by Intuit• Updated 1 year ago
Learn how to use your data to create budgets and forecasts.
QuickBooks Desktop has budgeting and forecasting tools to help you plan and make smart business decisions.
Step 1: Review last year's data
Before you can set up a budget or forecast, make sure your fiscal year is set correctly.
- Go to theCompany menu and selectMy Company.
- Select the pencil iconand then Report Information.
- Make sure the first month of your fiscal year is correct.
Then, review last fiscal year's financial reports.
- Go to theReportsmenu and hover overCompany & Financial.
- SelectProfit & Loss Detail or Balance Sheet Detail depending on whatyou want to forecast or budget for.
- From the Dates dropdown, selectLast Fiscal Year.
- SelectRefresh.
- (Optional) You can memorize this report for later use.
Step 2: Set up a budget or forecast
Now you have reports you can use to make a budget or a forecast.
Create a budget
You can create next year's budget from scratch, or use last year's Profit and Loss data to start one.
- Go to theCompany menu and hover over Planning & Budgeting. Then selectSet Up Budgets.
- SelectCreate New Budget.
- Set the fiscal year for the budget, then choose eitherProfit and Loss and Balance Sheet. Then selectNext. If you select Profit and Loss, you can add additional criteria, such as Jobs or Class tracking.
- If you select Profit and Loss, select either Create budget from scratch orCreate budget from the previous year's actual data.
- Select Finish.
Tip: If you rename an account you use to create a budget, it unlinks it from the budget. You'll need to recreate the budget using the new account name.
Create a forecast
If you use QuickBooks Desktop Premier, Accountant, or Enterprise, you can also createforecasts to predict future revenue and cash flow. You can create a financial forecast from scratch, or from last year's data.
- Go to theCompany menu and hover over Planning & Budgeting. Then selectSet Up Forecast.
- SelectCreate New Forecast.
- Set the fiscal year for the forecast.You can also specify additional criteria, such as Jobs or Class tracking, but this is optional.
- Select eitherCreate forecast from scratch orCreate forecast from the previous year's actual data.
- Select Finish.
Step 2: Review your budgets and forecasts
Go to theReports menu and selectBudgets and Forecasts.
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FAQs
A plan, or the budget, outlines a company's financial goals and objectives. It sets targets for revenue, expenses, and cash flow. A forecast is a forward-looking analysis that projects future financial performance based on current information and market trends.
How to create a forecast in QuickBooks Desktop? ›
Create a forecast
- Go to the Company menu and hover over Planning & Budgeting. Then select Set Up Forecast.
- Select Create New Forecast.
- Set the fiscal year for the forecast. ...
- Select either Create forecast from scratch or Create forecast from the previous year's actual data.
- Select Finish.
Note: QuickBooks Online creates the forecast accounts list based on your chart of accounts. If you need more accounts in your forecast, add them to your chart of accounts before you create the forecast. To create a forecast, you can use your past financial data in QuickBooks Online.
How to make a budget in QuickBooks Desktop? ›
Budgeting in QuickBooks Desktop
- Within Desktop, go to Company > Planning & Budgeting > Set Up Budgets.
- Update the year you are making the budget for, and choose the budget type. ...
- Select any additional criteria, which could be done by Customer/Job or by Class segment, or you can choose no additional criteria.
What Comes First, a Budget or a Forecast? Typically a budget is created before a financial forecast. A budget reveals the shape or direction of a company's finance, while the forecast tracks whether or not the company is meeting its financial goals as outlined in the budget.
How does a budget compare to a forecast? ›
A budget is a fairly static document often used to set spending limits. It enables companies to create a culture of accountability for their financial results. A forecast reflects more real-time estimates of financial results and is updated on a more regular basis.
Is QuickBooks phasing out desktop? ›
Intuit has made a decision that after July 31, 2024, it'll no longer sell new subscriptions of the following products: QuickBooks Desktop Pro Plus. QuickBooks Desktop Premier Plus. QuickBooks Desktop Mac Plus.
Does QuickBooks have a budgeting tool? ›
With all your financial data in QuickBooks, you can create both profit and loss or balance sheet budgets you need for your company. This gives you an overview to help compare your actual income and expenses with your budget.
Is there a budget template in QuickBooks? ›
Is there a free budget template? Yes, our QuickBooks free business budget template can provide you with a structured format to help you better organize your financial data. You can customize it to suit your business type to ensure that you're covering all the essentials of budgeting for your business.
Can you use QuickBooks for personal Budgeting? ›
QuickBooks is a great tool to help you manage your cash flow closely, giving you the freedom to flex the amounts you pay into your savings each month, based on any excess that is left in your budget once all of your bills have been paid.
In QuickBooks Online, go to “Reports.” Under the “Business Overview” category, select “Budget vs. Actuals.” Select your budget from the drop-down menu at the top of the screen.
What is the difference between forecast and budget report? ›
While a budget outlines your company's expectations for the given period, a forecast attempts to predict what you'll actually achieve. In practice, this means budgets tend to be more detailed, while forecasts are usually more strategic and high-level.
What is the difference between business forecasting and budget? ›
The difference between budgeting and forecasting comes down to their specific roles in your business. While a forecast paints the big picture in terms of what the company wants to achieve and the different factors involved, a budget is a step-by-step financial plan showing revenue expectations and expenses over time.
Is a cash flow forecast the same as a budget? ›
A budget covers a year or longer and focuses on income and expenses, while a cash flow forecast (generally) covers a shorter period and focuses on the timing of cash inflows and outflows.
What is the difference between forecast for project cost and its budget? ›
Forecasting is an estimate of costs (or other relevant financial factors), while budgets define the amount of resources the business will allocate to complete the project. In other words, forecasting is earlier in the planning process, and budgets are set closer to the execution stage.
