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Community Contributor *

Excluding a Expense from reports

My wife currently runs a sole proprietorship and I manage the books for her. 

 

Currently the way I do the "payroll" is we simply transfer money from her business account to our personal account. In Quickbooks, I have a Account called "Payroll Expenses". To us, this isn't really an expense or loss and do not want it to show up that way in the profit and loss reports as to us it is actually income. It makes it harder to see what the business is actually making.

 

Am I going about this all wrong? Is there a better way to do it than what I am doing? How can I show profit and loss reports without making our income look like the company made hardly any money? Tax time this makes sense, but when it comes to looking at profit, it makes 0 sense.

Solved
Best answer 10-01-2019

Accepted Solutions
Moderator

Re: Excluding a Expense from reports

Thanks for getting back to us, KraftsbyKatelyn.

 

Yes, there is! Most reports in QuickBooks Online (QBO) can filter the distribution account. This will let you choose the accounts that you only want to be displayed.

 

Here's how:

 

  1. Go to the Reports menu at the left pane to get to the Standard reports tab.
  2. Under the Business overview section, select the Profit and Loss.
  3. Once pulled up, click the Customize option at the upper right. 456.PNG
  4. In the Filter section, tick the Distribution Account drop-down and place a checkmark in the accounts that you want to see in the report. 457.PNG
  5. Hit Run report.

 

For additional resources, please check out these articles:

 

 

Let me know if you have any other issues or concerns in the comment section. I'll be here to help. Have a wonderful day!

View solution in original post

Anonymous
Not applicable

Re: Excluding a Expense from reports

I’m happy to know that the answers above was able to help you, KraftsbyKatelyn.


Regarding your last question, the option to customize profit and loss is available in the Essential and Plus versions. If this is something vital to your business, you check this article for steps on how to upgrade your subscription. 


Also, you can learn more about the features available in your plan here: Compare Online Versions of QuickBooks. 


Feel free to post again if you need anything else. 
 

View solution in original post

8 Comments
Moderator

Re: Excluding a Expense from reports

Thanks for the details, KraftsbyKatelyn.

 

QuickBooks Online has a default expense account when you run payroll. If you're the employer and you pay your employee, that's the time you use payroll expense. In your case, since your salary is your source of income, then you'll be using an income account. You can make a deposit to do this one.

 

With that said, I'd suggest reaching out to your accountant to help you decide what is the best account to use for this.

 

I'm just around the corner if you have other concerns.

Community Contributor *

Re: Excluding a Expense from reports

I don't use the actual Payroll feature in Quickbooks because we don't have that subscription and it doesn't make sense being a single person company. When we make a transaction to our personal account for our "payroll", I simply notate that into a expense account called "Payroll".

 

My question is more is there a way to exclude this expense account from the Profit and Loss reports and others?

Moderator

Re: Excluding a Expense from reports

Thanks for getting back to us, KraftsbyKatelyn.

 

Yes, there is! Most reports in QuickBooks Online (QBO) can filter the distribution account. This will let you choose the accounts that you only want to be displayed.

 

Here's how:

 

  1. Go to the Reports menu at the left pane to get to the Standard reports tab.
  2. Under the Business overview section, select the Profit and Loss.
  3. Once pulled up, click the Customize option at the upper right. 456.PNG
  4. In the Filter section, tick the Distribution Account drop-down and place a checkmark in the accounts that you want to see in the report. 457.PNG
  5. Hit Run report.

 

For additional resources, please check out these articles:

 

 

Let me know if you have any other issues or concerns in the comment section. I'll be here to help. Have a wonderful day!

View solution in original post

Community Contributor *

Re: Excluding a Expense from reports

I appreciate your very detailed instructions and you taking the time to help! Unfortunately I am missing that option. Could it be my billing plan? If so, what billing plan do I need to do that?

 

 

QuickBooks Team

Re: Excluding a Expense from reports

Hi KraftsbyKatelyn,

 

Customizing the profit and loss report isn't available in QuickBooks Simple Start. You'll want to upgrade to a higher version so you'll be able to filter your report. Let me guide you where you can see your plan details.

  1. Click Gear at the top.
  2. Click Account and Settings.
  3. Click the Billing & Subscription tab. You can see your subscription plan under Plan details.
  4. To upgrade, click on the Upgrade link. Then, follow the steps that will guide through the rest.

Please check this handy article about the reports included in your subscription.

 

You can also visit our website for more information regarding our products: https://quickbooks.intuit.com/pricing/.

 

I've added our page in case you need some help articles of your future tasks: Reports and accounting.

 

Always swing by if you have other concerns. We'll be around to help.

 

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Community Contributor *

Re: Excluding a Expense from reports

Again thank you for the detailed how-to! One last question! What plan do I need to be on in order to do this? I believe I am currently on the QuickBooks Simple Start, but what plan do I need to upgrade to get this functionality?

 

Thank you very much!

Anonymous
Not applicable

Re: Excluding a Expense from reports

I’m happy to know that the answers above was able to help you, KraftsbyKatelyn.


Regarding your last question, the option to customize profit and loss is available in the Essential and Plus versions. If this is something vital to your business, you check this article for steps on how to upgrade your subscription. 


Also, you can learn more about the features available in your plan here: Compare Online Versions of QuickBooks. 


Feel free to post again if you need anything else. 
 

View solution in original post

ProAdvisor

Re: Excluding a Expense from reports

@KraftsbyKatelyn 

 

"My wife currently runs a sole proprietorship and I manage the books for her. 

 

Currently the way I do the "payroll" is we simply transfer money from her business account to our personal account."

 

You need to check with your Tax Accountant for further guidance.

 

If you've Sole-Proprietor (Form 1040) business type, you would have Owner's Draws which is Equity account and should have no actual payroll or payroll expenses. 

To create Owner's Draws account in your Chart of Accounts:

 

Equity_Owner's Draws.PNG

Again, check with your Accountant for the best guidance.

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