In today’s ever-evolving business landscape, having a comprehensive understanding of the financial position of a business is the utmost priority of an entrepreneur. It facilitates informed decision-making, enhances strategic planning, and fosters against market fluctuations. A balance sheet report is one of your best allies to determine your accounting capabilities because it is more than just a financial statement. In a nutshell, a balance sheet is a snapshot of your company’s stability and viability. Many small and mid-size businesses use QuickBooks Online as their primary accounting solution. By mastering the process of generating a balance sheet in QuickBooks Online, one can easily analyze the value of their assets and liabilities, enabling informed decision-making and strategic planning.
In this blog, we will guide you through the vital steps to run this crucial report in QuickBooks Online. Let’s explore how to elevate your financial management with confidence and clarity.
Balance Sheet in QuickBooks Online
A balance sheet in QuickBooks is a report card that captures a snapshot of the financial health of your business. It reveals what you own (assets), what you owe (liabilities), and your overall net worth (equity) to have a clear understanding of your business. With a pre-installed balance sheet template in QuickBooks, it has become convenient for businesses to generate this report effortlessly.
Balance Sheet comprises of a simple equation: Shareholder’s Equity = Assets-Liabilities)
Assets: Assets are the resources owned by a company that have economic value and can generate cash flow in the future. For example: Machinery, Inventory, Cash-In-Hand, etc.
Liabilities: Obligations or debts that a company owes to external parties, which must be settled in the future. For example: Accounts Payable, Short-Term Loans, Long-Term Debt, etc.
Shareholder’s Equity: The residual interest in the assets of a company after deducting liabilities, representing the owner’s claim on the company. For example: Common Stock, Retained Earnings, Paid-up capital, etc
Balance Sheet: A balance sheet comprises all the company’s assets, liabilities, and equity to show the financial position of the company during a specific period.
Run a Balance Sheet Report in QuickBooks Online
- Open QuickBooks, and Navigate to the Reports section.
- From the Reports section, choose Business Overview.
- Now find and select the Balance Sheet.
- Choose the date range to view the report.
- Select the option Run Report.
Now the balance sheet report will appear on your screen. You can either view this in your browser or export it to a pdf or Excel file. The QuickBooks Balance Sheet report offers valuable insights into your financial standing, helping you identify trends, manage cash flow, and strategize for future growth.
Filter By Location
Balance Sheet and Profit & Loss, both can be filtered by Location because when you save the transaction, they are directly linked to both the header and detail. To filter or run a balance sheet by location in QuickBooks online, follow the below-mentioned steps:
- In QuickBooks, navigate to Reports.
- Then search and open the Balance Sheet.
- From the dropdown menu ▼ select Location from the display columns.
- Now click on Run Report.
By following these steps you will be able to run a balance sheet by location in QuickBooks online successfully.
Filter By Class
If you are looking for How to run a balance sheet by class in QuickBooks Online then it is not possible to filter or run the same. It is so because the classes are only linked to ‘details’ but the ‘header’ is not linked to classes. However, you can display columns by classes for the balance sheet. This cannot be accurate. They are not sorted by class as they are included under the section ‘Not Specified’.
Conclusion
Mastering the ability to create a balance sheet in QuickBooks is a pivotal step toward gaining a deeper understanding of your company’s financial position. With a range of intuitive features, you can analyze your balance sheet report in QuickBooks Online to get valuable insights into your core business operations. Regularly running and reviewing this report can enhance your decision-making capabilities and strengthen your financial management strategies.
With a well-prepared balance sheet at your fingertips, you are better equipped to navigate the challenges of the business landscape. Handling and running balance sheet reports effectively in QuickBooks Online paves the way to ultimate financial success. Connect with our QuickBooks Reporting experts to discover a clear angle of your business.
