Forum Discussion

Experienced User

6 years ago

Profit and loss statements

Hello MYOB community I printed my profit and loss statement for the year and it showed a profit of $61K yet when I printed the profit and loss (cash) it had a different number in the overall sales, and all the other figues did not match and I had a profit of $21K All the items in the expenses section were the same it was only the area of Income and cost of sales that was different. All the items are entered the same way and we do not deal in "cash" at all. In the "cash" version there was an area called "raw material expenses" and this is not in the profit and loss report at all. Similarly in the profit and loss statement it had purchases at $16K yet in the profit and loss (cash) it was only $4k If anyone can explain the differences I would appreciate it. Thanks Mark

bungy15
6 years ago
Hi Mark299

The P&L report is an accrual report while the P&L (cash) is a cash report so they will always be different. The accrual report includes unpaid customer and supplier invoices. For example - in the accrual report you have purchases of $16K, so you have entered supplier invoices to the value of $16K, but you have only paid $4K worth of invoices which is your P&L (cash) amount.

Hope this clarifies it for you
Tracey

bungy15
Ultimate Cover User
6 years ago
Hi Mark299

The P&L report is an accrual report while the P&L (cash) is a cash report so they will always be different. The accrual report includes unpaid customer and supplier invoices. For example - in the accrual report you have purchases of $16K, so you have entered supplier invoices to the value of $16K, but you have only paid $4K worth of invoices which is your P&L (cash) amount.

Hope this clarifies it for you
Tracey
- DuncanS
  Ultimate Partner
  6 years ago
  Mark299 bungy15
  
  Mark,
  
  Bungy15 gave a good explanation.
  
  A Sole Trader can do a Tax Return on a cash basis.
  My understanding is that a Company which records Receivables/Payables in MYOB cannot prepare a Tax Return on a cash basis - an exception applies to Companies that were in the STS system.
  
  It is good that you are questioning the difference between the Non-Cash/Accural P&L and Cash P&L.
  One aspect of running a business is to look at your Receivables and Payables on say a weekly basis after reconciling your Bank Account/ allocating all Bank Feeds.
  .
  You should determine from your Tax Agent whether the Non-Cash or Cash Basis is used to prepare your Tax Return. You could compare your Tax Return to the Non-Cash or Cash P&L in MYOB.
  
  Duncan
  - Mark299
    Experienced User
    6 years ago
    Thanks Duncan
    
    Much apreciated
    
    Mark