Forum Discussion

Mark299's avatar
Mark299
Experienced User
6 years ago
Solved

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

bungy15's avatar
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's avatar
    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's avatar
      Mark299
      Experienced User
      6 years ago

      Thanks Duncan

       

      Much apreciated

       

      Mark