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Quickbooks Online

How to find and review your profit and loss and balance sheet

QuickBooks online records:
Understanding your QBO records will give you a better understanding of your business and will help ensure that your accounting records are as accurate as possible. Looking at and reviewing your profit and loss account and balance sheet is a good place to begin regardless of whether we prepare the bookkeeping for you or whether you do it yourself.

How to find your profit and loss and balance sheet:

Log onto QBO
Click on "Reports" in the left hand menu bar
You will see three tabs: "Standard" , "Custom Reports" and "Management Reports"
When we prepare your accounts we set up a profit and loss and a balance sheet for relevant periods such as VAT quarters or your financial year and you can access these in the "Custom Reports" tab.
Simply click on the tab and then on the name of the report that you wish to access.
If you perform your own bookkeeping you can review reports under the "Standard" tab and select the period that you wish to review.

How to review your profit and loss and balance sheet:
Once you have clicked on the report you wish to review the report will appear on your screen. You can use the right hand bar to scroll up and down the report.
You can now look at the underlying transactions of any figure in the report by moving your mouse over the figure (which will turn from grey to blue and become underlined) and then by clicking on it. A new report will then open showing how the total figure has been made up. You can see details of each item making up the total and satisfy yourself that the entries are correct. If you want to look at a figure in more detail you can click on it to see the original entry. When you have finished looking at the entry click on the "X" at the top right hand corner and you will be returned to the previous screen. You can then go back to the original report by clicking on the "Back to report summary" link at the top of screen.

In some instances when you look at individual transactions you may be able to look at the underlying documents - you can do this where a copy of the document has been attached to the transaction. The attachments box is on the bottom left hand side of the transaction screen and all you need to do is to click on the document in order to open it up.

Don't forget to log out when you have finished.

What to look out for when reviewing your figures
Look at each expense total or balance sheet item and ask yourself whether the amount is in line with your expectations and understanding of your business. If it is not, try to work out why it is different by looking at the underlying figures. Do all of them make sense, or is something not quite right? Are all items you expected to be there present? Are some items there which should have been analysed to some other heading?
Try to pay particular attention to the larger figures and understand how they are made up.
When looking at the detailed figures behind the total amounts ensure not only that they are correctly analysed but that their descriptions are appropriate.
If you use you bank account for private as well as business expenditure, check to make sure that none of the private costs are included as business expenses and that none of the business expenses are included in the drawings figure, which you will find on the balance sheet report.
When reviewing your profit and loss account pay particular attention to amounts which are not supported by a purchase invoice in order to satisfy yourself that the amounts were paid, that they are correctly analysed and that in the event of an HMRC enquiry you can defend their inclusion in your accounts.

If you get stuck!
If you get stuck or need further help or assistance please get in touch. We can help you find the reports you are looking for and we can help you amend any transactions that are not right.



"Understanding your QBO records will give you a better understanding of your business and will help ensure that your accounting records are as accurate as possible"