How to create a budget in quickbooks -Nishan Blog

What is QuickBooks?

QuickBooks is an accounting software package developed and marketed by Intuit. QuickBooks products are geared mainly toward small and medium-sized businesses and offer on-premises accounting applications as well as cloud-based versions that accept business payments, manage and pay bills, and payroll functions.

What is QuickBooks software used for?

QuickBooks is a full-featured business and financial management suite complete with tools for accounting, inventory, payroll, tax filing, invoicing, bank account tracking and reconciliation, expense management, budgeting, payment processing, and accounts receivable and accounts payable management.

How to Create a budget in quickbooks?

Create a budget

You can create next year’s budget from scratch, or use last year’s Profit and Loss data to start one.

  1. Go to the Company menu and hover over Planning & Budgeting. Then select Set Up Budgets.
  2. Select Create New Budget.
  3. Set the fiscal year for the budget, then choose either Profit and Loss and Balance Sheet. Then select Next. If you select Profit and Loss, you can add additional criteria, such as Jobs or Class tracking.
  4. If you select Profit and Loss, select either Create budget from scratch or Create budget from the previous year’s actual data.
  5. Select Finish.
Tip: If you rename an account you use to create a budget, it unlinks it from the budget. You’ll need to recreate the budget using the new account name.

Create a budget or forecast in QuickBooks Desktop

SOLVED•by QuickBooks•QuickBooks Enterprise Suite•2•Updated 2 weeks ago

Learn how to use your data to create budgets and forecasts.

QuickBooks Desktop has budgeting and forecasting tools to help you plan and make smart business decisions.

Step 1: Review last year’s data

Before you can set up a budget or forecast, make sure your fiscal year is set correctly.

  1. Go to the Company menu and select My Company.
  2. Select the pencil icon and then Report Information.
  3. Make sure the first month of your fiscal year is correct.

Then,  review last fiscal year’s financial reports.

  • Go to the Reports menu and hover over Company & Financial.
  • Select Profit & Loss Detail or Balance Sheet Detail depending on what you want to forecast or budget for.
  • From the Dates dropdown, select Last Fiscal Year.
  • Select Refresh.
  • (Optional) You can memorize this report for later use.

Step 2: Set up a budget or forecast

Now you have reports you can use to make a budget or a forecast.

Create a budget

You can create next year’s budget from scratch, or use last year’s Profit and Loss data to start one.

  1. Go to the Company menu and hover over Planning & Budgeting. Then select Set Up Budgets.
  2. Select Create New Budget.
  3. Set the fiscal year for the budget, then choose either Profit and Loss and Balance Sheet. Then select Next. If you select Profit and Loss, you can add additional criteria, such as Jobs or Class tracking.
  4. If you select Profit and Loss, select either Create budget from scratch or Create budget from the previous year’s actual data.
  5. Select Finish.
Tip: If you rename an account you use to create a budget, it unlinks it from the budget. You’ll need to recreate the budget using the new account name.

Create a forecast

If you use QuickBooks Desktop Premier, Accountant, or Enterprise, you can also create forecasts to predict future revenue and cash flow. You can create a financial forecast from scratch, or from last year’s data.

  1. Go to the Company menu and hover over Planning & Budgeting. Then select Set Up Forecast.
  2. Select Create New Forecast.
  3. Set the fiscal year for the forecast. You can also specify additional criteria, such as Jobs or Class tracking, but this is optional.
  4. Select either Create forecast from scratch or Create forecast from the previous year’s actual data.
  5. Select Finish.

Step 2: Review your budgets and forecasts

Go to the Reports menu and select Budgets and Forecasts.

Set up a budget

You can set up a budget for an account, or a Customer: Job or Class within an account. Just enter budget amounts for either income, expense, or balance sheet accounts you wish to track.

  1. Go to the Company menu, then select Set Up Budget.
  2. In the Creating a Budget screen, select Next.
  3. Select the fiscal year for this budget.
  4. Select an account for your budget, then select Next.
  5. Select whether you want to separate your budget by Customer: Job or Class, and select Next.
    Note: If you have class tracking enabled you can track budget amounts by class.
  6. Select whether you’d like to add budget numbers from scratch or have QuickBooks use the previous year’s data.
    • If you start from scratch, select Done.
      You’ll see a spreadsheet with an empty amount of cells. Select any of these cells, type an amount, then select Save.
    • If you start from the previous year’s data, select Next.
      You’ll see a sheet explaining QuickBooks will use data from the previous fiscal year to generate the new budget. Select Done.

