Generating Monthly Financials
Generating monthly financial reports is essential for monitoring your client's business's financial health. Below are step-by-step instructions for creating standard financial reports—Balance Sheet and Profit & Loss (Income Statement)—in both QuickBooks Online and Xero.
In QuickBooks Online:
Access Reports:
Click on the Reports menu.
Generate Balance Sheet:
Locate and select Balance Sheet (it may be favorited for quick access).
Set the Report Period to the desired month (e.g., November).
Ensure the Accounting Method is set to Cash.
Click Run Report to generate the Balance Sheet.
Export the report by clicking the export icon and choosing Excel or PDF.
Generate Profit & Loss (Income Statement):
Return to the Reports menu.
Select Profit and Loss.
Set the Report Period to cover the desired timeframe (e.g., This Year to Last Month for year-to-date figures).
In the Columns section, select Months to display data month by month.
Ensure the Accounting Method is set to Cash.
Click Run Report to generate the Profit & Loss statement.
Review the report for any uncategorized transactions and address them as needed.
Export the report by clicking the export icon and choosing Excel or PDF.
In Xero:
Access Reports:
Navigate to the Accounting menu.
Select Reports.
Generate Balance Sheet:
Choose Balance Sheet from the list of reports.
Set the End Date to the last reconciled month (e.g., November 30).
For comparisons, select the number of previous months to display (e.g., last nine months).
Ensure the Accounting Basis is set to Cash.
Click Update to view the report.
To share with clients, export the report as a PDF for a clean presentation or as an Excel file if preferred.
Generate Profit & Loss (Income Statement):
Return to the Reports section.
Select Profit and Loss.
Set the Date Range to match the Balance Sheet period.
For comparisons, choose the desired number of previous months.
Ensure the Accounting Basis is set to Cash.
Click Update to view the report.
Export the report as a PDF or Excel file based on client preference.
By following these steps, you can efficiently produce and share monthly financial reports with your clients, providing them with a clear understanding of their financial standing.