How to Calculate Gross Sales and Gross Receipts in QuickBooks?

Monitoring Gross sales is most important before calculating the net profit in QuickBooks Online. You can calculate and observe all the income that is coming from the sales. Business owners can determine the net profit by subtracting the cost of goods sold from the revenue report of their company. In this blog, we will describe how to calculate gross sales and gross receipts in QuickBooks with essential steps.

An income can be tracked from shipping, interest, sales tax, and other charges that may be incurred by the company. The gross sales and income are displayed with the help of reporting tools in the QuickBooks Online account.

What are Gross Sales and Gross Receipts in QuickBooks?

Gross sales is a crucial amount that helps in calculating the revenue report created by sales in the QuickBooks Online version. You can find the total income from the sales which is generated by the company at the time of trading. The Cost of Goods Sold (COGS) can be subtracted from the created revenue report to calculate Gross Sales and Gross Receipts in QuickBooks.

Gross receipts are the money which is made by the business. This feature tracks all the records and reports apart from the business activities like donations, tax refunds, dividend income, interest, etc. The price adjustments or discounts are not tracked by a gross receipt, it is one of the drawbacks of this method.

How to Calculate Gross Sales in QuickBooks?

The gross sales can be calculated in QuickBooks Online with the help of the following steps:

Step 1: Record Gross Sales in QuickBooks

The gross sales that need to be recorded in QuickBooks Online are as follows:

  • Open your QuickBooks Online account and then click on the plus symbol.
  • Choose to create sales receipts or create invoices.
  • Open the list of all customers by selecting the customer option.
  • Select the correct customer from the list of all customers. Merge a customer to choose the correct customer.
  • Click on Add New to add new customers.
  • Open the drop-down menu of items and then add sold items.
  • Enter the quantity of each item in the quantity section.
  • Enter additional charges, fees, and services in the items section.
  • Under the amount tab, you can adjust the prices accordingly.
  • Click on Save and Close or Save and new button.
  • Repeat these steps to record all gross sales in the QuickBooks account.

Step 2: Create a Report of Gross Sales

A gross sales report can be created in the following steps:

  • Visit the Reports menu and click on the accountant and taxes option in QuickBooks online.
  • Click on the Income Tax Summary button in your QuickBooks account.
  • Set the date to generate an expense or gross sales report in the date section.
  • Click on the Enter key.
  • After that, a list of amounts will shown in the section of gross receipts or gross sales.

Step 3: Execute Gross Sales Report

After creating a gross sales report in your QuickBooks Online account, you can execute this report in several steps. These are as follows:

  • Open your QuickBooks account and click on the Reports menu.
  • Type Profit and Loss in the search field bar.
  • Click on the customization button and select the date for generating reports.
  • Click on the Filter button and choose distribution amounts. After selecting this option, click on income amounts.
  • Click on the run report button in QuickBooks Online.

Note: You can also set up sales tax in QuickBooks Online.

How to Calculate Gross Receipt in QuickBooks?

It is important to keep a few things in mind before calculating gross receipts in QuickBooks Online. There are several steps that you can calculate gross receipts, which include the following:

  • Decide a period for measuring the amount of gross receipts.
  • Create a financial measure for that particular period.
  • Take a general period for the measurement of business activity.
  • Check the function of a business under a cash or accrual accounting system. An income is identified by the accrual accounting system whether a particular product or service is delivered to a customer. A sale is recorded from the cash accounting system when the cash is received from the customer. Even though an accrual accounting system is favored by many companies, certain small businesses function under a cash system.
  • All the invoices and receipts of sold products and services can be collected for a specific period. This offers amounts that are required for the evaluation of gross sales.
  • All the relevant sums from the rendered services or sold products can be combined for the evaluation of gross receipts in business.

Conclusion

This blog explains the steps to calculate gross sales and gross receipts in QuickBooks Online. It is a very simple and easy process in this accounting software. The calculation of gross sales is most important for calculating net sales and other accounting ratios. Informed decisions related to the financial health of the business can be made by tracking the information on gross sales regularly.

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