profit and loss reportas
We work on a cash basis.
When we run the Profit and Loss (Cash) Report - some of the figures do not match the figures on Profit and Loss (With Last Year) and Profit and Loss statement reports?
Can you please explain why this is?
Which are the correct profit and loss reports to work from on a cash accounting system?
thank you for you help/
Kind Regards
Michele
Hi Kinda-Mindi
The Profit and Loss [Cash] report is a report run on a Cash basis whereas other Profit and Loss reports like the Profit and Loss [With last year] or Profit and Loss Statement would be an accrual-based report.In most cases, these reports will not likely match due to timing around dates and payments of transactions. For example, if an invoice is dated 15/08/2020 and the payment of that invoice was dated 01/09/2020, the Profit and Loss [Cash] report will show that value in September and not for August, whereas the Profit and Loss Statement will show it for August but not September.
