When you think about financial statements, do you ever feel overwhelmed?
Let me show you how to generate your Balance Sheet Report in QuickBooks. 😊
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 to the “Reports” tab and scroll down to “Business Overview.” Click on “Balance Sheet.” If you’re using the Business View, go to “Reports” and scroll down to find your balance sheet.
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 💡