The Benefits of a Budget
Are you currently creating or revising your business’ budget for the third and fourth quarters of 2021? If so, you may be struggling somewhat with making it realistic, efficient, and effective. Creating a workable balance of funds as you attempt to juggle your company’s income and expenditures can be difficult. Yet QuickBooks Online is designed to help you do just that in addition to multiple other options.
Even if you have a new startup business, you most likely know that a well-designed company accounting plan is an essential tool. If your company has already survived its first year, you have the previous twelve months’ track record as a guide. However, identifying essential and non-essential charges and expenditures can be a problem. Financial experts frequently recommend setting up QuickBooks Online.
Don’t Forget Your Emergency Fund
By saving some backup or emergency funds, you can avoid stressful hours of tallying up figures. Otherwise, you may create a nearly endless, cumbersome, and confusing spreadsheet while suffering from financial burnout. QuickBooks Online offers the ideal solution with an organized, carefully planned accounting-building option for your business. It is a sophisticated, contemporary yet streamlined and user-friendly accounting software for small businesses.
How QuickBooks Online Can Help You Design Your Budget
QuickBooks Online provides an advanced yet easy-to-use platform of built-in options and tools for designing your accounting. In fact, the accounting template offers many typical small business items for your use. You will benefit from a suite of highly effective features and options by setting up QuickBooks Online.
Creating a Budget with QuickBooks Online
By clicking the gear icon in the upper right corner, you can access Budgeting under Tools. After clicking Add Budget at the screen top, enter a Name for your accounting plan and choose the correct Fiscal Year from the drop-down menu. Next, select a monthly, quarterly, or yearly interval and specify whether you want to enter corresponding Pre-fill input from an existing year’s data.
By selecting the Subdivide option located at the top of the Accounting Grid screen, you can designate subdivision categories. You can separate your data by Customer, Class or Location for viewing specific financial figures. This feature enables you to view several clients’ data in the accounting grid individually.
After you have selected the features and categories that you need, click Create Budget in the lower right screen area. When the screen refreshes, it will display your new accounting grid, which you can revise whenever you like.
Entering Your Data under Accounting Items
To finish creating your financial plan, enter the corresponding figures in the boxes given. The accounting template columns are divided by months or quarters, according to what you originally selected. Each row is labeled with a business accounting item, such as Advertising, Gross Receipts or Legal & Professional Fees.
Just input your numbers in the appropriate boxes of this efficient accounting software for small businesses. Afterward, if you click on a box, an arrow pointing right will appear. By clicking this arrow, you can view the number that you entered in every box of that row. After you finish entering your data, click Save near the screen’s lower right corner. You can now view and edit your accounting template as needed.
Preparing for the Next Year
You may be devising an accounting plan for the second half of a year as the end of the first half approaches. QuickBooks Online can display your figures from January through May. For some categories, the numbers may vary only slightly for each month of that five-month period. If so, you can input a simple average of each category’s monthly figures for the month of June.
If you hover the cursor on the arrow directly to the side of any one of these fields, a bubble will display. Instructions in the bubble will tell you to click the field figure to copy it across the entire row. This number will then appear in this field for July through December.
After entering all your data in the appropriate fields, click Save and close the window. Your company accounting template will now be listed and available for use. If you have blank rows in your accounting plan, you can click the gear icon at the top right of your financial plan. Then select Hide Blank Rows. You are now well-versed in the process of setting up QuickBooks Online.
The QuickBooks Online platform provides you with two separate yet related reports:
- Accounting Overview. This is a report that displays all your financial data.
- Financial Plan vs. Actuals. This report reveals how well you are complying with your financial plan.
Practicing Due Diligence
This advanced online QuickBooks platform streamlines the steps for customizing its accounting software for small businesses. However, it is your job to supply the correct numbers. Applying some basic principles of common sense is also advisable, including the following:
- Look for any seasonal upturns and downswings.
- Keep your focus and goals realistic and practical.
- Consider creating one financial plan for “needs” and a second for “wants.”
- Pay careful attention to your expenditures over monthly or quarterly time periods. This enables you to project more accurate estimates for the future.
- Produce regular reports comparing your financial plan vs. actuals.
Reviewing Your Business Accounting
Remember to review your financial data every month. In the beginning, it can help to create a monetary plan for a couple of months or for the current quarter. This enables you to watch for recurring patterns in your income and spending, which can aid your future financials.
What You Gain from Your Budget
The flexible QuickBooks Online platform and is adaptable features help you adjust financial categories and monetary allotments as needed throughout the year. You will soon have a clear, concise, and accurate understanding of and plan for the financial growth and success of your business.