Gross receipts are basically the total amount of all the receipts in cash or property with no adjustment for deductible items or expenses. Gross receipts in QuickBooks record everything that is not even related to the usual business activity of the entity such as interest, tax refunds, dividend income, donations, and others. In addition, a gross receipt does not account for price adjustment or discounts. Instead of sales tax or corporate income tax, some local tax jurisdictions and states impose taxes on the gross receipt.
QuickBooks allows you to monitor the income of your company from sales so you can subtract the amount of the sold goods. This helps you to determine the net. If you have no earthly clue about this, we will show you how to find gross receipts in QuickBooks Online.
What Do You Understand By Gross Sales and Gross Receipts in QuickBooks?
Gross receipts and gross sales is a type of measure that helps youtube determine the amount of your revenue generated by the company’s trade. This does not consider any type of credits, allowances, and discounts that have been entered with a product in order to boost the sale.
Gross sale is a necessary metric to determine the popularity of the product for inventory purposes. However, it is considered a poor measure for checking the business performance because it does not regard profitability or expenses.
Both gross sales and gross receipt state the total money that a specific business has obtained in a specific period. The main difference between them is that gross sales refers to the sales income whereas gross receipts consist of income from non-sales sources such as donations, interest, dividends, etc.
How Do I Find My Gross Receipts in QuickBooks?
QuickBooks provides reporting tools that help you to show the gross income and sales. In addition, you can track the income from shipping interest, sales tax, and other charges that your company may incur.
By running certain reports, you can easily find out the gross receipts and calculate the net. This should be noted that there is not any specific gross receipts report in QuickBooks Online. However, you can run the Profit and Loss report. By using these reports, you can track your income for a certain time period. Make sure you customise the report only for the income account. This will help you to get an appropriate report so you can track the sales and monitor the business growth.
- Click on the “Reports” menu located on the left.
- Then, search for the “Profit and Loss” report using the search bar.
- After this, select the “Customize” option.
- Switch to the “Report Period” section and choose the date.
- Hit the “Filter” button.
- Here, you can place the checkmark for the “Distribution Account” option.
- Also, select the income account.
- Once done, press the “Run report” button.
You can also customize this report to get the details you are looking for. If required, you can save the customization settings by clicking on the memorize the report button.
How to Record the Gross Sales in QuickBooks?
To record the gross sales in your QuickBooks account, you need to prepare the sales receipt or invoice. Thereafter, you can add the relevant details such as customer name, items, quantity, amounts, and then save the details. Have a look at the following steps to record gross receipts in QuickBooks:
- Click on the “Create Invoices” or “Create Sales Receipts” option.
- Then, choose the “Customer” drop-down.
- Click on the relevant customer. In case you want to set up a new customer then click on the “Add New” option and pursue the on-screen instructions.
- Now, start adding the items sold. You can use the drop-down list in a particular items section of a particular sales receipt and invoice.
- After that, go to the “Quantity” field and add the quantity for each item.
- Add the fees or service charges in the “Items” column.
- Then, manage the rates in the “Amounts” column.
- Press the “Save and Close” button. You can also click on the “Save and New” button.
After this, you can repeat the same process along with the sales of the organization in order to register your gross sales.
How to Create the Gross Sales Report in QuickBooks?
To create the gross receipts report in QuickBooks Online, you can go to the Reports menu and open the Accountant and Taxes tab. After this, you can click on the Income Tax Summary. Here, you can adjust the date range and enter the amount. Let us help you with detailed steps:
- Click on the “Reports” menu.
- Then, click on the “Accountant and Taxes” option.
- Choose the “Income Tax Summary” option.
- At this point, you can adjust the date range for which you want to get the gross sales report.
- Once done, hit the “Enter” key.
The amount you will see under the Gross Receipts or Gross Sales is basically the gross sales for that particular period.
How Do I Calculate Gross Receipts in QuickBooks?
To calculate the gross receipts, you need to keep a few points into consideration. Here, we are showing all the steps you will have to follow to calculate the gross receipts for your business:
- First of all, you have to finalize a time period for which you want to measure. Then, a financial measure is created for this particular period. Make sure you take a general time period when you measure business activity. For example, monthly, quarterly, and annually.
- Then, you need to check if the business functions under the cash or accrual accounting system.
- The accrual accounting system recognizes income when a service to the customer is done or product is delivered.
- On the other hand, the cash accounting system recognizes sales when they are recovered from the customer.
- Although many companies prefer the accrual system, some small businesses may function under a cash system.
- Now, you can arrange all the invoices along with the receipts of services provided or products sold for the time period. This will provide the amount that you will have to use for evaluating the gross sales.
- Once done, you can combine all the sums from the product sold or services rendered in the financial period. This will help in evaluating the business gross receipts.
To Wind Up
Here, we have shown the meaning of gross sales and gross receipts. Besides that, we explained how you can find the gross receipts, record the gross sales, create the gross sales reports, and calculate the gross receipts in QuickBooks Online. We hope you find this guide informative to calculate the gross receipts in QuickBooks.
QuickBooks also allows you to run the uncleared transactions report or record security deposit refunds. Read the following guides for better understanding:
- How to Run Uncleared Transactions Report in QuickBooks Desktop?
- How to Record Security Deposit Refund in QuickBooks?