Update a budget

You can always go back to the budget and make changes to it. Here’s how.

  1. Go to the Company menu, then select Set Up Budget.
  2. From the Budget ▼ dropdown menu, select the fiscal year of the budget you want to change.
    • For an income or expense account: Enter the amount you project for the account for each month.
    • For a balance sheet account: Enter the end balance you project for the account for each month
  3. Apply the changes you need.
    • You can change or add an amount in the column next to the account you want to change.
    • You can enter an amount in the Total column, then QuickBooks will calculate the monthly and quarterly amounts.
    • You can right-click a cell and select an option to speed your data entry.

QuickBooks displays the columns in your budget according to the preferences you’ve set. 

If you change these preferences, you’ll need to refresh your budget to see the new column arrangement. To change this:

  1. Go to the Preferences menu, then select My Company.
  2. Then the first month is the fiscal year.

Create reports about your budget

QuickBooks for Mac offers six types of budget reports. You can create these after you set up a budget. Here’s how.

  1. Go to the Reports menu, then select Budgets.
  2. Select one of the following reports:
    • Profit and Loss Budget Overview:This shows your monthly budget amounts for each income and expense account.
    • Profit and Loss Budget vs. Actual:This shows your monthly budget amounts for each income and expense account including the actual amount you spend. It also shows you the difference between your budgeted and actual amounts.
    • Profit & Loss Budget by Job Overview:This shows your total budget amounts by customer and job for each income and expense account.
    • Profit & Loss Budget vs. Actual by Job:This shows your total budget amounts by customer and job for each income and expense account. It also includes the actual amount you spent on each job and the difference between your budgeted and actual amounts.
    • Balance Sheet Budget Overview:This shows your monthly budget amounts for each balance sheet account.
    • Balance Sheet Budget vs. Actual: This shows your monthly budget amounts for each balance sheet account. It also includes the actual account balances as of the last day of the month and the difference between your budgeted and actual account balances.

Some tips to see how you’re doing against a budget:

If you set up budget items forDo this
Income and expense accounts onlyUse the Profit & Loss Budget vs. Actual report.

1. In the report window, select the Customize button.
2. Select the date value.
3. Select the Filters tab, then filter by specific income and expense accounts, or to just one account.
Customer or job onlyUse the Profit & Loss Budget vs. Actual By Job report. 

1. In the report window, select the Customize button.
2. Select the date value.
3. Select the Options tab.
4. Select the Columns ▼ dropdown menu, then select Total Only.
5. Select the Row Axis ▼ dropdown menu, then select Customer: Job.

To see only one customer or job, select the Filters tab, then filter by name.
Class onlyUse the Profit & Loss Budget vs. Actual By Job report.

1. In the report window, select the Customize button.
2. Select the date value.
3. Select the Options tab.
4. Select the Columns ▼ dropdown menu, then select Total Only.
5. Select the Row Axis ▼ dropdown menu, then select Class.
Customer or job and accountsUse the Profit & Loss Budget vs. Actual By Job report.

1. In the report window, select the Customize button.
2. Select the date value.
3. Select the Filters tab, then filter by name.
Customer or job and classUse the Profit & Loss Budget vs. Actual By Job report.

1. In the report window, select the Customize button.
2. Select the date value.
3. Select the Options tab.
4. Select the Columns ▼ dropdown menu, then select Customer: Job.
5. Select the Row Axis ▼ dropdown menu, then select Class.

To see only one customer or job, select the Filters tab, then filter by name.
Class and accountsUse the Profit & Loss Budget vs. Actual report.

1. In the report window, select the Customize button.
2. Select the date value.
3. Select the Options tab.
4. Select the Columns ▼ dropdown menu, then select Class.
5. Select the Row Axis ▼ dropdown menu, then select Accounts.

Create budgets in QuickBooks Online

Sign in to QuickBooks as a user with permission to access, create, or delete budgets. Then follow the steps for your version of QuickBooks Online.In QuickBooks Online Advanced

Step 1: Review your business’ fiscal year

Make sure the beginning of your fiscal year is set in QuickBooks. You can create a budget any time, but it helps if you start at the beginning of the fiscal year.

  1. Sign in to QuickBooks Online.
  2. Go to Settings and select Account and settings.
  3. Select the Advanced.
  4. In the Accounting section, review the First month of the fiscal year field. To change the date, select Edit.

