Forum Discussion

Mark299's avatar
Mark299
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, an...
  • bungy15's avatar
    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

DuncanS's avatar
DuncanS
Ultimate Partner

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's avatar
Mark299
Experienced User
6 years ago

Thanks Duncan

 

Much apreciated

 

Mark

Looking for something else?

Search the Community Forum for answers or find your topic and get the conversation started!

Community home

Dig into MYOB Academy for free courses, learning paths and live events to help build your business with MYOB.