Mastering Budgeting - QuickBooks
Chartered Accountants
Tax Practitioners Board
Quick Books
09 Nov 2023

Mastering Budgeting in QuickBooks: A Step-by-Step Tutorial

Any good business accountants in Melbourne will tell you that budgeting is the foundation of sound financial management for small businesses. It provides a roadmap to reach financial goals and ensures that resources are allocated wisely. QuickBooks, a widely used accounting software, offers robust budgeting features to simplify the process. In this step-by-step tutorial, we’ll guide you through setting up and effectively managing budgets using QuickBooks, empowering small businesses to take control of their financial future.

Step 1: Accessing Budgeting in QuickBooks

  • Log in to your QuickBooks account and navigate to the ‘Reports’ menu.
  • In the ‘Budgets’ section, click ‘Set Up Budgets.’

Step 2: Create a New Budget

  • Click ‘New Budget’ to start creating a budget.
  • Choose the fiscal year or budget period you want to create the budget for.

Step 3: Select Budget Type

  • QuickBooks offers two types of budgets: ‘Profit and Loss’ and ‘Balance Sheet.’ Choose the one that aligns with your budgeting goals.

Step 4: Defining Budget Details

  • Enter a name for your budget, and select the ‘Subdivide by’ option, which could be customers, jobs or classes.
  • Choose whether to make your budget ‘Active’ or ‘Inactive.’
  • Click ‘Next’ to proceed.

Step 5: Setting Up Budget Numbers

  • QuickBooks provides an interface for you to enter budget numbers for each income and expense category.
  • Add lines and enter budget amounts based on your business’s financial goals.

Step 6: Save and Finish

  • After entering all budget figures, click ‘Save and Finish.’
  • Your budget is now set up and ready for use.

Step 7: Monitoring Your Budget

  • To track budget performance, go to the ‘Reports’ menu.
  • In the ‘Budgets’ section, select the budget you want to view.
  • QuickBooks generates reports that show how your actual financial performance compares to your budget.

Step 8: Customising Budget Reports

  • QuickBooks allows you to customise budget reports by adjusting the date range, running reports for specific customers or classes, and more.

Budgeting Tips & Best Practices

  • Regular Updates – Maintain an updated budget. As your financial situation changes, revisit and adjust your budget accordingly.
  • Track Variances – Regularly review budget reports to identify areas where your actual expenses or income differ significantly from your budget.
  • Use Historical Data – Consider using historical financial data to inform your budgeting decisions.
  • Set Clear Objectives – Ensure your budget aligns with your business goals, whether it’s cost reduction, revenue growth or debt reduction.
  • Collaborate – Involve key team members in the budgeting process. Their insights can lead to more accurate budgets.


Mastering budgeting in QuickBooks is a pivotal step for small businesses aiming to achieve their financial goals. By following this step-by-step tutorial and adhering to best practices, small business owners can leverage QuickBooks to create, manage and analyse budgets that empower them to make informed financial decisions.

For further tips on how to master budgeting in QuickBooks, contact Alexander Bright – a trusted accounting firm offering a wide range of accounting services in Melbourne.

Disclaimer: The accounting advice provided in this article is for informational purposes only and should be self-verified or consulted with a qualified accountant before making any financial decisions.

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