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Financial Awareness in QuickBooks Online

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Did you know that August 14th is National Financial Awareness Day? Well, now you do! We’re taking this time to remind you to look ahead to your financial future and see how you can continually increase stability within your business.


QuickBooks Online has a wealth of reports and customizing options to help you tap into the heartbeat of your business to see if you’re healthy and strong. Let’s look at our top reports to help you accomplish this:


Profit and Loss Report


What don’t we love about knowing how profitable your company has been over the past month? If you don’t know where to start, this report should be your first stop in order to find out how your business is doing. At the most basic level, P&L reports deduct your expenses from your income to show how your company is performing. Run this report every month or two to stay on top of your true revenue. Thinking about applying for a loan, or looking for some new investors to help you expand your business? This report is going to help you show how profitable your business is. 


Balance Sheet


This report means business. In brief, this shows what you own (assets) and what you owe (liabilities). Your assets can be physical property like equipment and computers or accounts like your bank accounts, investment accounts, etc. Liabilities include any debt you have in loans, rent, taxes, and outstanding payments. It shows you your net worth at a specific point in time, not over a date range. As the title suggests, you want your total assets to be equal to the value of your liabilities and equity combined. 



Statement of Cash Flows

Where’s that cash flowing? Get a great overview of money coming into your business, where that cash came from, and how it was spent. It’s essential to determine whether a business has enough money to pay off debts or other needs that come up. There are three sections: Cash flow from operations (transactions from day-to-day business activities), cash flow from investments (how much money was generated from assets purchased), and lastly cash flow from financing activities (cash from debt and equity). 

Budget vs Actuals Report


You have money coming in, but what is your actual income? Once you’ve created your budget in QuickBooks, run this report to see your income and expenses compared to the budgeted amount you set up. The point of this process is to set a goal (your budget) and see how close you can stick to it. Give yourself the insight to see if you’re on track or falling behind so you can adjust how you’re managing your money.


Accounts Receivable Aging summary report

A long name, but that’s because it’s packed with a ton of information! Look and see all unpaid balances, or run this as a detailed report to show you the same breakout but by customer. You can run these reports by two different aging methods: Current, which shows you those balances based on today’s date, or Report Date, which shows you the status on a specific date of your choosing. 


As you can see, there isn’t just one report that keeps you in the loop of your financial wellness. It’s important to look at your business through a multitude of lenses to gain an overall understanding of how your business is doing. If you’re feeling overwhelmed, remember this is not a sprint! Deep breaths and take it one report at a time. You got this. :)


Happy Financial Awareness Day! May your business be healthy and wealthy!

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