program itself or possibly the entire computer. If you don't have substantial updates, then we can just close this out and continue on. Next we go to the company dropped down and then we're gonna go to export your company file to the QuickBooks Online. So company dot drop-down, export your company file to QuickBooks Online. So then we have the option to move to an existing QuickBooks file or to setup a page file. But we want to try 30 day free trial for our practice problems. So I don't want that 30 day free trial. I want to check this one off. It's not quite as boldened over here. One of the problems with the conversion oftentimes will be the inventory, because inventory for the desktop is in weighted average method versus first-in-first-out for the version online. So I'm gonna go ahead and say yes here and then pick up the starting date. Would want to convert it. I'll just pick up today as the starting date when the change will take place. And then I'm going to say save it and continue, Save and Continue. That's one of the areas will, will basically be checking or you want to be careful of if there's some kind of difference with the inventory. And then we could say, Do you have a QuickBooks Online account? If you do, then you say yes, you still may be able to sign in with a 30-day trials considering this as a new company file where at different company file. And if no, then you're going to select know over here it creates a company file. I'm going to go ahead and fit. Fit, yes. Sign me in. We then have the email and password and then I'm going to have the company name for my company name as the get great guitars transfer from desktop company file. And then we're gonna go down here and upload. Depending on the size of your file, upload process can't take some time, so give it a little bit of time. Just note also that this software for QuickBooks to do this upload has been interfering a little bit with my recording software. So if the audio is not quite as good as it has been, then that's kind of one of the issues. But in any case, here we go, we're gonna say good it got it. So got it. After a little bit of time. And again, that does take a little bit of time. They're going to email USA. We've emailed us, we've got an e-mail here saying, congratulations, your data is now available on QuickBooks Online, we think, and go ahead and complete your setup. So I'm going to click on the complete set up, which should be a link. Once that loves you into your account, you may have to finalize a couple more questions here, including, what's your role at your business? We're going to select owner for our rule for our practice purposes here, do you have an account or bookkeeper right now? I'm going to say no, we do it ourselves at this point. And then we're going to say, great, We'll be with you every step of the way. So I'm gonna say, Great, All set. And there's our data set up here. Then you're typically going to want to double-check your data that's going to be on the online to what you have on the desktop version because there could be some issues with the conversion, especially with things like the inventory item that we talked about. So welcome to QuickBooks Online. So I'm going to say, Okay, and you could take that. Let's go tour. I'm just going to close out of it myself. And then once again, you have this on the online version and you wanna kinda check it to what you have in the desktop version. You can then run reports on the left-hand side, the main two reports, those being the balance sheet and the income statement, which are typically going to be up top in the favorite reports. So we're going to say favorite reports. I'll open up the balance sheet type of reports. And then let's run that from here will run from 101 to one to 1231 to one, and say run it. So that's what we have in our data. Thus far, we can go to the income statement. I'm going to duplicate the tab. Right-click. Duplicate the tab up top. We'll talk more about right-clicking and duplicating tabs as we go, but that's a nice feature to have. And then we go down to the reports on the left-hand side and then open up the income statement. The other way you can kinda check that this is with simply running a trial balance type of report in both softwares and checking it. They're running this from 0, 1, 0, 1, 2, one to 1231 to one and run that report. I'm going to close up the hamburger hold down Control. Scroll up just a bit and then it once again, you can run through these numbers, double-check them to what is on the desktop version. And if there's any differences in them, then you can kind of drill down and see what those differences are. Working in the practice problem here, we should be able to mainly push forward with it. Note that again, one of the problem areas that are going to be in the transfer could be with something like the inventory items, those being a separate method from the desktop to the online version. Desktop being weighted average, online version being the first-in, first-out method. But in any case, that's going to be the process. 4. 11.03 Budgeted Income Statement Excel: Quickbooks Online 2021, budgeted income statement with the help and use of Excel, Let's get into it within two. It's QuickBooks Online 2021. And we are in our get great guitars practice file. We're going to be exporting our information from QuickBooks to Excel that we can then use to build our budgeted information, which we will then take and put back into QuickBooks so that we can run reports with it. So we're going to do this by going into our tab up top right-clicking on it, duplicating that tab, I'm going to do that once again, right-click on the tab up top, duplicate that tab. While that's thinking I'm going to go back to the first tab just to remind us that the actual process of the budgeting process within QuickBooks will be in the COG up top. And then we would go down to the tools area. We want to go to the budget line items, then add the budget here, and then we have our budget team information. However, in order to get the information to do the data input into the system, we're going to export reports from QuickBooks to Excel and use it to generate the budget and then do the data input for the budget into QuickBooks, so that we can use QuickBooks to do what it does well, which is generate reports with the data that has been input. Let's go to the tab to the right this time and open up our trusty trial balance over here. I'm gonna go to the reports down below to do this. And then I'm gonna go to the trustee trial balance, the good old trial balance, open that up and we're going to arrange, change it for the data that we have in here, which is two months. So it's going to end on O2 to 8-to-1. Run that report, close up the hamburger, hold down Control