Why there can be discrepancies between payroll reports and profit and loss Statements

Hi narellesales 

 

Thanks for your post. I'm happy to explain how those reports filter their data which should help with understanding why there would be a difference.

 

• Payroll reports filter by the payroll categories used when processing payroll
• Profit & Loss reports filter by accounts, so this will include all transactions posted to wage accounts not just pay transactions

For example, a Spend money transaction can be allocated to a wage expense account but won't be allocated to a payroll category.

 

Good luck with your assignment.

 

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