With QuickBooks you can easily create the financial statements of the business record of yours, and it does require any kind of manual calculations. Content and column of the report could be adjusted, so that the specific information is shown, which is required by you. All your reports can be easily customized by this way.
But before moving to the process of creating financial statements in quickbooks, let’s take a have a look of most Essential components of Financial Statements.
Three Essential Financial Statements for the Financial Reporting
Financial reporting proves to be of great importance for disclosing the financial status of business to the current shareholders, potential investors, government etc. with the help of financial statement you can easily attract the investors, avoid audits and stay solvent.
Financial reports comprise of three financial statement that are main: cash flow statement, income statement, which includes profit and loss statement and balance sheet.
1. Balance Sheet
Balance sheet reflects the net worth of the business of a specific time-period. Company’s liabilities, assets as well as owner’s equity is reflected through it. Ideally the owner’s equity and sum of liabilities when counted should be equal to the sum of company’s assets
2. Income Statement
Income statement reflects the expenses and income of the company of a specific time-period. It shows the financial activities of the past and also calculate the net loss and net income of yours.
Your income can be calculated easily, all you have to do is minus the expenses subtotal with that of the losses from gains and revenues subtotal. Positive number shows the net income whereas the negative number shows the net loss.
3. Cash Flow Statement
Cash flow statement helps in accounting the cash from investing activities, financial activities and operating activities. Cash flow statement helps in knowing where the money was spent and from where it comes.
How to Create Financial Statement in QuickBooks
Statement can also be created for the individual customers, where their transactions could be listed related to your company for all the previous months along with the current outstanding balances.
1. Type One: Creating the Financial Statements of the Company
- Tap on the drop-down menu of Reports and then select the Company and Financial. Tap on the report which you are willing to prepare. You can see more reports that are listed under the Accountant and Taxes
- Customize your report by filling the date fields of From and To, you can also choose the option from the drop-down menu of Dates
- Tap on the button of Modify Reports. Now below the tab of Display, tap on the items that you are willing to include in the statements. You will see a checkmark appearing adjacent to every item. Tap on the items, which you want to exclude, make sure that checkmark is removed in case such items have checkmarks on them. Make the adjustments in the items on another tab and after that tap on the button of OK
- Tap on the button of Print. Not just printing, but you can also export, email or memorize the report to the spreadsheet with the selected options
2. Type Two: Creating the Customer Statements
- Tap on the menu of Customers and after that tap on Create Statements
- Then make sure that statement date is verified in the field of Statement Date, also verify the time-period which you want to be covered in the statement in the field of Statement Period
- Select customer option, which you are willing to print. Options that are available are Multiple Customers, All Customers, Customers of Type, Preferred Send Method and One Customer
- Tap on the button of Print in order to get the print of the customer statement. If you want to see the statement, before taking out the print then tap on the button of Preview. You will also be able to see the button of Print on the window of Statement Preview, after verifying that statements are accurate and verified
Issues Faced by Users
- How balance sheets are created in QuickBooks?
- Can Financial statements be produced through QuickBooks?
- How to get started with the Balance Sheet?
- How income statements are created?
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