Step 2: Get your budget data

If you already have your budget data, you can skip this step. If you don’t have any data yet, use your QuickBooks data to get started:

  1. Go to the Reports.
  2. Select and open the Profit and Loss Detail report.
  3. From the Report Period ▼ dropdown, select a timeframe. If you want to use last year’s data, select Last year.
  4. Make sure the beginning and end of the year match your fiscal year. If you want to use data from your current fiscal year, select This Year-to-date.
  5. Select Run report.

Use this info as a guide to create your budget.

Step 3: Download a budget template

Download a budget .csv template from QuickBooks. Use it to create your budget so all of your data is compatible. You can have up to five budget templates:

  1. Go to Settings and select Budgeting.
  2. Select Import budget.
  3. Select the Sample.csv link to download the template. Save it somewhere you can easily find it, like your Downloads folder.

Step 4: Create your budget

Open the .csv budget template in Excel or Google Sheets. QuickBooks uses your chart of accounts and fiscal year months to format the template format.

Enter your budget for each account for each month. Important: Don’t add more columns or rows. If you need more accounts to appear, add them to your chart of accounts before you download the template.

Step 5: Upload your template

When you’re done, import your budget back into QuickBooks:

  1. Go to Settings and select Budgeting.
  2. Select Import budget.
  3. Select Browse and then select the template.

Now your budget is in QuickBooks. Do a quick review.

  1. Give the budget a name.
  2. Review the cells. Make sure the correct amounts are in each account. If you need to make edits, select a field and make changes.
  3. When you’re ready, select Save to save your budget.

Step 1: Set the first month of your fiscal year

Make sure the beginning of your fiscal year is set in QuickBooks. You can create a budget any time, but it helps if you start at the beginning of the fiscal year.

  1. Sign in to QuickBooks Online.
  2. Go to Settings and select Account and settings.
  3. Select the Advanced.
  4. In the Accountings section, review the First month of the fiscal year field. To change the date, select Edit.

Step 2: Get your budget data

You can base your budget on data either from the current fiscal year or from the previous year’s amounts. If you plan to use historical data, run a Profit and Loss Detail report to make sure transactions and accounts look correct.

By default, the report shows transactions created during the current year to date. Here’s how to customize the report to display the previous fiscal year’s amounts instead:

  1. Select Reports.
  2. Find and open the Profit and Loss Detail Report.
  3. Select Last Fiscal Year (or Last Year if January is the first month of your fiscal year) from the Report period dropdown to use the previous year’s data. To use data from the current fiscal year, select This Fiscal Year-to-date.
  4. Select Run report.
  1. Select Reports.
  2. Find and open the Profit and Loss Detail Report.
  3. Select Last Fiscal Year (or Last Year if January is the first month of your fiscal year) from the Report period dropdown to use the previous year’s data. To use data from the current fiscal year, select This Year-to-date.
  4. Select Run report.

Use this info as a guide to create your budget.

Step 3: Create your budget

If you don’t want to start a brand new budget, you can copy an existing one. Go to the “Edit, copy, or delete budgets” section:

In QuickBooks Online Plus

There are special budget reports that help you keep track of your budget goals.

  1. Go to Settings ⚙ and select Budgeting.
  2. Find your budget on the list.
  3. Select the Action ▼ dropdown and then Run Budget Overview report or Run Budgets vs. Actuals report.

The Budget Overview report summarizes budgets by account. The Budgets vs. Actuals report summarizes accounts alongside your actual account totals. It also shows how much you’re under or over budget.

Edit, copy, or delete budgets

If you need to edit a budget, make your changes in QuickBooks:

  1. Go to Settings ⚙ and select Budgeting.
  2. Find your budget on the list.
  3. Select Edit.
  4. Edit each account one month at a time.
  5. To change the time period from month-to-month to quarterly or yearly, select the Gear ⚙ at the top of the budget. Then select Quarter or Year.
  6. Select Save or Save and close.

Copy an existing budget

Instead of starting from scratch, you can create a copy of an existing budget. This helps you jumpstart this year’s budget using last year’s data:

  1. Select Settings ⚙️ and then Budgeting.
  2. Find the budget you want to copy.
  3. Select the Action ▼ dropdown and then Copy.
  4. On the Copy Budget screen, enter the new budget name and fiscal year.
  5. Select Create Budget.
  6. Update the budget amounts as necessary.
  7. Select Save or Save and close.

This saves the copy as a separate budget.

Delete a budget

If you decide to delete a budget, be careful. You can’t recover deleted budgets:

  1. Go to Settings ⚙ and select Budgeting.
  2. Find your budget on the list.
  3. Select the Action ▼ dropdown and then Delete.

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