scroll up just a bit. And so there we have it. Now I'm gonna go to the tab to the left. Now if I go to the tab to the left, we're going to open up then go into the reports down below looking at the income statement, the income statement. So I'm going to go to the profit and loss, which is also known as the income statement pretty much. And then I'm going to end date it 02 28 to one and run two zoomed in here, the one-to-five, That's where I want to be and then I'm going to close the hamburger. Now the starting point for our budget, we have the information for 2021. All we have as January and February. So instead of using last year's numbers, 2020 numbers, which we don't have because it's a new company or new data in this salt, or at least therefore we're going to use what we do have, which is the first two months to project out to the end of the year. So that's going to be then our objective. We can't start this by basically exporting the data that we have either if we had the prior year, prior your profit and loss, or we can take the data that we have, which is the current two months that we're going to use to project out forward. Now if I do this with the profit and loss, however, I've got all these subtotals that I don't really need. I don't really need them for my budget. I just want the straight data input. So I prefer to use something like the trial balance as my starting point. So I'm going to take the trial balance for this two month time period. I'm going to export it to Excel and then I'm going to start to format my Excel worksheet so that we can use it for our baseline budget for the year of 2021. So we're going to hit the drop-down to do that, I'm going to go drop-down and open it up in Excel because I'm in Chrome, I have it down here, so I'm going to be opening this up in Excel here. And then we'll do some formatting in Excel. And again, I know this isn't an Excel course that will provide this information to you if you don't want to do the formatting in Excel. But I think it's useful just to see how you can export data and then format it and then import data and the use of when you want to use Excel possibly, and when you would want to use QuickBooks. So I'm going to hold down Control, scroll up just a bit. We're going to save this. I'm gonna go to the File tab, go to Save As, and we'll put this into our folder. I'm going to call it budget. So we'll call it budget and then we'll save that. Okay, so I'm gonna do our same kind of thing we did last time with our with our adjusting entry worksheet or similar thing. I'm going to put this in the format of debits and credits. So I'm gonna, I'm gonna take my data and you might want to actually copy the tab down here. To copy the tab I can hold down control. And then drag this tab, left-click and drag it. And then you have a copy of it. So if you mess anything up, you can kinda pull the data from the copied tab. And so what I'm gonna do here is I'm going to hold Control scroll down just a little bit more. And let's delete the headers so I don't need the headers, so I'm going to just remove those entirely. Going to remove the headers, delete those. And then really I don't need any of the balance sheet accounts at all. I really want is the income statement accounts. So I can then go down here and say, maybe I just want to remove everything down to the, to the revenue accounts. So that's down here. That with unemployment, Here's the equity. There's my first revenue account right there. So owner's equity on out. I'm just going to remove all this. I don't need it. I'm going to just scroll up and remove all that, delete that. Okay, so that is gone. The total column, I'm going to remove the total column. I'm just going to delete the total column. Don't want the total, delete that. And then I'm gonna get rid of this date thing down here too, don't need that. So then this second now we basically have an income statement. These are all basically the expenses. This is the expense side and this is the income side. So I would like to make all the expenses negative. So I'm not going to use debits and credits here, but rather a plus and minus kind of format. And I'm going to put all the expenses as negative so that I can do this whole thing in one column. So to do that, I'm gonna, I'm gonna to easily do that. I'm going to right-click here and I'm going to copy this. I'm going to copy this whole thing. I like to test it out on some other column, so I'll do it over here. And I want to paste it in a special way. I'm going to paste it. But it's super special. So I want to go down here and go to the other specials. And then I wanna go down and I want to subtract it, making it all negative. So save that. And there it is, it made them all negative. That's what we want. So I'm going to copy that. Or let's cut it. I'm going to cut it. And then I went Control X to cut it. And then I'm going to paste it right on top here. So now I've got all these numbers and their negative now. So that's nice. Now I want to format the cell a little bit different. Notice this is Arial and ate up here. And over here we're at Calibri and 11, I don't want those two different formats. I'd rather have the Calibri and 11 personally. So I'm going to keep that. I'm going to put my cursor on some cell out here, go to the Home tab, clipboard, format paint, and then paint the entire worksheet so that now it's all Calibri 11. Now I'm going to format it the way I want to format it because this is my worksheet and I'm going to format it the way I, and I'm going to right-click to do that. Go down to the format cells down below. And then we're gonna say I'm gonna make it currency and dollar sign. No dollar sign. And then let's do, I don't really need the pennies. I'm going to take away the pennies because this is a budget. So I don't really need like pennies. And then I'm going to make negative numbers, read like that and then save it. And so there we have it. And now I'm just going to pull this stuff into the same column. So I'm just going, I could highlight it one way I can highlight it, grab the side of it like this, grab that left-click and drag. It's doing the same thing to hit this one. And I say Control X or cut and paste is actually the same thing as dragging and dropping, which seems kind of weird, but it's the same, same thing. And this is going to be the net income equals the sum of this should be the net income. There's the net income. Hopefully Let's check it out by double-checking it to what's on QuickBooks over here. So if I go back to QuickBooks and go back to my P, P, and L here we've got the 696085. And notice we got rid of all these subtotals, so we've just got a nice clean just just the numbers reports 6.85960. And then back here we are at the 696085. So this is the net income. Net income. So