12 Feb Do I Qualify for more Government Funding? Running Comparative Reports in QBO to Find Out
Many of the new Federal Stimulus Packages require you to show proof of a loss of revenue in 2020 in comparison to revenue in 2019. Instead of pulling out bank statements and calculating lost revenue on messy spreadsheets, you can run these comparable statements easily in your Quickbooks Online accounting file. Your QuickBooks Online file has every capacity to make this reporting as easy as click 1-2-3 to see if you meet qualifications. In this example, we will walk you through the preparation of a Profit and Loss Comparison for the second quarter of 2019 and 2020. This is the quarter that most small businesses need to use in order to qualify for the federal stimulus. Here’s how to do it:
Step 1: Log into QuickBooks Online. On the left side of your screen, select the “Reports” button.
Step 2: You’ll see a list of Report Options. Select Profit and Loss Comparison
Step 3: Add customizations
- At this point, you will customize the date range. We recommend entering 04/01/20 – 06/30/20 (the second quarter). This is the most common date range where small businesses will qualify for reduced revenue under the CARES Act. However, you can use whatever date range is appropriate for your situation.
- Under the “Compare to Another Period” tab, be sure to check boxes for Previous Year (PY), $ Change, and % Change. It is very important to select the drop down menu and check these boxes. This allows the report to show you both dollar and percentage change when comparing the second quarter of 2019 to the second quarter of 2020.
- Uncheck the box labeled Year-To-Date (YTD)
Step 4: Run the report.
Here is an example report, where we can now successfully view a comparison of Quarter 2 2020 to Quarter 2 of 2019. We can see for this company, Craig’s Design and Landscaping Services, that their Total Income was down 44.43% in Quarter 2 of 2020. They would definitely qualify for funding for the Round 2 PPP loans!
| Craig’s Design and Landscaping Services | ||||
| Profit and Loss Comparison | ||||
| April – June, 2020 | ||||
| Total | ||||
| Apr – Jun, 2020 | Apr – Jun, 2019 (PY) | Change | % Change | |
| Income | ||||
| Design income | 15,170.72 | 30,220.20 | -15,049.48 | -49.80% |
| Landscaping Services | 20,444.00 | -20,444.00 | -100.00% | |
| Job Materials | 6,169.00 | 34,940.68 | -28,771.68 | -82.34% |
| Fountains and Garden Lighting | 6,999.00 | 17,778.73 | -10,779.73 | -60.63% |
| Plants and Soil | 55,457.92 | 59,743.21 | -4,285.29 | -7.17% |
| Total Job Materials | 5,080.00 | 5,080.00 | ||
| Labor | 983.72 | 13,694.40 | -12,710.68 | -92.82% |
| Maintenance and Repair | 1,089.49 | 1,089.49 | ||
| Total Labor | 1,738.71 | 1,669.50 | 69.21 | 4.15% |
| Total Landscaping Services | 913.68 | -913.68 | -100.00% | |
| Pest Control Services | 7,011.03 | 7,011.03 | ||
| Total Income | $ 99,699.59 | $ 179,404.40 | -$ 79,704.81 | -44.43% |
| Cost of Goods Sold | ||||
| QuickBooks Payments Fees | 118.71 | 286.88 | -168.17 | -58.62% |
| Materials | 1,266.15 | 2,508.70 | -1,242.55 | -49.53% |
| Subcontractors | 2,291.63 | 2,538.47 | -246.84 | -9.72% |
| Total Cost of Goods Sold | $ 3,676.49 | $ 5,334.05 | -$ 1,657.56 | -31.08% |
| Gross Profit | $ 96,023.10 | $ 174,070.35 | -$ 78,047.25 | -44.84% |
| Expenses | ||||
| Automobile | ||||
| Fuel | 128.20 | 1,500.45 | -1,372.25 | -91.46% |
| Total Automobile | $ 128.20 | $ 1,500.45 | -$ 1,372.25 | -91.46% |
| Office/General Administrative Expenses | ||||
| Advertising & Marketing | 3,024.67 | 9,192.55 | -6,167.88 | -67.10% |
| Dues & subscriptions | 145.00 | 145.00 | ||
| Bank and Credit Card Fees | ||||
| Insurance Expense | 125.00 | 125.00 | ||
| Total Office/General Administrative Expenses | $ 3,294.67 | $ 9,192.55 | -$ 5,897.88 | -64.16% |
| Legal & Professional Fees | ||||
| Accounting | 1,280.34 | 1,264.84 | 15.50 | 1.23% |
| Bookkeeper | 1,005.97 | 2,911.50 | -1,905.53 | -65.45% |
| Lawyer | 5,226.57 | 3,534.89 | 2,315.07 | 47.86% |
| Total Legal & Professional Fees | $ 7,512.88 | $ 7,711.23 | -$ 198.35 | -2.57% |
| Total Expenses | 10,935.75 | 18,404.23 | -7,468.48 | -40.58% |
| Net Operating Income | 85,087.35 | 155,666.12 | -70,578.77 | -45.34% |
| Other Expenses | 55,410.00 | 38,289.00 | 17,121.00 | 44.72% |
| Total Other Expenses | $ 55,410.00 | $ 38,289.00 | $ 17,121.00 | 44.72% |
| PPP Loan Forgiveness Income | $ 28,602.00 | $ 0.00 | $ 28,602.00 | |
| Net Income | $ 58,279.35 | $ 117,377.12 | -$ 59,097.77 | -50.35% |
