31 Aug Using QuickBooks Budgets as a Tool to Control Your Finances
Most small business owners are focused on operating their business and ensure that their business runs smoothly. This is good, and in the long run, as the business grows, business owners might also be concerned on how to manage finances, particularly the companies’ expenses.
You can actually use QuickBooks to keep track of your budget and actual expenditures. Set up your budgets in the budget screen (Company>Planning and Budgeting>Set Up Budgets)
Creating a new budget in QuickBooks allows you to set up budgets from scratch, or set up budget based from your historical financial data. You may also set up budgets by Class (such as profit centers) or by Job (such as projects).
Once done, as you record your transactions, QuickBooks tracks which accounts these transactions are posted and will reflect in the Budget vs Actual Report (Reports > Budgets & Forecasts>Budget vs Actual) based on your desired budget criteria.
From this report, you can actually see your actual amount, budget amount, budget variance and percentage from the budget. This can help business owners and accountants monitor if the business expenditures are still within the defined budget