there we have that. I might want to make this like a different color. Maybe let's make this like black and white down here. Black and white to say that's like my, my total column. And then up top we might want us another column. So I'm going to, I'm going to add another row. And so I'm going to use these numbers to project out into the future. So I'm going to, I'm going to add a grow up top, right-click and insert. So now I've got some header, a header row. So this is, this is Jan and February, or let's just call it our baseline data, two months. So this is two months of data. And then I'll make this up top black and white too. So black and white. And let's center this. I like to make the whole thing bolded for some reason. So I'm going to make the whole thing Bolden, which means you can't make anything extra special bold because everything's bold, but I like it all bolded. So then, and then we're gonna say, I'm gonna use this to basically project out. I'm going to leave another space here just so I can see that my projections a little bit different. And then I'm going to say this is going to be January, February. Once I have two months, I should be able to drag and drop this in. Excel should be able to see the routine here. So the next one should be March, right? March, April, May, June, and so on out to December. There we have that. Let's go ahead and then center this Home tab Alignment center. And then I'm going to font it, make it black and white again. So there's our header column. So then our starting point is going to be straightforward. This is two months. So I'm going to start off just predicting that one month would be that divided by two. If it was if this was 12 months for the last year, we could take that divided by 12, or we could take the actual data by month from the prior year and export that and use that as our starting point. But really I want to kinda, I kinda wanna kind of make it all even to start with right? And then go in and think about the changes that might be happening from month to month. What kind of fluctuations will have from month to month? So I'm gonna take this, I'm going to say this is going to be equal to this divided by two, equal that divided by two. And then I want to, I want to save it on the rest of the data. I could do that a couple of different ways. I could say this is going to be equal to this and then drag it on over which I commonly do. Or we could say make an absolute reference. I could double-click here and say that number, I want to F, I want to F4 on it, make it an absolute reference. And then I could drag this, that I can drag this over this way and I'll have to absolute reference in this method. I'm going to undo that. I kinda like the first item because note that I'm gonna do this all the way down. This equals this divided by two. And I don't really want to make an absolute reference or even a mixed reference. I could make a mixed reference because I want to drag this down. So I'm going to drag this down like this, and that'll give me the, those numbers, right? And so all the way down this divided by two. And then I like to go to the second tab and I want this to be the same. I'm just going to say this equals the same thing as the prior tab equals the same thing. And then I can copy that down pretty easily. Like so. And I can also take that formula and copy it this way pretty easily. So without the absolute reference, very simple type of things, I don't have any absolute reference. It's kind of, uh, they're all linked together type of thing. So then I can copy this all the way across to December to December, like so. And so now we have the same data, the same starting point. Now I usually will typically put a grid around this thing. So I'll put a grid around it. Home tab, font group and then Griddify it so that it is gratified. Maybe put a grid around here to home tab font Griddify. We could probably make this little end on the white. We have so much space here, I can move that down. That's kinda not necessary, totally unnecessary. And then we can have our net income down here, which is going to be equal to, of course, the sum of all of this and the revenue is positive expenses negative. There it is, we can make this black and white. This is our bottom line number, bottom-line number on the black and white down there. So that would be kinda like our starting point based on, based on what we have thus far. And then we can go back in here based on what we know and possibly make changes to this data. So let's go and think, okay, maybe there'll be some alterations on these and think about what kind of adjustments we might want. Now when we think about adjusting these numbers, notice the items down below on the, on the expensive, some of those will just be the same and those be fairly straightforward. But the revenue is obviously sometimes where we're focused in on and we're hoping that it will basically go up as we go forward. So for example, let's say we think our guitar lessons are gonna go up by 10 percent on, on each month because people just learn about as the word gets out that we're like, obviously really good and you know, everybody loves us. So they're going to, it's going to ink. We might advertise too, but we're going to increase it by 10. So what would that be in January, we're going to say that we have the 41 to five and then it's gonna go up by 10 percent, which is 0.01, which would be another 4125. And then I would add that to the 4, 1, 2, 5, and there we have it. But I'd like to do that a little bit faster. So we could say, let's take 101% plus the point 0, 5, the point, I mean plus the 10 percent 0.1, which is 1.11%.101110, in other words, times the 4, 1, 2, 5. And that'll give it, that'll get us there to that, 45, 37. So let's do that here. Let's say, we say, okay, let's say this is going to be equal to the prior month times, and I'm going to say 1.101110%. So we think it's gonna go up by that amount there it is. Notice that everything else changed right after it. Because, because this is equaling the prior cell now. Now I want to do this. Same thing though. I want to, if I pull this cell over, notice what it does is it takes the prior cell times 1.1. If I pull this over, it's gonna, it's gonna do that all the way across. It's nice formatting so I can just pull this over and then it'll just gradually, it'll just increase 1.1 the whole way across. So there we have it now we've increased them all by, by 1, by 10% each month. So to increase by 10 percent each month. All right, so we might do the same for our rental or rental here. So let's do the same thing here. We're going to say this is going to increase, let's say by 5%. We think the rental income is going to increase by 5% because people were going to inspire people to rock and roll