Are you looking for the process to set up and use different reports in QuickBooks for getting better understanding of cash flow. If you are not aware what cash flow is, it is the amount of money moving in and out of the business and bank account. In QuickBooks, the users can make use of different reports and projections to get a clear look at the current and future businesses finances. In today’s post, we are going to discuss in detail about the process to track cash flow in QuickBooks desktop.

Thus, give a thorough reading to this post and unleash the step by step process of tracking cash flow in QuickBooks. But if in case you need any sort of technical assistance at any point of time, you can directly connect with our QuickBooks professionals at 1-800-761-1787. We will help you out in getting answers to all your queries.

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Identify your financial position

Step 1: Ensure that the data is accurate

Talking about the cash flow reporting, the very first things is to ensure that the books are accurate. All the reports will use the data in QuickBooks, so you have a clean starting point.

  • It is required to ensure that you have entered all the transactions into the QuickBooks.
    • In case you have set up bank feeds, it is required to download the transactions and tally them to the transactions in QuickBooks.
  • Reconciling the accounts in QuickBooks and ensure that they tally the real-life bank and credit card statements is important. In case any help is required for reconciling the account, it is recommended to reach out to the accountant.

In case the reconcile report matches the bank statement, you will be ready to start running the reports. In case they do not tally, you can fix the beginning balance issues in QuickBooks desktop.

Step 2: Using the financial reports to see the progress

The profit and loss report and balance sheet report will depict how the business is doing depending upon the data in QuickBooks:

Running a profit and loss report

You can run the profit and loss report for the past 3 months for getting an understanding of the average income and expenses for each month. The steps involved here are as follows:

  • First step is to navigate to the reports menu and then click on company and financial.
  • Also choose profit and loss detail.
Profit and loss detail - Screenshot Image
  • Followed by setting the date range for the past 3 months.
    • You need to note that if user wants to change what appears on the report, the user needs to select customize report and customize it based on the data required.
  • Once you are done, you can print, email, or export the report to excel.

Try to check out the top sources of revenue in the income. And for expenses pay attention to things like payroll, rent, insurance, and marketing expenses to see where the spending might be reduced.

Run a balance sheet detail report

The balance sheet report gives a financial snapshot of the company as of the specific date. This calculates the business’s worth by subtracting all the money the company owes from everything it owns.

  • Navigate to the reports menu and then click on company and financial.
  • Followed by selecting the balance sheet detail.
Balance sheet detail - Screenshot Image
  • Also choose customize report and customize it based on the data required.
  • Once done print, email, or export the report to excel.

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Optimizing the cash flow in QuickBooks desktop

Step 1: For this, set up a cash flow projection

With the help of upcoming bills and cash on hand, you need to see the way the cash flow looks for the next six weeks by creating a cash flow projection.

Step 2: Identifying the top selling items

You can make sure of the company snapshot, to see what customers are buying the most. This would help you in focusing on the top selling products or services. In order to run a best-selling item report, you can run the steps below:

  • The very initial step is to navigate to the company menu and then choose company snapshots.
  • After that, choose the add content and then choose the right arrow.
  • Followed by finding the best-selling items and then selecting add option.
  • And then, double click each product or service to see the detailed report.
    • Also note that in case you wish to change what appears on the report, you need to select the customize report and customize it based on the data needed.
  • Once done, you can print, email, or export the report to excel.

Step 3: Identify the customers having upcoming or overdue invoices

With the help of automated invoice payment reminders, QuickBooks will have to identify the customers with upcoming or overdue invoices. After it is set up, you will get a notification that have the payment reminders ready to send. Also you can review and approve them before they go out.

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Step 4: Check out the bills you need to pay

With the help of the bill tracker in QuickBooks, it is supposed to identify the pending and unpaid bills. After that you can pay them directly in QuickBooks desktop.

Step 5: Where to cut business spending

With the help of the company snapshot, you can see the top expenses and also check what can be done to reduce the spending. For running an expense breakdown report, you can carry out the steps below:

  • The very first step is to navigate to the company menu and then choose company snapshots.
  • And also select add content and then choose the right arrow.
  • Followed by finding expense breakdown and then select +Add keys.
  • Also, double click any wedge on the expense breakdown to see a detailed report.
    • It should be noted that if you want to change what appears on the report, choose customize report and then customize it based on the data needed.
Customize Report - Screenshot
  • Once you are done, print, email, or export the report to excel.

Step 6: See the top vendors for expense

In case the cash flow is causing a delay in paying the vendors, you might be able to negotiate the payment terms or delay paying bills until you are having the cash. In QuickBooks desktop, run a report to see the vendors you spend the most with. You can run the report by carrying out the steps below:

  • The initial step is to navigate to the company menu and then choose the company snapshots.
  • Also, choose add content, followed by selecting the right arrow twice.
  • From the top vendors by expense and then select + Add key.
  • Double click any vendor on the expense report to see the detailed report.
    • You are required to note that if you want to change what appears on the report, and then select the customize report and customize it based on the data needed.
  • After the process ends, print, email, or export the report to excel.

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Final words..!

We have tried to sum the entire process of tracking cash flow in QuickBooks desktop. And we expect that after reading the above steps you might be able to track the cash flow in QuickBooks. However, in case of any difficulty or if you need any further assistance, call us at 1-800-761-1787, and our QuickBooks enterprise technical support team will answer all your queries right away.

 

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