Step by step process of creating budget in QuickBooks Online

Budgets are one of the most essential roadmaps for every type of business. Without having a clear budget, your company will be shooting in dark while creating a future plan or strategy. A proper budget shapes your plans in the most profound way possible and thus it results in better outcomes. It also helps your business to identify available capital, estimate expenditures and forecast revenue. So with a solid budget, your company will be able to have an in-depth analysis of how much money it is going to spend in the future.

There are various ways of creating budget but one of the most efficient ways is through QuickBooks online. Although the app is an accounting platform but one can’t ignore its capability of creating effective budgets. With the help of this dynamic app, you can create budget in the quickest and accurate way possible. In this article, we have mentioned the step by step process of creating budget in QuickBooks Online which will shape your financial planning in a perfect way.
But Before creating a budget, you need to make sure that your Fiscal Year is correct because the budget starts with the first month of the fiscal year. So firstly let’s see that how can you check the fiscal year in QuickBooks Online.

• Click on the Gear icon which is located next to your company name
• After that, in the Setting column, click on Company Settings
• Then from the left side of the dialogue box, click on Advanced
• Now check the first month of your fiscal year in the Accounting section and make sure it is correct.
• Finally click on OK.

 
How to create budget in QuickBooks Online?

1. Click on the Gear icon located next to your company name
2. From the drop down menu of the Tools Column, choose Budgeting
3. Then from the page that appears to create a new budget, click on Add Budget
4. In the Name field of the New Budget window, enter the name of the budget 
5. Select the Fiscal year of the budget from the Fiscal Year drop down
6. Choose the time interval from Monthly, Quarterly or Annual, to show in the budget from the Interval drop down
7. Select no or from prior years in the Pre-Fill Data
8. Choose from the three options of Subdivided by which are, Don’t subdivide, Location, Classes and Customers
9. Click on Next
10. Select from the available category and enter the budget amounts. Don’t forget to click on Save before moving to the next category budget amount.
11. After entering the budget amount for all the subdivided categories, click on Save and Close.

​Important thing to know about Budget in QuickBooks Online

• This feature can be used for creating budget once in a year and there is no budget forecasting in this process.
• Your existing budget will not be affected due to the creation of new budget
• You can enter decimal amounts in the budget and it will not be rounded off after addition
• Created budgets can’t be combined

So, create an accurate and effective budget in QuickBooks online and shape your financial planning in the best way possible.

Saurabh

Saurabh Gupta is a technical content writer with MyQbHost. He is having expertise in cloud based accounting software and has written various articles related to QuickBooks hosting and other cloud based accounting software. ​