and take our, rent our band equipment. So we're gonna say this is going to be this times 1.05 or 105%. There we have that. And once again, I'll just copy it across. If I copy it to the next cell, then if I copy this to the next cell, then it's going to take the last cell and times 1.05 and I can cut and then it's gonna go up by 5% all the way out to December. So there we have that, so that's going to go up. That's what we think's going to happen. And then next. Now we can also increase it in a different way. We might say, well, maybe this one, I think it's not going to increase by a percent. Maybe I want to increase it by a flat amount, like a $1000 or something like that. So this is going to be my starting point. Maybe I think this is going to be increasing that plus $1000. Now I could of course think of that as a percentage increase, which it might be useful to do in some ways like a $1000 increase, what's going to be the percentage increase, but we can use a flat amount, of course to do that. I could do the same thing all the way across. If I use that formula, if I copy this across, takes the last sale plus another $1000 that we think we're going to be increasing by. So I'm going to pick that up. So we can, we can increase in that format as well. Then we have the service items here. So now let's keep this service where it is. I'll just leave that where it is and let's go to the cost of goods sold. The cost of goods sold is going to be related to typically the sale of the product because that's the cost of the inventory that we're selling if we sell inventory. So typically we can kind of tie this out to the sales line. We could say, all right, well, if I pull this out a little bit and I just look at my percent here, I can say, well, we have the cost of goods sold. If I look at the percent, is this divided by the sales line up here? And if I make that a percent, if I percent of phi that bring it out a bit so I can see it that 78%. So let's just round it to 80. We think it's going to be 80 percent cost of goods sold is going to be 80% of the sale of the products that we sell. So I'm going to just take this whole thing. I'm, I'm gonna say this is going to be negative, so it's a negative number of this number, the things that we sell times 0.880% So we'll just change that to 80 percent and then I can just copy that all the way across because it's once again going to take the line item of the sales times the 80 percent. So as the product sales go up, this should go, go up as well because that relationship will remain the same. So there we have that. So those those are copied across. Now most of the rest of the expenses are usually going to be somewhat standardized. So for example, bank service fees, this is usually a fairly small amount and we might just keep it as is. It should be fairly constant throughout each month. So that's pretty much where it will be depreciation. Then this could change depending on whether we think that we're going to be buying more equipment. So we don't think we're going to be buying any equipment, any more equipment in the next year, then depreciation will be pretty much the same if we're using straight-line depreciation. If we're using some kind of accelerated method, then you'd want to use like a double-declining method or tax depreciation. Then you then you might have some different you might have to check your depreciation schedules to see what that type of depreciation would be. But if we're just allocating using the straight line, you would think that that would be much the same. The insurance. Once again, if we're on an accrual basis method, you would think the assurance insurance would be allocated basically the same over the months. If you're using a cash-basis method, then it depends on when you're going to be paying for the insurance here. So we're kinda considering and accrual-basis method. You might want to do two budgets really, you might want this would be my budget for the budgeted income statement, which I would put more on an accrual basis. And then we might have another budget, which is just simply a cash flow budget, which is just measuring. Do we have the cash flow we need to keep forward as well. Then the Internet, we're talking like an Internet service again, that would be pretty much constant. You would think from month to month, not big changes unless you have a lot of growth or decline in terms of size, the office supplies again, unless there's some big changes, would be fairly constant. You would think the payroll taxes and wages, unless we're planning on hiring more employees, at which time we would increase that when we think that's going to happen, we're going to keep that the same telephone, same thing unless we're growing or or pulling back a lot you would think would be a somewhat the same, same with utilities, the gain on the sale of investment. This is something that we probably wouldn't expect to happen again, that's why we put it down here at the bottom. So we had some extra cash, we put it in the investments and then we sold it. But we're not in the business of selling stocks and whatnot. So this, I would probably just simply delete this and say, I don't think that's going to happen again. And then the interests, if we if we have the same kind of loans out there, you would think the interests would be somewhat standard. But if we plan on paying off the loans or taken on more debt than you would think that the interests, you'd have to change that as well. Other miscellaneous this is we don't even know what this is, is a fairly small amounts, so we're going to keep it as is as well. I'm going to total it up on the right-hand side now. So I'm gonna go to the right, I'm going to make a total column. Total. And then we'll just sum this up so we can see where we stand on the year, summing up January through and then I'll just copy that on down. Copy that on down copy that Roger out. And then we're going to go up top. And I'm going to, I'm going to copy the formatting, go into the home tab, Format Painter formatting, and then go down. I'm going to copy this across. Let's copy this across. And so there's our, there's our Indian numbers. Let's go ahead and total that. Put the brackets around this and maybe we make this black and white as, as well or something like that so that we can see that that's our, that's our total column. So just so it stands out differently at possibly. And this is not, notice that these down here, I don't really want to sum the same way. Like this is picking up the one to the left of it. I'd rather sum this up vertically. So I want to sum this up vertically. So I'm going to sum this, this way. And so that should be proper so that we'll see a difference in the net income as we show it. I'm going to copy this all the way