What Is quickbooks Income Statement?
The quickbooks income statement is like an organization’s profit and loss account. The only difference is that in bookkeeping, we do physically credit all income and gain while debit all the expense and loss. But in quickbooks, we don’t need to do it physically, quickbooks consequently track every one of these things and show in the salary explanation corner. So we should turn on the light at this point.
Advantage of quickbooks Income statement
quickbooks accounting software provides us with a simple graphical user interface. So we can easily use its functions and work efficiently. Let’s see its advantages for our business.
- Graphical view: quickbooks use a graphical way to represent your firm’s income statement. So that you can see where your business stands and help you to make reliable decisions in-order to grow your business.
- Maximize Profit: by using quickbooks income statement report, you can quickly examine how you can maximize your company’s Profit, like you can see where you are spending lots of money and revenue generate nothing, while in other hands you are spending less but gaining large. So it helps you in maximizing the firm’s Profit.
- Reduce Time And Effort: quickbooks online or desktop app always track your business data. So that you comfortably watch your income statement in just a few clicks.
- Benefit at the time of tax payment: When you go to for tax payment at federal agencies, then they usually demand companies’ profit and loss account. Because it provides in-depth knowledge of your company’s sales and revenues. Also, it is beneficial for getting investors for your firm.
How do I Create An Income Statement In quickbooks
A company can create income statements easily with quickbooks. The income statement is also known as the P&L(Profit and loss) account; the company can use this P&L report for taking loans and investments. Companies generate income statements on a monthly, yearly, or Quarterly basis to know how well they are doing in their business. So let’s see how you create an income statement in quickbooks.
- First, go to the Report menu from the menu bar
- Click on the company and financial> Profit & Loss standard
- You can see the details of your company P&L account of the specific accounting period which you specified.
- You can track inventory, that appears total income above and the total cost of goods sold below.
- quickbooks shows automatically gross Profit by subtracting the cost of products sold from net income.
- Also, you can see net Profit or losses and many more.
quickbooks Financial Statement Template
quickbooks allows us to manage a firm’s profit & loss account in two different ways. First single-step method and multiple-step method. Accountants and business owners can create income statements according to their choice and need. The single-step process is also known as a single column P&L account or multiple statement method known as multiple columns P&L accounts.
P&L account pattern also depends on your accountant and federal agency’s demand. If they want multiple statement methods, then use it, and if they ask for a single line method, then use a single line method. So let’s see how quickbooks’ income statement looks in a single and multiple statement method.
- Single-step template: in this template, you can get net income or loss by subtracting all the revenue, gains, expenses, and loss. Formula for calculating net income is (NI or NL= (revenue gains)- (expenses+loss)). You have to enter all the details, and quickbooks automatically generate single column income statements.
- Multiple-step income statement: multiple step methods separate each section, you can quickly see your gross Profit by subtracting net sales from the cost of product sales. quickbooks also gives a separate view of your operating revenue & expenses from other revenues & expenses.
How to Customize quickbooks Income Statement
If you want to use a special header and footer in your quickbooks, you can customize your income statement by clicking on Customize report. quickbooks help you to customize your P&L account.
- First, run quickbooks desktop and click on customize the report, here you can change the date, accrual cash, display columns, and dollar sign.
- If you are using quickbooks online, you can add a dropdown option for selecting the accounting period.
- Click on the Add note option to add notes for your business transaction. If you have purchased a bike for office use, then show it in P&L and add a note for office use.
quickbooks income statement helpful for all the small & mid-size businesses because it shows all your previous business activities like sales and expenses during a specific fiscal year. The income statement is also useful when you are going to take a loan.