Last Updated on June 8, 2020 by Editor Team
Quickbooks Income statement of any business tells that how much net profit and net loss has done in a certain period. That’s why its also known as profit & loss account of the firm. But it is a little bit hard to make manually income statement. Hence people use software to handle all the accounting tasks. Quickbooks accounting software is one of them. And if you are a Quickbooks user then you can generate Quickbooks income statement in just a few clicks.
So let’s see how to create an income statement in Quickbooks
What Is Income Statement in Quickbooks
The income statement is basically a report of any business. That includes all the expenses of the business and the income of the businesses. Via this report, you can get the accurate profit & loss of the account. That’s why its also known as profit & loss account. As we used to maintain profit & loss account manually in the firm. Similarly, Quickbooks has a facility to generate Quickbooks income statements.
Sometimes Quickbooks’ income statement is also known as the P&L account. If you are a Commerce student then you are aware of this term. The income statement of the company is basically created yearly and quarterly and sometimes monthly. So this is the way to get knowledge regarding any business that how much revenue he generated in a certain period.
To better understand this better see the below table
How Income Statement or Profit & Loss Appear
P&L statement or Income statement is just looked like the below statement. It can be a single column or multiple columns. We are taking the example of a single column to understand well. We have divided the income statement in 4 section
Section 1 as shown in the above figure. It helps to identify how much revenue is generated from the sale of the product. So you can analyze how well we can do in our business at this stage. Here the total revenue generated by the firm is $57,523.91.
So the second section is for cost of goods sold by the firm. And the profits earned by this section are $31482.64. That comes from section 1 total income subtracted from the section 2 total cost of goods sold. So we get Gross profit.
Section 3 basically holds all the expenses that a business has occurred during this period.
Like automobile expenses, tools expenses, etc. And we get the total expenses occurred by the firm is $17873.25
And finally, we get the net income of the firm $13609.
How To Create Quickbooks income Statment (P&L) in Quickbooks online
The QuickBooks income statement shows how much revenue generated your business after minus the expenses. So if you will see that your business is getting a loss then you will try to make a profit as soon as possible. So let’s see how to create a Quickbooks income statement.
- First, you have to visit Quickbooks online dashboard
- Now click on the reports, you will find it on home page left side
- Then a new window will open in front of you where you will see various tabs
- The first tab is Recommended, click on it to move further.
- From this Recommended option you will see profit & loss account below click on it
- You can print this P&L report
- And another option is Export this option is used for export the report in excel
- And the Customization button allows you to customize various field in profit & loss account in Quickbooks. Like you can set multiple columns and change the color of the header etc.
- Another button is Collapse this collapse button is used when you have another account on the P&L report. And you want to hide all detail of that account. Then you can hide it very easily.
- And last option for saving your report for future reference, and the name of the option is Save Customization.
Select The Quickbooks income Statement Formate
Quickbooks comes with different versions like Quickbooks online, Quickbooks premier and etc. And all of these have various formates for your income statement. But which is the best fit for your Profit and loss statement. Then this selection depends on the report that why you are trying to generate.
If you want to generate a P&L statement for your customer. Then you can have different formats to manage the P&L account.
Business loan application Purpose
If you want to take a loan for your business. Then you have to ask your loan officer that what format they prefer for giving the loan.
Purpose of Tax Filling
As you know at the time of tax filing, govt needs standard Quickbooks income statement format. So use wisely.
You have seen what is income statement or Quickbooks income statement. Also, you learn how to create a Quickbooks income statement. But our advice you to please check your Quickbooks income statement once in a month. So that you can maximize your profit and grow your business