across. And this is kind of our double check number over here. So now we've got this 90,414. If I sum up this way too, I should, I should get to the same number. So that's kind of a double-check and that works a lot of times with a standard Excel worksheet that's in a similar format as this. Okay, so now we have our worksheet that once again, I think it would be a lot easier to do this kind of adjustments in Excel to do the actual ideas are projections of what you're thinking are going to happen. And now we'll take this data and we'll put it into QuickBooks. Why? Because QuickBooks is not the tool for us to come up with the budget. Quickbooks is the tool for us to then run reports with the budgeted information. We'll put this in place. We've already ran January and February. So then we can imagine a situation where we put the budget in before January and February. January and February then happened. And then we can analyze what we projected to happen against what actually happened. And we can imagine then going forward, having the budgeted information going forward from that point in time. So that's what we'll start with next time. 5. 11.05 Budgeted Income Statement Data Input: Quickbooks Online 2021, budgeted income statement, data input. Let's get into it with Intuit QuickBooks Online 2021, who we are in our gut great guitar practice file. We're gonna do the data input for the budget. Let's first start off by opening up the profit and loss in another tab by duplicated the tab up top right-click on the tab up top. Duplicating the tab up top, we're going to be opening up the P&L profit and loss income statement by going into the reports on the bottom left-hand side. And then we've got our P and L will do the good old range to the change up top ending at 02 28 to one, running that report, closing the Hamburg or holding Control, scrolling down just a little bit to get to that one to 5%. So this is the starting point that we basically took. We took it in a trial balance format, we export it, it then to excel over here so that we can actually project out what we believe our budget should be. Now we're going to take this information and do the data input for it, putting it back into the QuickBooks to software this time in the budget section by going to the first tab, that budget, I'm going to hold down Control scroll down just a bit, bringing it to that 110 is under the COG up top. So we're going to go the COG up top in the tools section, down to the budgeting area. Into the budgeting area, we're going to add the budget, adding the budget. And we can call it budget. I'm just going to say budget one. Budget number 1. And we're gonna say this is going to be for 2021. It's going to be a monthly budget as opposed to quarterly or yearly. And we're not going to pre-fill any data because we don't have anything for the prior year and we're not gonna do any subdividing action here. We're gonna keep the default as don't sub-divide. Then in essence, we have our income statement line items that's grouped in the subgroups down below. And we're just going to go right through and into our data. Now if you have two screens, it would be a lot easier to do so. So you can put this on one side and the other one on the other side, but we only have one screen. So we'll do this one at a time. I'll try to like kind of green a phi, the top ones, there'll be a little bit more difficult for these top lines because of course, those are changing here. Whereas when we get to the expense line items, those are all the same for the most part. And so those will be like easy. So let's do these top ones up top. Let's make that green, green a phi, that one. So we're in the guitar sales were looking guitar sales now notice some of these income line items we might not be using. We've got all these income line items we're not using. We could go into Excel and delete some of the accounts that are in excess. We entered a bunch of data already. If if QuickBooks gave us some accounts that we don't really need, we might want to go in and clean them out, make them inactive, for example, so that they don't populate here. Or in other places, get in our way and have accidentally record to them or something like that. So we've got this information I'm gonna go, I have to go next. If we're, I can do the data inputs, I'm going to say Next. And now we can do the data input. Okay, So now we've got our data input fields. I'm going to go down to the guitar information down below. And this is going to be for one to five. That's our starting point for one to five. And so then I can't copy it across by hitting this item, but I don't want to copy it across because these are ones that are going to change. And there's not really a great way within Excel, I mean, within QuickBooks and this system to add the change to it. So I just gotta do the data input. So I'm just gonna do the data input on it. Now February's can be 45, 38, so 4538. So 4538. And then I'm just going to tab across. And then if you had two screens, this would be a lot easier. So I'm going to keep going all the way across here and then and then we'll see the total once we have completed it should be at that. So now I've magically done that data input here, and it ends up at the eight, 8 to 9, which should tie out to our Excel worksheet, the 88 to 09. So now I'm going to ungroup unify these. I'm going to bring this back to the normal item here and then we'll green a five the next one. And this, I'm going to format this up top this time I'll just reunify what we're looking at, which is right here. Reunify those. So I don't mess up the formatting anywhere else. And then we're going to be picking up. I could also hide these cells. So maybe I'm just going to hide these two cells so I can see the more columns right-click and hide, do our data input. And so now we've got then the rental income, the 750, same kind of issue. So I'm going to say all right, now we've got the rental. So I'm going to start 7500. And then again, if it was all the same, I could copy it across, but it's not. So I gotta go. Okay. This is going to be the 788. And then I'll continue on with this. So I've entered those. There's our 11938 and if I go back on over here, we've got the 11 938. So I'm going to go and ungroup unify those. And this will become a lot easier once we get to the expenses. So then we got the the sale of a product. So I'm gonna do this one. And I'm gonna say that once the 20000 sale of the product, 2004, seven So I'll go, this one's going to be down here, 200 over 47. And then the next was 21047. So now we're at 21 over 4, 7 and so on and so forth. So there we have it and we're ending out at the 306, 560 for 30, 65, 64. We have the 30, 65, 64 here. Let's ungroup this and go to the next one, which should be much easier because