How to edit A Budget In Quickbooks 2016
Budgets and Forecasts in QuickBooks Desktop
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all right so budgets so but it's have a
couple of options you're gonna have a
budget versus actual comparison report
which is the most commonly used report
you can actually break down a budget by
class by customer or an overall budget
for the company so it does give you the
option to do it based on a class or a
customer now budgets give you an
additional function called the
performance report that allows you to
also compare your a year-to-date
performance now one little interesting
tidbit is you can actually export your
budgets into IAF modify them in Excel
and import them back in and if I have
time we'll cover that okay so we are in
QuickBooks desktop now and let's go just
through the basic motions on how we set
up a budget so the first thing we do is
we'll go to the company menu planning
and budgeting and click on setup budgets
right we'll click on setup budgets and
then by default if I already have
created a budget QuickBooks will pop up
with the last budget that was created I
can actually click on the right here
where it says create new budget and I
can click on that and then I can choose
the year in which I want to create that
budget for so for example in this sample
file this is all I believe it's a 2018
year so we're gonna use 2018 for the
budget that way we can compare some of
the reports there and then it asks is
asking you whether you want to do a
budget of the profit and loss or a
budget of the balance sheet they're two
separate individual budgets you would
have to create them individually so let
me go ahead and click Next then it's
asking you do you wanna do an overall
budget right no additional criteria this
is this would be for the entire company
or do you want to break it down by class
or by job so that's possible too I'm
gonna do it with no additional criteria
then I'll hit next okay now you can now
choose or one of the options you have
you can choose to just type all the data
by
and so you're gonna type every single
income and expense projection by hand or
you can grab the actual years data as a
starting point so QuickBooks can say
okay let me grab whatever you did the
previous year and let me put it as a
budget for the next year so let me go
ahead and hit finish okay and then
QuickBooks will automatically create a
budget based on last year's data now let
me show you some of the components here
because some of these are pretty
interesting for example if you look at
January of 2018 there's a number there
okay and all these numbers again we told
it to create the information based on
historical information but if I can
change this so if I want to make this
25,000 I can just literally just type it
in there but there's a interesting
button in the bottom called copy across
so if I click on copy across it will
take the $25,000 and it will move them
to every single month so then you can
basically create a row number like it's
copied across so you only really have to
do that once now by nature QuickBooks
budgets are based on months their
monthly budget so it's a really
important piece you just kind of get it
get that settled now once I copy the
25,000 across I can click on the bottom
left here where it says adjust row
amounts so if I click on adjust row
amounts I can actually say all right so
starting the first month I want you to
increase that amount by let's say 2%
okay so I'm basically telling it to go
up 2% okay
and I hit OK and basically it's gonna
increase all the dollar amounts by 2% so
that's kind of a one of the interesting
things about that now if I select this
second option called currently selected
month which happens to also be January
we can also enable compounding so enable
compounding would be that it not only
increases it by 2 percent across the
board but it also increases it by 2
percent upon itself so it would be 2
percent times 2 percent times 2%
so you'll get this sort of exponential
increase so I can hit okay and then you
can see that exponential increase of
this put here two percent and make sure
you put a percent sign not a dollar sign
because it would just go up by two
dollars okay so then you see a two
percent exponential increase of your
sales so let's assume that's that's
going to be my sales projection now
going down a little bit I can go
experience account by expense account
and also choose whatever I want in there
if I want to manually change it or I can
leave it there just for the sake of of
moving forward now if I clear my entire
budget will be deleted and basically I
would have to start from scratch so let
me go ahead and hit OK and now my budget
is created so now what do we do with
that budget well we can do a couple of
things one we can go to reports we can
go into budgets and forecasts and then
basically we're going to have three
choices here for budgets we're gonna
have budget overview budget versus
actual and budget performance so let's
go through each one so a budget overview
would just be a report that shows me my
budget there's no comparison with sales
there's no there's no performance data
this is literally a profit and loss
based on a budget not based on actual
data and then the normal options here
apply we can do this by quarter if we
wanted to or by by day in this case
QuickBooks will literally split the
month by 30 or by week and it will
literally split the month by four or
five weeks however weeks are in the
month so it's really really interesting
how you create the budget in a monthly
basis but QuickBooks can splice it and
dice it in several formats when it comes
to to timing right so that so that is
the budget overview let me go ahead and
close that and let's go to the report
that people actually really use which is
the budget versus actions and we'll go
through the through some of the details
there so order versus actual again it
will ask me which
budget you want to do and that's based
on the budgets you have created and then
I'll click on next and then if I have
multiple budgets like by class or by job
it will ask me there if I want to pull
any of those specifically but in this
case I'm just gonna do the standard by
month and then click finish and budget
versus actual in its nature is gonna
show four columns the actual numbers
which is the one that contains the month
so this one that says January eighteenth
that's the actual number and then budget
would be the budgeted amount a dollar
over budget that would be you know how
much more or less I am in terms of
getting close to budget and then the
percentage right whether I am eighty
four percent close to getting budget or
maybe over budget in some cases whenever
you see a hundred percent over budget in
some cases now a lot of people ask me
you know how do you get that red in
there but because for budgets I think is
important to do colors because you
really want those numbers to stand out
so the way you get red in there just to
show you we got a customized report with
our funds and numbers and we actually
hit this little check box here that says
in bright red so we can actually just
leave it in black if I want to but then
if you're under budget it doesn't show
so I find that extremely valuable to do
at least a bright red there now the
