The QuickBooks Online Forecasting Tool | A Complete Guide

Last Updated on January 20, 2026

The QuickBooks Online forecasting tool is used by businesses to know and project future finances using historical data. This is used mainly in the QB Online Advanced version for the Profit & Loss (P&L) forecasting, and the interactive Cash Flow Planner in all the versions, which allows the QBO users to analyze trends, model what-if scenarios, and set budgets on projections. You also get the option to build forecasts from past averages or prior year’s actuals to guide financial decisions. We’ll cover the steps you need to know to create and manage a forecast in QuickBooks Online in this blog.

Are you facing issues with QuickBooks Online? Feel free to contact our Accounting Helpline’s experts today at 1.855.738.2784 to resolve your issue in no time!

What are Forecasts in QuickBooks Online – A Short Explanation

Forecasts can help you set short-term and long-term goals for your business. Forecasting is generally based on historical data and industry trends. Your historical data is analysed for patterns, and projections are made based on the available information. With all your financial data available in your company, you can quickly and easily create forecasts and use them to create budgets.

Guided Method to Use the QuickBooks Online Forecasting Tool

The steps to create a forecast, edit a forecast, convert a forecast to a budget, delete a forecast, export a forecast, and customize a report are given below:

Create a Forecast

You can create a forecast anytime you want; however, it is recommended to do so at the year’s end to start planning for the next year. To create a new forecast, you’ll need to sign in as an admin or as a Standard All user.

Step 1: Review the Financial Year for Your Business

1. Sign in to your company.
2. Navigate to Settings.
3. Click on Account and Settings.
4. Go to the Advanced tab.
5. In the Accounting section:
   • Review the First month of the financial year field.
   • If it’s incorrect, press the Edit option.
6. Choose the required month from the dropdown menu.
7. Hit Save.
8. Finally, click on Done.

Step 2: Get the Data for Your Forecast

You can skip this step if you already have your data entered. You can base your forecast on data from either the current financial year or the year before if you haven’t. If you wish to use historical data, you can run a Profit and Loss Detail report to ensure the transactions and accounts look correct. The report would automatically show the transactions created during the current year-to-date. You can customize the report to see the prior financial year’s transactions.

Step 3: Create Your Forecast

You can create a forecast using the QuickBooks Online Forecasting tool by using the past financial data from your company, with the steps given below:

1. Click on Create forecast.
2. Then, click on the Forecast for the dropdown menu.
3. Choose the timeframe you’re creating the forecast for.
4. Click on the Forecast using the dropdown menu.
5. Choose one of the following forecast methods:
   • Average of actuals 
   • Actuals from last FY (financial year):
     • You can modify the forecast duration and method until you first save from the Settings Panel.
   • Budgets
6. If you selected Average of actuals:
   • Choose the past actuals duration to be used to calculate the average from the Use actuals from dropdown menu.
7. If you want to set rules (increase/decrease) at the account type level:
   • You can add them in the Set rules section.
8. When you’re done, hit Next.
9. Click on the edit icon if you wish to edit the name of your forecast.
10. Press Save and close when you’re done.

This would create a forecast using the QB Online Forecasting tool.

Edit a Forecast

The steps to edit a forecast are given to you below:

1. Locate your forecast on the list.
2. Click on View/Edit in the Actions column.
3. Make the needed changes to your forecast.
4. Hit Save:
   • Or Save and close.

Convert a Forecast to a Budget

1. Locate your forecast on the list.
2. Click on View/Edit in the Actions column.
3. Click on Make this a budget.
4. Select the financial year of the budgeting period.
5. Click on Make this a budget again to save the forecast as a new budget.
6. Click on Create budget.
7. Make sure the Budget type is set.
8. Click on the Period dropdown menu.
9. Choose the financial year you’re creating the budget for.
10. Then, click on Budget format:
    • Consolidated: This would create a budget for your entire organisation, including all income and expenses.
    • Subdivided: This would create a budget for specific customers, locations, or classes. You can select what you want to subdivide by for subdivided budgets from the Subdivide by and Subdivide for dropdown menus.
11. You can optionally click on the Pre-fill data dropdown menu and choose a reference data value you want to prefill your budget with.
12. Hit Next.
13. You can take the following actions as needed:
    • You can customize a budget title by clicking the Edit icon next to the automatically generated title.
    • If you wish to add past actual or past budget data as the reference, you can turn on the Compare reference data switch and choose the type of reference data you wish to use.
    • Mark the checkbox next to Accounts to select all or individual rows if you wish to prefill your budget with the reference data. From the Batch actions dropdown menu, click on Copy reference data and press Got it.
    • You can remove the reference data by choosing the acquired rows and selecting Clear data from the Batch actions dropdown menu.
14. Enter the budget for each account for each month.
15. Hit Save:
    • Or press Save and close.

Delete a Forecast

1. Find your forecast on the list.
2. Click on View/Edit in the Actions column.
3. Press Delete.
4. Click on Delete to confirm.

Export a Forecast

1. Find your forecast on the list.
2. Click on View/Edit in the Actions column.
3. Then, select the Export icon.
4. Click on Export to Excel:
   • Or click on Print/Save as PDF.

Customize a Report

1. Find and choose the Profit and Loss Detail report.
2. Click on the Report period dropdown menu.
3. Choose a timeframe, for example:
   • Choose Last year if you wish to use data from the prior year.
   • Choose this year to date if you wish to use data from your current financial year:
     • Ensure that the beginning and end of the year match your financial year.
     • If you’re using the Classic View, the names of the fields may vary.
4. Select Run report (for Classic View only).

This would customize a report for your forecast.

QuickBooks Online Forecasting Tool – A Quick View Table

In the table below is given a concise summary of this blog on the topic of the Forecasting tool in QuickBooks Online:

Conclusion

The QuickBooks Online forecasting tool is used by businesses to forecast future financials using historical data. This is used primarily in the QB Online Advanced version for Profit & Loss (P&L) forecasting and in the interactive Cash Flow Planner across all versions, allowing QBO users to analyze trends, model what-if scenarios, and set budgets for projections. This can boost your workflow and have a positive impact on your business progress. We have covered the steps you need to know to create a forecast, edit a forecast, convert a forecast to a budget, delete a forecast, export a forecast, and customize a report in this blog.

If you are facing any issues creating a forecast in QB Online, contact our Accounting Helpline’s experts at 1.855.738.2784 today to resolve your issue in no time!

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Edward Martin

Edward Martin is a Technical Content Writer for our leading Accounting firm. He has over 10 years of experience in QuickBooks and Xero. He has also worked with Sage, FreshBooks, and many other software platforms. Edward’s passion for clarity, accuracy, and innovation is evident in his writing. He is well versed in how to simplify complex technical concepts and turn them into easy-to-understand content for our readers.