it's the same all the way across. So I could just do the copying there, there's a service item doesn't change. So let's go and do that one. That's the 33, 45 for the service. So I'm gonna say serve as one is going to be the 334 five. And that one I can just copy across. And there it is, go into the 40000, 140. So I'm going to make this a little smaller so I can see it on one page, 40,140, there was that one cost to goods sold. That one's going to change because it's going to change in relation to the sales. So this is the last one where I think we got this kind of weirdness that we have to do. So I'm gonna go cost of goods sold. And notice that the kinda screen change, changes. They're trying to help you out. I think when it does that, but it's a little annoying that it does that. I'm looking for the cost of goods sold here. Other income cost of goods sold. This is the one we want. I'm going to be picking up then the 16038. So we've got 16, 0, 3, 8 tab, tab. And then that one changes then to the 16, 8, 3, 8. So then we've got the 16, 8, 3, 8 and so on and so forth. So there we have it we're at and it'll say change the last coupled to a seven just because of rounding doesn't throw us off or so with a 245, 251. And then that totals up to the 245 251 for the cost of the goods that are sold. Then we've got the bank service charge. Everything else should be much more easy down here. So we've got the bank service charge. So let's scroll down, see if we could find that there it is. And that's going to be simply the 18. And we could just copy that across. 18. Copied across these ones are more fun because we can just copy and across. And then we've got then the depreciation on the equipment. Depreciation equipment right there. And that's going to be for the 69 and copied across 69, copy it across. And then we've got the furniture depreciation on the furniture. So that's going to be the 11, 6, 7. So we'll just say 1167. Copy it across. And then we've got the insurance 458. So the insurance the insurance down here. Scroll down again and go to insurance. And that's going to be then the 45. So 45, eight. Copy it across. And then we'll go on internet 90, Inter net in touring the net, $90 that were they call it internet because you're entering like the net on the web. I can't. And then we've got the office supplies. Two hundred fifty two hundred fifty office supplies. So where's the often though they are there hidden with is 250 to 500 office supplies, copy it across. And then we're going to go down and say, now we've got the payroll taxes for 33, for the payroll taxes. Taxes for 33. Copy it across. And then we've got the payroll, the 53835383 on the payroll wages, we're going to call it 53 A3. Copy it across. Then. We've got the telephone 363363 on the telephone, 36 3 on the telephone. And there it is. So we've got the 363 copied across. Notice all these other kinds of cells that we're not using. These are, these are accounts that we haven't really put anything too. We might want to go in and make them inactive because they were given to us by QuickBooks when we set up the account. So you can see how they, they make a, make it a little bit difficult to do some things. Utilities are a little bit more burdensome. 6, 3, 4 for the utilities. Utilities 6, 3, 4, copy it across. And then next one we've got is the the interests, the three 26, this is going to be in the other items, the other category. So interest down here, and that's going to be the 36. What did I say? 3, 26, 32, 6. I would have typed it in there. Bass backwards if I didn't double-check it. That's why two checks is okay. So other miscellaneous 75. 75 and the other miscellaneous 75. Copy it across. So there we have our our totals up top. And then if I if I scroll on down, the total down here is the 90 thousand for 08. So 90,408 doesn't quite tie in. We got we got 909,408, but that looks like it could be rounding. Right. Is that around in different $6? I'm okay with that. I'm okay with that. It's a budget. Okay. It's a budget doesn't need to be exact because that's the point we don't budget. So let's go ahead and save that. Save it. So the budget one has been saved. All right, Let's save it and close it then. And so there we have it. So then we've got our budget here and now we can generate, Of course, reports on the budget. If we want to edit it, then we can edit the budget over here as well. So now that we have in place, we can now compare what we have in the budget side of things to what actually happens over time. Obviously, we are imagining in this case that we put the data input before 2021 and now two months of 2020, 1.5 past that being January and February. So we can kinda do a comparison of what we think should have happened to compare it to what actually happened. And that's one of the major components or uses of putting this budgeted information into the QuickBooks system. 6. 11.07 Budgeted Income Statement Reports: Quickbooks Online 2021, budgeted income statement reports. Let's get into it with Intuit QuickBooks Online 2021. Here we are in our gigabit guitars practice file. We're looking into the budget reports, noting that before you can run the budget reports, you have to enter the data into the system for the budget, to enter the data into the system for the budget. In the prior presentations, we export it some data that we had from the past to Excel to help us to project into the future what the budget would be. Then we took this information that we generated within Excel and put that into the QuickBooks system by going up to the COG up top in the tools section, we went down teen section here. Here is going to be the budget that we have entered. We entered this information into the system so that we can then generate reports from the QuickBooks system. One of the main reports that would be useful would be comparing the budget versus actual. So we're imagining then that we enter this information for the full year before we entered any data because we're budgeting into the future. And now at this point, at time, two months have passed. So we have two months of actual data that the in January and February, therefore, we can run a report basically the budget versus the actual for the January and February and then project out into the future what our plan will be for, of course, the rest of the year. So if I close this backup, then let's go ahead and duplicate some tabs up top. I'm going to right-click on the tab up top, duplicate that tab. And let's do it one more time. Go into the tab up top, right-click and duplicate that tab again. Go to the report to the right and we're going to go down to the reports now. So, so we have already created the budget, so now we can go ahead and find the budget. Normally, when I look for the budget, I just type