other thing is when it comes to budgets
I normally just get rid of the sense I
find that a lot of times are their cents
just tend to be a bit confusing so I'm
gonna hit OK there and then and then for
most people it actually it's just a lot
more palpable to work that that way that
doesn't mean that you have to turn off
the sense or anything like that but I
mean that's just just an option okay now
as I go through my budget here notice
that I got four columns I got actual I
got the budget I got a dollar amount
percentage amount I'm gonna click on
customize report I can actually turn
these off so if I don't want to see the
dollar percentage or I mean the dollar
difference or there or the budget
percent I can take that away and
literally just compare them to without
the difference now most people need that
variance absolutely
barians you know so I'm not advocating
to turn that off I'm just you know
showing you now the other kind of thing
that people most people don't get to
hear on this advance window it shows you
a couple of interesting things
this one says show only rows and columns
with budgets okay so I'm going to go
ahead and hit OK and then hit OK and
then imma show you what I mean by that
so for example if I happen not to have a
budget in the advertising line okay the
advertising line would pretty much go
away so what I mean by that is if you go
back into your budget here so I'm gonna
edit my budget I'm gonna go down to
advertising so if I have my advertising
line are completely blank so there's no
no budget in it and I may have to
refresh that report okay that that
budget would line I will have to refresh
the report but that's how you can hide
some of the lines that don't have a
budget so that's once you've run the
report around to rerun it but once you
run the report that that will go away if
there are no budgets on that particular
line or that particular month now the
other important thing is display rows
now here it says active if I click on
all it will also display the accounts
that don't have any information
whatsoever so if I happen to have not
have a budget or not even have any
financial data that also includes that
in there and I tell you a lot of times
what ends up happening is you print a
budget report and there's an account in
the chart of accounts that most the
people are used to seeing there but it
happens to have no numbers it's
important to show that to because it's
important for people to know that that
does not have any budgets or it hasn't
been used and of course if you don't
want that to show up in there don't hit
that checkbox or delete the account or
something like that all right so that's
that's budget versus actual that's
really all you need to know about that
let me pull one more report on the
budget side which is going to be profit
and loss budget performance
now the profit and loss budget
performance is pretty much the same
thing however it's going to add one more
additional column and this is much more
useful whenever you're comparing a month
or a quarter only so for example right
now I'm going to compare just the
current month now the performance
version of the profit and loss gives you
two additional columns one is my January
to December year-to-date performance
versus my year today budget versus my
annual budget so here today budget and
annual budget are different actually let
me show you what I mean by that
so if I actually put 0 7 0 1 2018 vs. 7
31 2018 so I'm just going to look at
your lie so if you look at that
year-to-date budget that would be the
accumulation of the budgeted amount from
January through July however annual
budget will be the entire budget from
January all the way to December so
that's a really important piece to know
because that allows you to compare some
of these now under customize report you
can also enable dollar difference and
budget difference if I want it now
another common question I have is Hector
I just want to see my budget for my
expenses I don't want to see the sales
account so that's pretty easy so we're
going to go to customize report and then
we're gonna go into filters and then
here where it says account all income
and expense accounts we're going to
change that to all ordinary expense
accounts ok or we can do expense and
other expense accounts we can do both
and then I hit OK and then I am NOT
going to be looking at any sales budget
so I'll be looking at just expense
budgets and because these reports get so
big our budget reports are usually big
and we had a big group of a crowd here
that's logged in the answer the question
that they'd be using but is quite a bit
then I know this so what ends up
happening is sometimes this is just a
tip sometimes when you look at
sometimes this is not just good to look
at your income and expense budgets
combined sometimes just looking at the
expenses by itself could be useful okay
all right so let me go ahead and close
that let's go to now forecast
so forecasts are almost almost identical
to budgets however you can't break it
down by a class or customer job the way
you can do it with with a budget and you
do not get the year-to-date performance
and also you cannot export an import
via iif so a forecast is it's a really
light version of budget so you can use
it as quote-unquote an additional budget
but it is not as powerful so I would
suggest that you focus on working with
the budget and then only work with the
forecast when you need to so let's go
into the forecast here so let's go into
forecast real quick and forecast works
very similarly like I get to pick my
year and and I did I am working with
QuickBooks Enterprise by the way in this
one so enterprise will allow you to do
class and customer job but quickbooks
pro wouldn't for forecasts so i'm gonna
go to next and then i can do the same
thing i can create a forecast based on
previous year's data and everything on
this screen is pretty much identical I
can I can change these numbers you know
maybe I want to be a little bit more
far-fetched here on my on my sales and
and again it's I would say for the most
part just don't think of this that's an
entirely different function this is just
like just just like budgets so when I
run the report I'm gonna go to budgets
and forecasts and then notice I only get
the overview and the actual I don't get
the performance or the graph so let me
go to what you versus actual and hit
finish and finish and all the
functionality is the same all the
functionality is consistent I can choose
what to show to compare against
I can do these bye-bye quarter if I want
to so so again just think of it as a
secondary think of it as a secondary
budget okay just what you don't get is
that performance report which is the one
that gives you that year-to-date and
that and that annual budget now if I go
to the graph the the budget versus
actual graph which I normally don't work
with it too much but you know some
people find it really useful you could
do it this way so you could run the
graph that will compare budget versus
actual and show you when you're where
you're under and where you're under
whether you're favorable or unfavorable
in terms of your profit and loss so that
this could be useful but I personally
don't use it very often but it is there
okay so that's that's budgets and
forecasts
