Quickbooks
April 19, 2017

Understanding your Income Statement in QuickBooks Online

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Understanding your Income Statement or Profit and Loss using QuickBooks Online

When recording your own expenses, or setting up your chart of accounts it helps to understand what your reports will look like so you can make the right choices the first time around.

In this video I walk you through an Income Statement using the QuickBooks Online sample company.

The most important thing to understand is that all the income goes into the income section, and the expenses are divided between the Cost of Sales and Operating Expenses (with some exceptions that are outside the scope of this discussion).

The Gross Profit is what you have left after you have paid for the cost of the items and services you sell (Cost of Sales).  You need to ensure your gross profit is enough to cover the operating expenses and still leave you with a healthy net profit.  This can be done by keeping track of your income and expenses (QuickBooks Online is a perfect tool for this) and making changes to your business model as you go.  Much easier to do during the year, than at the end of the year, when it is too late!

If you would like more information you can comment below, request a more detailed explanation on my you tube link, or contact me through my site.

If you would like to sign up for QuickBooks Online you can do so here.

You can also sign up for my newsletter to be sure to receive lots of helpful tips and how-to videos to help you manage your business and its finances.

If you have any questions on this topic, or there is anything else you would me to show you please either leave a comment below or contact me here.

Understanding your Income Statement or Profit and Loss using QuickBooks Online

When recording your own expenses, or setting up your chart of accounts it helps to understand what your reports will look like so you can make the right choices the first time around.

In this video I walk you through an Income Statement using the QuickBooks Online sample company.

The most important thing to understand is that all the income goes into the income section, and the expenses are divided between the Cost of Sales and Operating Expenses (with some exceptions that are outside the scope of this discussion).

The Gross Profit is what you have left after you have paid for the cost of the items and services you sell (Cost of Sales).  You need to ensure your gross profit is enough to cover the operating expenses and still leave you with a healthy net profit.  This can be done by keeping track of your income and expenses (QuickBooks Online is a perfect tool for this) and making changes to your business model as you go.  Much easier to do during the year, than at the end of the year, when it is too late!

If you would like more information you can comment below, request a more detailed explanation on my you tube link, or contact me through my site.

If you would like to sign up for QuickBooks Online you can do so here.

You can also sign up for my newsletter to be sure to receive lots of helpful tips and how-to videos to help you manage your business and its finances.

If you have any questions on this topic, or there is anything else you would me to show you please either leave a comment below or contact me here.

Still need help?
Check this out.

Let's go!

Still need help?

We have what you need. Check out our courses and free resources to get more help managing your finances.

Let's go!