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

bungy15's avatar
bungy15
Ultimate Cover User

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

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