Understanding reports in QuickBooks and making sure the data is flowing into the reports correctly is a critical component of successfully using the software. The company file in QuickBooks contains a complex data set and it is important to understand where the reports draw data. As you will see below, it is extremely helpful to have knowledge of basic accounting principles to fully understand reports and how data is fed into the reports. We highly recommend having your software initially set up by a QuickBooks Pro Advisor who will make sure the software is set up correctly and that critical data is being accurately fed to reports; you need to trust that your numbers are accurate when making important business decisions.
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Below is an overview of how data populates various reports in QuickBooks:
Company and Financial Reports
- Journal entries if the first line has an expense or income account
- Inventory adjustments if the account to offset the adjustment is an expense or income account
- Any liability adjustments that affect the accounts
The Balance Sheet Report (Standard) displays the source data as well as some target data drawn from:
- Purchase and sales transactions that have associated inventory items
- Inventory adjustments
- Checks for bill payment
- Received from Accounts/Deposits
The Statement of Cash Flows Report displays the target data as well as source data:
- Target data includes the bank accounts on bill payment checks and payments
- Source data includes the Accounts Payable accounts on bills and Accounts Receivable accounts on invoice
Receivable and Customer Reports
Four very common reports in QuickBooks include: Accounts Receivable aging summary, Open Invoice Report, and Customer Balance Summary and Customer Balance Detail. Data is fed from:
- Target data from the open deposits, open payments and open journal entries
- Source data from the statement charges, open invoices and credit memos
Payable and Vendor Reports
The four most common reports related to Vendors include: Accounts Payable Aging Summary, Unpaid Bills report, Vendor Balance Summary and Vendor Detail Summary. Data is fed from:
- Target data from the open journal entries and open bill payment checks
- Source data from the open item bills, receipts and bill credits
- On a QuickReport for an Account, the account that is selected determines whether the QuickReport displays target or source data
- The QuickReports for Items displays only the target data because Items are only used in targets
- A QuickReport for a Customer has a built in default filter; Detail Level=Summary Only. This means it displays only the source data of the transactions that include the customer and job name. You can remove this filter if you want to see all of the target and source information related to this Customer Job.
- A QuickReport for a Vendor also contains a default filter: Detail Level=Summary Only. This means it displays source data of transactions that include the name of the vendor only. You can remove the filter if you want to see the complete target and source information for the Vendor.
As you can easily see, it is important to have a basic understanding of accounting principles to fully understand how data is fed into reports in QuickBooks. We highly recommend consulting with an experienced QuickBooks Pro Advisor in the QBExpress network to assist you in accomplishing your goals with the software and in business.