in here budget and that'll give us our budget. We've got the overview and the budget versus actual, but they're also also can be found down here in the business overview section, where we have the budget overview and the budget versus actual. Let's take a look at the overview first. So we opened up the budget overview. This is what we have then this mirroring the data that we put into place. So this is the budget for, this is the name of the budget. If we have multiple budgets, we can then put in the multiple budgets and choose the budget that we want to be running. We have, of course, basically the information, just like we put it into the data input screen, but it's not including items that have zeros in it. So we have our January, February, and so on through the December budget. So that's going to be our starting point kind of information. And then when time passes, then we can start running the budget versus the actual. So if I have any changes on this budget or something like that, if I want to adjust it, then of course, I can go back to the first tab, go into our items here, and then make the adjustments to it. Then as time passes, we can run the budget versus actual. So let's go to the second tab up top, go down to the reporting on the left-hand side. And this time we're running the budget versus the actual, what actually happened to the budgeted things that we thought might happen. So we're gonna go budget versus the actual. And then I'll close up the hamburger up top. And now we've got the budget versus the actual much more, longer report due to the fact that we're gonna have three columns for each month. Now, the two months that have now passed for us where we have actual data, meaning we projected what was going to happen in the budget. We're imagining that we projected what happened, then, what actually happened, happened. And now we can make that comparison for January and February. Let's just take a look at January 1st because then we can look at one month at a time. So we'll go, if we pull out the trusty calculator, then to calculate that percentage, we're taking the what actually happened, which is a 33954 divided by the budget to 0000 47. And if we move the decimal over or multiply times 100, and then we're going to get the 16, 9.37 there. So that's going to be our percentage calculation. Obviously this being our first budgeted information. If you're starting out the company than your actual numbers will, might not be too close to the budget and your budget may be way off. But you got to have a starting point, of course, to be thinking about the budget so that you have something to shoot for. And then as your business becomes more routine, then you will be way better at knowing what's going to happen. From period to period. You'll be able to set up your budget. So no matter where you are, if you have no idea what's going to happen in the future because this is kind of new type of process, then you want to set your budget because that's still gives you that baseline, knowing that you're probably going to be way off of course. And then you want to basically kind of narrow that down after you do it for a while, then you can have a pretty good idea what's going to happen. Then you'll get a better idea what's going to happen like on a seasonal basis, for example. And that's in, you can really refine that down, that understanding down a whole lot better if you do an actual budget. And once again, why do you put it into the QuickBooks system? Because you get this basically this report once the budget has passed. So you probably want to generate a budget like in Excel, because Excel is going to help you to actually think through the process of putting together a budget and then take that information, put it into QuickBooks so that you can then do these comparative reports. And we started to say, Well, I was way off for January. What can I what kind of adjustments was was that what happened? How does that help me think about it in the future? Okay, So let's print these out. I'm gonna I'm gonna take this just for the first quarter. So the first quarter we have ended down 0331 to one. And then we'll run that report. So we've got the first quarter for our budget. Budget versus actual report was to our standard kind of formatting to it. And then we'll print these items out. So I'm gonna go back up top, going to customize this report. And we're going to say, let's get rid of the pennies. Make the negative numbers bracketed and red. And then I'm going to go down to the header and footer. We're going to remove the date prepared, time repaired and report basis. Run that report. And let's go ahead and print this to the PDF file. And then we will also export it to Excel and put it into our Excel reports as well. So I'm going to go all the way to the right because that's where I can see my little icons. Notice if you have a really long report like that, you might say, hey, where did those icons go? There all the way to the right, you gotta go cooler right here. And then we can hit the drop-down. We've got the PDF. Now this is an area where it's going to be a little difficult if I want this wide report, you have a little bit more limited options to be printing it out. They kind of adjusted the size of the report and they did kind of make it fit. So they made it fit on one page. But there's different ways you can make something fit on one page, right? So you have some optionality here to fit it on one page. But if you export it to Excel, you have some more options that you might be able to do it. So that's another reason why export it to Excel could be useful. I'm going to save this one. And then it's going to generate down here, we're going to do the good old dragging and dropping into our folder so they could hold drag and drop. So that's the whole reason I did this whole presentation just so we can say drag and drop. So I'm going to open up then our folder. I'm gonna put it into our February numbers here. So I'll put it into our February numbers since we're kinda continuing on. And so I'll make this a little bit larger so I can do the good old drag and drop. And these icons are too big. Let's make these like large icons and not super-large. And then drag and drop, drag and drop. All right, let's do the same for the second report. I'm going to maximize the screen backup. We'll do closing this out. Go on over to the next report and scroll back up top. Let's do our customization here. This is the overview report. We could of course do the same kind of range changes up top. So we've got the butt. Let's do this one for the entire year this time. So I'm going to customize the report. And then I'm gonna go to the sense I'm going to make it a negative numbers, as has been our tradition. Here are format, standard