Forum Discussion

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
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

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
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
  Experienced User
  6 years ago
  Thanks Duncan
  
  Much apreciated
  
  Mark