Did you know that QuickBooks® Online (QBO) has a great budget tool?
Businesses use budgets for many reasons. Budgets can be used to plan for cash flow, meet staffing needs, identify supply chain needs, adjust expenses for seasonality, deal with upturns and downturns in revenue and expense, and to encourage accountability.
Here are the steps you need to take to create a budget in QuickBooks Online (QBO). Sign into QuickBooks Online as a user with permission to access, create, or delete budgets.
Once you are logged in, make sure the beginning of your financial year is set in QuickBooks. It helps if you start at the beginning of the year, but you can create a budget any time.
You can base your budget on data either from the current financial year or from the previous year’s amounts. A preliminary budget report shows actual transactions created during the current year to date.
Here’s how to customize the budget to use the previous financial year’s numbers:
If you don’t want to build a completely unique budget, you can copy an existing one. Go to the “Edit, copy, or delete budgets” section. There are special budget reports that help you keep track of your budget goals.
Budgets by account are summarized in the Budget Overview report. The Budgets vs. Actuals report summarizes accounts alongside your actual account totals. It also shows how much you’re under or over budget.
If you need to edit a budget, make your changes right in QuickBooks:
Instead of starting from scratch, you can create a copy of an existing budget. This helps you jumpstart this year’s budget by using last year’s data as a baseline.
This process saves the copy budget as a new, separate budget.
At Mahoney, we are happy to answer any questions you may have about QuickBooks Online (QBO) or budgeting. Reach out to Associate Director and QuickBooks ProAdvisor Peggy Prall, CPA, and she can assist you in this matter. Don’t miss our other QuickBooks blogs for more tips.
See also: Managing Pre-Payments in QuickBooks
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