How to Set up and Use Budgets in QuickBooks

Posted by on Aug 10, 2011 in Budgets | 5 comments


If you are a new company or haven’t yet set up a budget for your business, then what are you waiting for? In this economic crunch, if you’re not not keeping on top of your cash flow, then you’re probably in trouble.

QuickBooks has a feature that allow you to set up a budget based on a few variations. I’m going to show you how using your Profit & Loss as the guideline.

Starting at the Home and from the Menu Bar, click on Company/Planning & Budgeting/Set Up Budgets. This will open up the Create New Budget window where I will have a couple of choices.

I need to pick the fiscal year and budget type. As mentioned previously I am going to use the Profit and Loss.  So using the default P&L I click on Next and then accept the No Additional criteria default and Next.

Choosing how I want QuickBooks to create this budget is next, where I will click on the button that says Create budget from previous year’s actual data.

Now if I was a new company without any data then I would have to choose Create budget from scratch and then click on Finish.


In the Set Up Budgets window, QuickBooks has filled in all the amounts from the previous years Profit & Loss accounts. I can perform a variety of functions from this window.

In this example I have used the 53000 Subcontractor account to budget for 2000.00 a month. Once I insert the amount into the January column, I can either Copy it Across the row or Adjust the Row Amounts.

If I chose Adjust the Row Amounts I could either increase each month by a dollar amount or a percentage. I could also decrease the amount by a dollar amount or percentage.



I am going to Copy Across the 2000.00 amount.



Next I am going to use the Travel account and Adjust the row amounts by 20% using 700.00 to start with.

Here I have to make sure that I click on the Enable compounding box for this amount to work.

In finishing I will click on Save and then OK.


Going to Reports/Budgets/Budget Overview will display the report on the right and during the fiscal year I can compare the Budget vs. Actual report to see how well it is working. is now mobile friendly. From the web address you can choose Options/Mobile formatted and the site will appear in all its living colour for you to view. Check it out.

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5 Responses to “How to Set up and Use Budgets in QuickBooks”

  1. Thank you Sir!

    It was so refreshing to come across your site. What an absolute pleasant experience!

    Thank you for being kind enough to take the time and post this!!!

    Canadians really do ROCK!!!!

    All the best

    Lucy De Luca
    Toronto, ON

  2. Vicki Wares says:

    Thank you … thank you for sharing your expertise!

    So direct and straight-forward. I can do it!

    This is the 3rd year I have attempted to create a budget and have just floundered around with spreadsheet that isn’t MINE. Now, at least one more American can ROCK too.

  3. How do you create a budget for a non-calendar year?? We have a fiscal year of June 1-May 31!

    • Hi Minta, with the info you gave me that sounds like a normal fiscal year. Your budget can done by using your last years Profit & Loss which will take care of the months you require. I would also suggest you contact a QB’s ProAdvisor in your area.

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