Comprehending your business finances is a function of knowing your gross receipts. As you prepare for tax reports, apply for funding, or just track performance, output gross receipts, which are your total income generated by the business for a particular time frame. In QuickBooks, this info is easy to find once you know the right places to look.
This guide breaks down what gross receipts are in QuickBooks, how they differ from gross sales, and also goes through the steps to identify and calculate them.
What Are Gross Receipts in QuickBooks?
Gross revenue is what your business takes in total from all of its sales without taking out any expenses, discounts, returns, or reductions. This includes not only sales revenue but also other income that may come in of a different nature.
- Interest income
- Dividends
- Service fees
- Refunds or rebates
- Rental or miscellaneous income
In QuickBooks, gross receipts are presented on an account-by-account basis as opposed to a single predefined number.
Gross Receipts vs Gross Sales: Key Difference
In many cases, the terms are used interchangeably, but they are not the same in accounting.
- Gross sales are only the income from what is sold of products and services before discounts or returns.
- Gross revenue includes sales total and also all other income that the business reports for the same time period.
For tax and reporting, which is what many authorities do, we have the idea that gross receipts give a full picture of what the total income is.
Steps for reporting Gross Receipts in QuickBooks Online
QuickBooks Online does not feature a dedicated “gross receipts” report. But we do have an easy solution for that.
Follow these steps carefully: Carefully follow these steps:.
- Log in to QuickBooks Online
Log in with your credentials.
- Go to Reports
From within the left-hand navigation menu, click Reports.
- Open the Profit and Loss Report
In the search bar, type in and choose the Profit and Loss report.
- Customize the Report
Click to customize at the top of the report.
- Select the Report Period
Select your time frame for which you want to determine gross receipts (monthly, quarterly, or yearly).
- Apply Filters
- Go to the Filter section.
- Choose your Account (or Distribution Account, as it is in some versions).
- Choose all Income accounts.
- Run the Report
Click to run the report, which will produce the custom view.
The total, which is reported under income, is of your gross receipts for that which you have selected.
How to Calculate Gross Receipts in QuickBooks
1.Select the proper accounting method
QuickBooks uses both cash and accrual accounting methods.
Cash basis accounting reports income upon receipt of payment.
Accrual accounting recognizes income at the time it is earned, which may not correspond to when payment is received.
Make sure you use the method that your business does.
2.Choose a steady time frame
Gross income should be calculated over a set period of time, like a month, quarter, or fiscal year. Consistency is key in comparison and financial analysis.
3.Report All Income Sources
Review, go over your sales reports, check your bank deposits, and other income sources’ reports. Put in categories which revenues go into which income accounts.
4.Add up all income totals
Once you have included all income in your report, the total is your gross receipts.
Why Tracking Gross Receipts Matters
- Tax compliance: Some states and local governments base taxes on gross receipts instead of net profit.
- Financial analysis: It also reports on business growth and revenue trends.
- Loan and funding applications: In terms of loan and funding apps, we see that companies present accurate revenue reports as a key factor in determining business stability.
- Audit readiness: For audit preparedness, we note that which businesses have their documents in order will reduce errors and, at the same time, ease audits.
Preventing these errors ensures your gross receipts are accurate.
Conclusion
Gross receipts in QuickBooks are easy to find once you get the hang of how income is reported in the system. Via the Profit and Loss report, which you may customize to include only income accounts, you can quickly see your total gross receipts for any time frame. By going through the processes and best practices put forth above, you can track and manage your business revenue in QuickBooks.
