Historical comparison

[ChrisanneIves]

Setup QB2010 as of 1/1/11. Is there any way to enter historical values for revenues and expenses for the prior year such that my income statements can compare them? (Without recreating the entire year by transaction! )

Thanks,
C

[hartford]

Hi Chrisanne

Yes there is - this type of reporting is one of Quickbooks many strengths.
If you have a profit & loss account for the year to say 31/12/10 you can enter the totals for each type of income and expense by using the journal entry - Company>Make Journal entries.
Here you'll encounter debits and credits and I'm not sure of your knowledge on these - let us know.
Basically the expense figures will normally be debits and the income figures will be credits. All journals must balance the difference being the profit or loss.
If you have a balance sheet and A/R and A/P balances Quickbooks can also handle the opening balances.
Remember also you can change entries very easily so you don't have too worry too much about making mistakes.

[ChrisanneIves]

Thanks for responding Hartford. I am cash basis, Sub-S US corporation. Profit/loss is into Retained Earnings. Small company, annual CPA for tax purposes, but we prefer to watch monthly.

The journal entries correctly entered and dated 2010 would not give me problems. So...journal entry(ies) for the revenue and expenses which would be offset in Retained Earnings would provide that history? Doing so, what should I be on guard for in my 2011 entries, currently in balance?

Thanks for the help!
C

[Joe Williams]

That may work, but the best way is a JE for the Trial Balance for 2010.

[ChrisanneIves]

Now you lost me. Would you explain, please?

[Joe Williams]

If you run the Trial Balance report for 2010, it will give you the amounts (Credit and Debit) for each account. This will include all balance sheet accounts like the bank, asset, liability and equity accounts.
If you want to just enter the Income and Expense account amounts, then use Open Balance Equity as the last account entry ( QB will automatically enter the Credit/Debit amount).

[ChrisanneIves]

I'm sorry...I don't think I have been clear.

I currently have 2011 setup - recall this is a 1/1/11 new company setup (converted from online QB). It is working fine with correct balances for assets, liabilities and equity. I need no change to my balance sheet except as it may be affected by the following need.

Need: revenue and expenses for 2010 input to compare to 2011.

Do these post directly to opening balance equity, charging the revenue/expense account? I tested it and could not figure it out, so I guess I am in need of more explicit instruction to do this.

Thanks,
C

[Joe Williams]

Then use JE by month for the Income and Expenses with the difference using Retained Earnings.
Just remember that the amount in Retained Earnings may not be correct!

[ChrisanneIves]

OK, that's got it! Yep, I know RE will need special care. Another too-simple approach that I was jumping way past.

Thanks for the help,
C