I often see people using QuickBooks go down the wrong path when it comes to setting up their chart of accounts (after all, a chart of accounts is nerdy accountant stuff anyway!).
As they create their chart of accounts, one of their first thoughts is "well, I need to know what my sales by each customer are, so I need to create a separate sales account for them so I can see the results". Makes sense, right?
So, this means their chart of accounts may look something like this:
- Sales - Company A
- Sales - Company B
- Sales - Company C
- Sales - Company D
While this does provide a way to get a sales by customer report, it is not the preferred way to do it.
A BETTER WAY TO GET A SALES BY CUSTOMER REPORT IN QUICKBOOKS
In our example above, our chart of accounts would only have one account
We would not see a separate sales account for each customer.
To get our desired information, we would take advantage of the Sales by Customer Summary Report, found by clicking Reports > Sales > Sales By Customer Summary. This report instantly recaps your sales by customer based on invoices and sales receipts that have been created in QuickBooks. Even better, it allows your chart of accounts to be "lean and mean" and a LOT less confusing!
Here is a screen shot of the Sales by Customer Summary Report:
ADDED BONUS: You can then hover over any amount in this report and double-click the amount. You will immediately see the transactions that make up the summary value in the report. If I hover over Violette, Mike in the list above and double-click, here is the result:
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