welcome to the fit small business
quickbooks online training course in
this lesson we're going to cover how to
run a balance sheet report in quickbooks
online to follow along with me
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helpful resources let's get started
the balance sheet includes the assets
liabilities and owner's equity for your
business assets are those items owned by
the company for example computers
business equipment and inventory are
assets liabilities are what you owe to
others for example alone on a vehicle
that you use for business or a business
line of credit that you have with your
bank are liabilities owner's equity
reflects the net amount of money that
the owner or other investors have
invested in the business as well as
money retained from profits also known
as retained earnings the numbers on the
balance sheet provide a snapshot of the
financial position of the business at
the exact point in time that the balance
sheet was prepared the balance sheet is
as of a specific date for example
December 31st 2016 whereas the profit
and loss statement which we covered in
the previous lesson is for a period of
time for example January 1st through
December 31st 2016 this is one of the
primary differences between these two
financial statements to help demonstrate
the components of the balance sheet we
will use a fictitious company paul's
plumbing as indicated here I have
identified four sections of the balance
sheet for Paul's plumbing section 1
shows total assets in this section
Paul has several assets listed bank
accounts inventory and undeposited funds
bank accounts the amounts shown here are
what the QuickBooks register reflects as
the bank account balance as of September
29th 2016 and how to reconcile your bank
accounts lesson we walk through step by
step how to match up your QuickBooks
register with your base
statement next we've got inventory this
is the value of Paul's inventory on hand
as of September 29 2016 to ensure
accuracy an inventory count should be
done on an annual basis and adjustments
should be made in QuickBooks to reflect
any differences between the inventory
that you have on the Shelf compared to
what is in QuickBooks last but not least
is undeposited funds the amount that is
sitting in this account is typically
credit card sales that have not been
deposited to your bank account and the
how to manage credit card sales lesson
we walk through step by step how to use
the undeposited funds account section to
total liabilities in this section Paul
has listed his outstanding credit card
balances the amount shown here are what
the QuickBooks registered reflects as a
credit card balance as of September 29th
2016 and now how to reconcile your
credit card account to lesson we walk
you through step by step how to match up
your QuickBooks register with your
credit card statement section 3 is total
equity in this section
Paul has open e balance equity and net
income listed opening balance equity
this is a default account created by
QuickBooks this account should be used
to code beginning balances - when
setting up with books for the first time
for example when you set up a bank
account in QuickBooks you have to enter
the opening balance of that account into
QuickBooks so that you will be able to
reconcile the account later on the
amount that you enter as an opening
balance is coded to the opening balance
equity account behind the scenes this
account should eventually be closed out
to retained earnings once you have
finished setting up QuickBooks net
income this figure comes directly from
the bottom line of your profit and loss
statement at the end of the year
QuickBooks will automatically transfer
this amount to the retained earnings
account retained earnings is an
accumulation of the net profit or loss
in your business since you opened your
doors section for total liabilities and
equity this is the total of section
two and three from an accounting
perspective total liabilities and equity
will always equal assets this holds true
for pause balance sheet report total
assets here as we can see in section one
is seventeen thousand nine hundred
seventy six dollars and seventy two
cents and the total amount of
liabilities plus equity equals seventeen
thousand nine hundred seventy six
dollars and seventy two cents here and
item number four let's go ahead and go
into QuickBooks and walk through the
steps of how to run a balance sheet
report in quickbooks online from the
left-hand menu bar go ahead and click on
reports make sure that you are on the
recommended reports tab here and then
you will see balance sheet to the right
of profit and loss so go ahead and click
on that balance sheet link here we've
got several options the first option
that we have is to print the report so
you can print the report you can also
email the report so if there's someone
that you would like to review the report
like your accountant or tax professional
you can email it to them directly from
QuickBooks you're also able to export
the report if you click the drop down
arrow to the right of export you can
export the report to excel you can also
customize the report if we click on the
customize option here there are several
categories that are listed here that
will allow us to categorize the general
characteristics of the report such as
the accounting method the rows and
columns we can customize the list
information the format of the numbers
and also the header and footer
information the collapse button here is
used if you use sub-accounts this button
allows you to hide that level of detail
if you wanted to show a summarized
version of the report you're also able
to save any customizations that you make
the report so that you can use them for
future reports down below that is
you want to select your transaction date
you can select from the preset
transactions that QuickBooks has here or
you can actually select the specific
period of time that you'd like to run
the report for and and once you make
your selections for the date you want to
go ahead and click this one report
button so that it takes in all the
changes and here is our balance sheet
report for that time period for Paul's
plumbing you should now have a pretty
good understanding of what the balance
sheet report is why it's important and
how to run a balance sheet report in
QuickBooks Online here are a few
processes that I recommend you put into
place immediately
first reconcile our bank and credit card
accounts on a monthly basis second you
want to implement regular inventory
counts to ensure quickbooks matches
actual inventory that you have on the
shelf third review your balance sheet
report on a monthly basis if not more
often fourth be sure any discrepancies
between your balance sheet and bank
accounts or credit card accounts are
handled in a timely manner
fifth be sure that all outstanding money
that you owe to others has been
accounted for for example any line of
credit any bank loans any personal loans
etc and finally share your balance sheet
with your accountant or tax professional
for further guidance that wraps up the
lesson on how to run a balance sheet
report in QuickBooks Online to access
our full QuickBooks Online course or any
of the other lessons in this series
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