When you think about financial statements, do you ever feel overwhelmed?
Let me show you how to generate your Balance Sheet Report and use it through QuickBooks. 😊
If you’re looking for the Online version of this video click here
Download the accompanying PDF Guide here: CandusKampfer.com/balancesheet
How to Understand Your Balance Sheet:
If you’re new to understanding your balance sheet in QuickBooks Online, here’s a step-by-step guide to help you navigate through it:
To Pull your Balance Sheet Report: Go up to “Reports” and scroll down to “Company & Finanical”, and then click on “Balance Sheet Standard.”
Choosing the End Date: The balance sheet is a snapshot of your business’s financial position at a specific date. Select the desired end date to view the information as of that specific date.
Cash Basis vs. Accrual Basis: Understand the difference between cash basis and accrual basis accounting. Cash basis records transactions when money is exchanged, while accrual basis records them when invoices or bills are created. Choose the method that suits your reporting needs.
Accounts on the Balance Sheet: Familiarize yourself with the different types of accounts on the balance sheet:
Current Assets: Includes bank accounts, savings accounts, accounts receivable, and other assets that can be converted into cash within 12 months.
Fixed Assets: Includes vehicles, equipment, land, buildings, and other long-term assets that depreciate over time.
Liabilities: Represents debts owed to vendors, credit cards, accounts payable, and other obligations.
Equity: Includes opening balance, retained earnings, net income, and owner’s equity, depending on your entity structure.
Understanding Totals: The total assets should equal the total liabilities and equity. This is known as the accounting equation. (Assets = Liabilities + Equity)
Customizing Accounts: If you want to modify account titles or create new accounts, access the Chart of Accounts in QuickBooks. Ensure that you assign the correct account type and category to maintain accurate reporting.
Fixing Mistakes: If you identify errors or discrepancies in your balance sheet, check out my additional training and resources mentioned below:
Ready to learn how to set up and customize QuickBooks, check out my A to Z training program: ConfidencewithQuickBooks.com
If you already know the how-to’s and are ready to advance your skills and learn how to clean up mistakes, check out my QuickBooks Simplified Community here: QuickBooksSimplified.com
Remember, understanding your balance sheet is crucial for gaining insights into your business’s financial health and making informed decisions.
Please share in the comments below any ah-ha’s or questions you have 💡
#CandusKampfer
How do you add assets you were gifted? They would depreciate. Example: large irrigation equipment, pumps, panels, land. Large equipment. Vehicles for business use, etc..
I could use help cleaning up my balance sheet. It’s never been correct. I’m still not clear on retained earnings and how the connects to equity. I’m self taught–what can say. Love your pop out sessions and tutorial videos. They are soooooo much help!! Thank you!
Any chance you have a specific workshop coming up just on Balance Sheets?
Tereee,
I’m glad you are enjoying the videos 😊
Did you see this one on retained earnings: https://canduskampfer.com/?s=retained
I will be hosting a workshop on learning how to customize QB soon. You can sign up here to be notified when you can register to attend: CandusKampfer.com/training
Have a great day!
Candus
I would like to know how to track Inventory
Hi Kathryn
Candus uses questions sent in from our community to create new tips and tricks videos each month. I’ll add your question to our list of topics for future videos.
Have an amazing day,
Ednalyn ~ Team Candus
Please how can owner’s drawing of inventory be treated in QuickBooks.
For example, i own a business and i decide to withdraw goods for personal use. How is this transaction recorded.
You will need to create a inventory adjustment.
Go under “Vendors” -> “Inventory Activities” -> “Adjust Quantity/Value on Hand” then pick the date, “Account Adjustment” would be the Equity account.
You will need to pick the “item” you wish to adjust.
Hope this helps 🙂
Take care,
Candus