While in QuickBooks and viewing my client’s P&L report, I realized that it didn’t show the breakdown of where the money came from. This particular client does not invoice using QuickBooks so the information wasn’t being tracked. I wasn’t going to add more work to the client’s bill for duplicating invoicing. So, instead I created a different way to track this information. So to save paper, money and help the client, I created this quick trick on how to show income breakdown on P&L. Check out my tips and see if it will work for you and your small business.
My client’s P&L report is more detailed than other bookkeepers P&L report. I like to do is create a subcategory name under Chart of account:Income.
Here are benefits for doing this:
- When you view the P&L, you can see how much was received from each clients or events.
- By doing this it doesn’t affect the accountant totals because the P&L still gives them a total earned sections.
- You do not need to print out a separate sales report to view the total from each client.
- If you do not do invoicing in your QuickBooks account, you can easily see these totals and be able to compare it to your invoices. Great way to double-check.
Here’s how I did it.
First, I open up an “Add New Account” window in Chart of Accounts.
Then, I typed in the Account Name area the name of the client or the event name. I made sure it was an Account Type: Income. Use the event name if you have catering jobs or contracting jobs that you want to track.
Check Sub-account of and select INCOME.
Then press Save & Close.
It shows up like this on the Chart of Account list.
So, when you enter a deposit in your QuickBooks Register, you would select Income:bob smith chart of category (or whatever you used) and write the amount deposited. Then, save it and close.
Then when you view your P&L you will see this subcategory Bob Smith under income broken out.
Here are other Tips:
- Stay consistent with your sub-chart of account names. This will help if you what to do a comparison from year to year.
- Start subcategories your income at the beginning of the year so you don’t have to do the entire year.
It’s pretty easy to set up! I hope this helps you view your breakdown and total income and expenses quickly and easily. Share if you agree. If you need help setting this up, contact me. Feel free to leave comments or questions below.
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