format, day prepare time, prepare, removed, run the report. So there we have it. And now let's go ahead and export it to a PDF or print it as a PDF. So export as a PDF will save as a PDF here. So we have that. Then we're going to drag it, we're going to drop it. We're going to say, Come over here, drag, drag, drop, and there we have it. I've been working out a lot so I can drag it a lot faster. My muscles are bigger so I can drag dragging tons of files. So now I'm gonna go back to the first tab over here. Let's, let's export it to Excel now and I'll put it into our other Excel worksheet, the one we've been working on, Let's put it into this Excel worksheet Report. So I'm going to open up that report and then we're going to take the guts out of the budgets and put it into this Excel reports so we can put everything on one, on one PDF file with the Excel report using the PDF printer. So here's our Excel worksheet. I'm going to add another tab to it, and then I'm going to end. Then we're going to do the old export to Excel some back over to QuickBooks. We're going to export this to Excel. It's export it to Excel and then open it up. And then we're just going to copy the guts out of it and paste it over into our other reports. So we've got our Excel report here. I'm going to enable the editing up top so I can edit it. Then I'm going to hit the triangle and Control C. So we copy the guts of it. And then we're gonna go back over here. And this is going to be Control V and sell M1 gotta be an M1 cell. And this is going to be the budget versus actual. So I'm gonna say budget versus actual. Now this probably doesn't fit on one page. Now I got more formatting options down here in Excel that I can go to the second tab because when it kind of auto fits it on one page, it's sometimes makes the font one way you could do that as to alter the font size. But that kinda make sure reports not look as good when you compare him together with other reports. So you might want to overhear, you could start and say, okay, well, how can I make this fit on one page, there's my line, it doesn't fit right there. So I could make it landscape. I'm not pretty much have to go to landscape here. So page layout or not landscape. Or or to landscape. Yes, to landscape. So we have that and then this column seems a little long. So maybe I can make that column like a little smaller. So we can, we can do that. And now it's still, it's still going to be fairly large here. So this, at this point in time, we might have to do some other kind of alterations to it, possibly making the text smaller and decreasing the entire rows. So if I select all of these rows, maybe I can make them a bit smaller here. See if I can take them down a bit. So we'll make them a little smaller. A little smaller as literary have that, but now let's do small. So I'm going to undo that. And then we might have to then change basically the size when we print the thing so that we might have to change the scale at this point. So Page Layout scale it. I'm going to try to scale it down here. So if I scale down there, we have it now this is kinda like so, but this is kinda like your last resort on the scaling because once again, the fonts will not match from one report to the other. So I'll do everything else I can to fit it on one page wide. And then I'll resort to that scaling. Okay, so let's do the other one now let's do the other one. So what I'm gonna do is I'm going to delete this, the Excel worksheet because I don't need anymore because we've copied its guts. And then we're gonna go over and open the other one. So now let's open this one. We're going to go to the second tab and do the same thing. I'm going to export it to Excel, will open up the Excel. And then we're going to enable the editing. Because that, that allows us to edit it, which is something we wanna do. And then we're going to copy its guts by going to the triangle up top and Control C. And then we're gonna go back on over to our, where we want to put it, hit the plus button, be in cell A1, Control V to paste it. And this is going to be just a budget overview. So I'll say IT overview, something like that. And then I'm going to go to the second tab to see if it fits on a page. No, it doesn't. I I didn't think it would. I'm pretty sure it wouldn't, but it gave me that little line so I know where we're at now. So then I'm gonna go landscape. In the Page Layout, Landscape it, and that's pretty close. This one might be able to fit on one page, even though it's got all 12 months included in it. So there we have it. So again, we could lower, lower these down, but then maybe I'll just go right to scale it down, scale it down and there. Now about 95. Let's check it out on the page and then let's export it to a PDF file now. So we're gonna go to the File tab over here. And let's go ahead and printing options and see what it looks like with these last two, I want to go to then the whole workbook. So let's print the whole workbook. So here's the comparative balance sheet, the income statement, comparative income statement, and then our journal. So we've got our journals. And then after the journals, we've got there's our CSS a little bit smaller there because I had to scale it down. So it looks smaller. So that's like last resort because it's kinda small now, but I have to fit it on one page wide or altogether together to look at it with any kind of make it make any sense. So, so you wanna kinda, I'll do whatever I can't not to scale it down here and I don't want to auto scale it down. And then when I have to scale it down, I'll do it. Okay, so then we're done. So we're gonna go ahead and print it with acute PDF printer, which will save it as a PDF file. So I'm going to say, okay, printed, it's got the 13 pages. It's going to ask me where do we want to put it? And I'm going to sell tell you where it's going to put it right there and it's going to go into the adjusting entry. I'm overriding the adjusting entry, so I'm going to include the budget in this adjusting entry worksheet. I'm going to replace it here. And then let's check it out. Let's take a look at it. So here it is, adjusting entry statement, opening that backup, closing up the sidebar here. So here we have it. The comparative balance sheet income statement. We've got the comparative income statement and note the size of the text here. Here's our journal report for those adjusting entries, which we didn't have to scale down the journal report even though it's kind of wide. But then when we get down to these, notice these are a little bit smaller on the texts. So once again, they're a little bit smaller on the text. That's why we want to be careful about kinda just fixing everything by toning down the text size, but it looks good, looks readable. That's what we got.