QuickBooks Financial Reports Preparation FAQS

• In what way to Prepare Financial Statements on Quickbooks Pro?
• How to Create a Balance Sheet in QuickBooks?
• Does QuickBooks Make Financial Statements?
• What Are the Benefits of Financial Statements in Small Businesses?

1. In what way to Prepare Financial Statements on Quickbooks Pro?

QuickBooks Pro allows users to prepare financial statements based on the data saved in the application. Financial statements are a valuable resource because they can benefit businesses to review their financial history, see accurately what their current financial status is and then use the information to plan for the future. You can prepare a financial statement through using the Intuit Statement Writer (ISW) add-on. The add-on is built in in some versions of QuickBooks, or it can be downloaded from the Intuit website. The ISW add-on needs Microsoft Excel to also remain installed on the computer to display the statements.

2. How to Create a Balance Sheet in QuickBooks?

A business balance sheet is the snapshot of a company's financial status for a specific time frame. Included in the balance sheet are the company's total assets, liabilities and equity. The QuickBooks software program can quickly generate this financial statement through the use of its company reports tool.

3. Does QuickBooks Make Financial Statements?

QuickBooks offers four types of financial reports. The Trial Balance Report gives a list of the credits and debits of each account you have in QuickBooks. The Profit and Loss Report gives a summary of your income and expenses and tells you if your company is making a profit. The Balance Sheet totals your income, expense, liabilities and the value of your assets and equity to make sure the accounts have equal debit and credit amounts. The Cash Flows Report tells you how you spend your money and how your profit grows over time.

4. What Are the Benefits of Financial Statements in Small Businesses?

Financial statements consist of an income statement, balance sheet, cash flow statement and statement of owner's equity. Companies generate financial statements with the intent of providing useful and reliable financial information to investors, creditors and managers. Information in a company's financial statement is communicated in dollar amounts. Small businesses should prepare financial statements through following usually accepted accounting principles, according to the Reference for Business. Keeping perfect financial statements offers a number of benefits for small businesses. 26