MYOB Cash Profit & Loss not agreeing with Current Earnings in Balance Sheet
I have been working with Cash & Accrual reports for web based MYOB clients and the accountant I work with, noticed that the Cash report for Profit & Loss Net Profit figure does not agree with the Equity Current Earnings figure. It is ok when the reports are Accrual so are we missing something or is this a bug/corruption?
Regards
Liz
Hi Liz_A
I am not sure exactly how MYOB developers have done things here as I do not use P&L on cash basis in MYOB.
A Balance Sheet needs to balance. A Balance Sheet is normally on an accruals basis, and needs to show things like debtors and creditors (and liabilities - even unpaid liabilities).
Cash Basis is generally for Profit and Loss calculation only. The difference is timing. So the profit on a cash basis P&L will rarely match the current year earnings on a Balance Sheet. Some accountants provide a Reconciliation Statement for reconcile Profit on Cash Basis P&L to Current Year earnings figure on Balance Sheet.
So I don't think this is a bug, just something you need to be aware of when presenting/explaining financial statements to clients.
Regards
Gavin
