How To Find Gross Sales in QuickBooks?

 

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QuickBooks is a very famous accounting software. But why is it so popular? It is because the application delivers more than it states. It provides a huge variety of features at a very affordable price. This is what makes QuickBooks so famous among businesses. What is the whole purpose of accounting and keeping a record of all finances? To know your income and expenses and to calculate your net profit. However, in order to calculate your net profit in QuickBooks, you need to know how to find gross sales in QuickBooks. Thankfully QuickBooks offers you to keep track of your earnings by calculating gross sales in QuickBooks.

In this article, we’ll learn how to find gross sales in QuickBooks and much more. Read ahead to know all about how to find gross sales on QuickBooks desktop.

What Do Gross Sales in QuickBooks Mean?

how to find gross sales in quickbooks

Gross sales help in calculating QuickBooks revenue report as it is a very crucial amount in order to figure out the revenue generated by sales. Ideally, gross sales in QuickBooks are used to find out the total income from sales that the company generated during trading. But why is knowing how to find gross sales in QuickBooks so important?

Look at it in this way, in order to calculate net profit all you need to do is subtract the cost of goods sold from the QuickBooks revenue report generated or with the help of QuickBooks general ledger. The income or QuickBooks revenue report can be generated only if you know in QuickBooks how to find gross sales per fiscal year.

Gross sales mean all the income before discounts, taxes, returns or allowances. However gross sales is not a reliable amount but it still tells us the revenue generated from sales that is useful for QuickBooks revenue report. Net sales reflect the true income and gross sales is just a way of calculating net sales. 

This means that gross sales in QuickBooks cannot be considered as the final revenue as it does not take into account the necessary subtractions like discounts and taxes etc. 

However, gross sales cannot be relied upon and can cause misleading conclusions as it does not reflect the true revenue. Having said that, usually businesses use net sales for calculating turnover, but the importance of learning in QuickBooks how to find gross sales per fiscal year is mentioned further.

Importance of Knowing How To Find Gross Sales In QuickBooks    

Importance of Knowing How To Find Gross Sales In QuickBooks    

There is always a good side to everything. However gross sales are not considered a reliable amount but it has its advantages. These are:

  • It helps you to learn about the total profit that the business warned from its sales.
  • Helps in calculating accounting ratios, and making QuickBooks balance sheet which further assists in making important business decisions.
  • Gross sales are used to calculate net sales which are used in QuickBooks revenue reports.
  • Depicts a lot about the growth of the business.
  • Gross sales in QuickBooks help analyze the discount policies of the firm.
  • It can also be used to know the number of products sold.

How To Find Gross Sales In QuickBooks?

Now you finally know what gross sales in QuickBooks are and its importance, let’s move further. Here we’ll learn in QuickBooks how to find gross sales per fiscal year. Follow these stepwise directions if you want to actually learn how to find gross sales in QuickBooks desktop.

Step 1: Add Gross Sales In QuickBooks

  • Open QuickBooks.
  • You’ll see a plus symbol. (+ menu)
  • Click on it and select create sales receipt option or create invoices.
  • Click on the customer to open the list of all customers.
  • Choose the correct customer from here. If you do not choose correctly you have merge a customer in QuickBooks so it can help you to choose a correct customer
  • In case of a fresh customer, tap on add new. Now follow the steps on the screen to add new customers.
  • Open the items drop-down menu and add the sold items.
  • Move over to the quantity section and enter the quantity of each item.
  • Further enter other additional charges, fees, or services that might be applicable in the items section.
Add gross sales in quickbooks
  • Adjust the prices accordingly under the amount tab.
  • Tap on save and close or save & new button, as per your choice.
  • Now repeat all these steps with all the sales made in your firm in order to record gross sales in QuickBooks.

Step 2: Create Gross Sales Report In QuickBooks

  • Navigate to the reports menu.
  • Go to the accountant & taxes options.
  • Click the income tax summary.
  • Go to the date range section and set it to the date you want to generate a expense report or gross sales report.
  • Finally, tap the enter key.
  • You’ll see an amount listed in the gross receipt or sales section. This amount is gross sales for the time period you set.

Step 3: Execute Report Of Gross Sales In QuickBooks

  • Open QuickBooks.
  • Go to the reports menu.
  • Navigate to the search field and type profit and loss.
  • Tp on customization.
  • Select the date you want to generate the report.
  • Now, go to the filter.
  • Select distribution amount > income accounts.
Select distribution amount > income accounts.
  • Finally, tap on run report.

Drawbacks Of Gross Sales

Knowing how to find gross sales in QuickBooks is good as it is useful in one way or another. However, there are certain drawbacks too.

  • It cannot be considered the final revenue amount as it does not include deductions.
  • Gross sales is not a reliable amount. Businesses mostly rely upon net sales.
  • Only consumer retail industry firms can actually use gross sales, others cannot.
  • It does not give you a complete picture. Mostly businesses leave out gross sales or balance equity in their income statement to avoid confusion.

Ending Point

Knowing how to find gross sales in QuickBooks is not rocket science. It is simple and very easy, as you would have seen in the above guide. You do not need any expertise in order to learn in QuickBooks how to find gross sales per fiscal year. All you have to do is follow the steps correctly and you’re all set to go. 

Gross sales are just all the income earned by sales before deductions like discounts or taxes. However, it is not to be relied upon because of the same reason. Most firms rely on net sales in their income statements. But, gross sales are required to calculate net sales and other accounting ratios.

Everything you need to know and learn about gross sales in QuickBooks and in general is already mentioned above. The guide is specifically simplified and properly researched in order to make this easy task easier for you. For other glitches, you can contact the support team.

Frequently Asked Questions 

Q.1: Why do I find what is gross annual sales in a company using QuickBooks?

A: Annual gross sales is the grand total, i.e. the final amount of all the sales made throughout the year without any deductions. It is important to find out gross sales using QuickBooks because:

  • Helps in figuring out net sales
  • Calculates other accounting ratios used for making big business decisions.
  • Helps to know the total revenue earned before deductions.
  • Helps to know the total sales made throughout the year and which item is sold most.

Q.2: Where to find total gross sales in QuickBooks?

  • Go to the reports menu.
  • Select the accountant & taxes.
  • Locate and move to the income tax summary.
  • Set the date range section to the time you wish to generate a gross sales report.
  • Finally, tap the enter key.
  • You’ll see an amount listed in the gross receipt or sales section. This amount is gross sales for the time period you set.

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