Profit and Loss statements

Joey2

Hi,

Could you please help me. 

I've categorised my incomes for easy tracking. However one of the incomes is in negative eventhough I have issued invoices. Please see attached FYI.

Can anyone help with what it could be?  Really at a loss

Thank you in advance.

Regards

Joey

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Emily_B

Hello @Joey2 

 

I am not an expert on this topic but there are a couple of things I have found which may assist you.

 

If the account showing negative figures is a Detail Account, I would suggest running the General Ledger Detail report for that particular account using the same date range as the Profit and Loss. This will show you the individual transactions that make up the balance, as well a their effect on the account balance and may help you narrow down where the negatives are coming from. 

 

I do wonder if the invoices you have issued against that account are affecting the figures - if the invoices haven't had payments recorded on them, the software may be factoring those figures in as a 'loss,' as such. Are you running the report on cash or accrual basis?  (Check this under 'Report Options.') The cash option will only report expenses actually paid and income actually received.  Accrual reporting will include all cash income and expenses received and also any invoices or bills received and entered but yet to be paid.

 

Additionally, note that AccountRight will report Income, Expense and Cost of Sales on the Profit and Loss accounts. If there is a value being recorded in the PL that is not intended to be, you will need to record the transaction going to a Balance Sheet account (Asset, Liability or Equity account) instead. An accountant would be able to assist with selecting the best account f or your needs.

 

I'll link a couple of other posts in which some PL issues are explained: this one & this one. do hope some of this information helps, although another Community Member may be able to assist with more specific advice.