You don't know how to create a Budget in QuickBooks? You already have a budget plan for your business but it’s been challenging to stick with it for the last several months? If you don’t have products or services that are in great demand when the COVID-19 pandemic has happened, you will somehow need to adjust your budget significantly.
To prepare for better days ahead, it’s a good time to start doing some planning for the second half of your 2021 budget. Although there is still uncertainty about what will come next, creating a budget will definitely give you a good starting point.
In this article, we are going to cover a step-by-step guide on how to create a budget in QuickBooks effectively.
But first, we will discuss what is a business budget and its benefits to see why this is an excellent first step for any new business owner.
A solid business budget is like a road map for earning and spending. It provides a vision of the financial future that your organization will go through so that you can come up with better solutions for it. To make wiser decisions whether you can or should purchase new facilities and equipment this year, it’s advisable if you refer to your business budget.
Besides, if you are looking for ways to cut down on expenses, a business budget could give you a present view of your financial health like what sector you should spend money on and what advantages you may get from cutting back. The main aim of a business budget is to offer businesses better foresight to boost earnings as well as the overall performance.
To be more specific about its benefits, there will be reasons why you should have a business budget.
The first type - “Profit and Loss” budget will provide users a comprehensive view of yearly activities their business has, while the second option - “Balance Sheet” budget deals mostly with your ending balances.
In this sample company, we will go for the “Profit and Loss” type.
Once you have chosen “Profit and Loss”, click the “Next” button at the bottom. However, if you choose “Balance Sheet”, just click “Finish” and move on to Step 5.
This third step is for those who want to create budgets for specific clients for jobs. To do this, choose the “Customers:Job” option. If not, you could click “No additional criteria” to create a yearly budget.
To finish this step of adding additional criteria, click the “Next” button.
For the second option, the previous data can be useful and provide insight when making a new budget.
The sample company is brand new so we are going to choose “Create budget from scratch”.
Remember to make your budget realistic and practical. For example, imagine you want to earn 5000 dollars in sales each month, just don’t put that number in QuickBooks before you come up with manageable steps and feasible solutions to make it come true. You must break that goal into actionable steps and think of effective marketing and advertising practices to make sure it’s possible to happen.
You can run reports to view the budget status any time you want. The reports can be Budget Overview, Profit and Loss Budget Performance, Budget vs Actual, Budget vs Actual Graph.
>> Source here: https://store.magenest.com/blog/how-to-create-a-budget-in-quickbooks/
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