How to create, edit, and manage a budget in QuickBooks?

A budget is a plan in monetary terms made and approved prior to a defined period of time usually reflecting planned income to be generated and/or expenditure to be incurred during the period. A correct budget can be the key to success in your business. Businesses create budgets and use them to track their actual sales and expenses. As we have already known what budget is and how important it can be for your business and financial activities. In this blog, we will focus on How to create, edit, and manage the budget in QuickBooks? So, now without wasting time let’s jump right into it.

Create, edit, and manage QuickBooks budget

You can easily create a budget using your accounting data in QuickBooks Online. You can use them to run financial reports and compare them with your budget. After successfully creating them you can review them or edit them later. You can create the budget anytime. But it is recommended to create a budget at the end of the year to start planning for the next year. To create a budget you have to sign in as a user with permission to access, create, or delete budgets in QuickBooks online. After that follow these steps shown below:

Create a Budget in QuickBooks?

#1 Set the starting month of your financial year

1. Reach out to Settings.
2. Choose Account and settings.
3. And then select Advanced.
4. In the Accounting section, make sure that the setting in the starting month of the financial year field is correct, or choose Edit to change the setting.
5. Tap on Save and select Done.
6. You are done.

Once you have verified that your financial year is correct, you can review the data you plan to base your budget on.

#2 Get your budget data

Budget can be created on data from the current financial year or data from previous financial years. If you make a budget on the previous year’s data you can have a good idea of profit and loss of previous years and you can also be assured that transactions you made in the past were correct. And if you make a budget using the current financial year data deposit will be helpful to you in the coming time. 

By default, the report shows transactions created during the current financial year to the current date. And if you want the report from previous financial years you can follow the steps shown below:

1. Reach out to the Reports.
2. Find and open the Profit and Loss Detail report.
3. Choose Last Financial Year from the Report period drop-down list to use the previous year’s data. 
4. Tap on the Run report when you are done.

#3 Create your budget

1. Reach out to the Settings and then choose Budgeting.
2. Tap on Add budget.
3. Fill in the budget name in the Name field.
4. Choose the financial year from the Financial Year drop-down list.
5. Choose the budget as Monthly, Quarterly, or Yearly according to your needs.
6. You can alter the pre-entered data from the Pre-fill data drop-down list if you want.
7. You can also specify whether to split the budget by Class, Customer, or Location, then specify what class, customer, or location to add to the budget.
8. Tap on Next.
9. If you didn’t use the Pre-fill data option, enter the budget data into the table.
10. Select Save or Save and close.

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Run budget reports

By running the budget reports you can keep track of your budget goals. This budget report summarises budgets by account. You can also see how much you’re under or over budget. Here are the steps by which you can run a budget report in QuickBooks:

1. Reach out to Settings and choose Budgeting.
2. Locate your budget on the list.
3. Choose the Action dropdown and then Run Budget Overview report or Run Budgets vs. Actuals report.

Edit a budget in QuickBooks

You can edit a budget or add something new to the previous budget. If you have made any mistakes then you can also rectify them. Here we have shown the steps by which you can edit a budget and make changes in Quickbooks.

1. Reach out to the Settings and choose Budgeting.
2. Locate your budget on the list.
3. Tap on the Action dropdown and then choose Edit.
4. Edit each account for one month at a time.
5. If you want to change the time period from month-to-month to quarterly or yearly, select the Gear at the top of the budget. Then make your choice.
6. Finally, tap on Save.

Copy an existing budget

Sometimes it is frustrating when you have to start from the beginning each time. So to solve this issue we can copy the existing budget and then we don’t have to start from scratch. Such as you can start this year’s budget from the previous year’s one. In this process, a separate copy will be saved. To copy an existing budget you can follow the steps shown below:

1. Reach out to the Settings and choose Budgeting.
2. Locate your budget on the list.
3. From the Action column, choose Copy.
4. Enter the new budget name and financial year on the Copy Budget screen.
5. Choose to Create a Budget.
6. Update the budget amounts as per requirements.
7. When you are done, select Save or Save and close.

Delete a budget in QuickBooks

Delete a budget only when you are sure that this budget won’t be used any further. Because if you delete a budget once you cannot recover it. Delete a budget if it is completely useless to you.

1. Reach out to the Settings and choose Budgeting.
2. Locate your budget on the list.
3. Select the Action dropdown and then choose Delete.
4. Now you successfully deleted the Budget.

Conclusion:

Now you know how to create, edit, and manage the budget in QuickBooks. We hope you will find the article helpful and all your queries are resolved now. If this blog wasn’t helpful to you and you want to know more about the How to create, edit, and manage a budget in QuickBooks we advise you to consult help from the experts. Call toll-free phone number +1-844-405-0904 to get connect a QuickBooks ProAdvisor.