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Liz_A's avatar
Liz_A
Valued User
5 months ago
Solved

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 Equ...
  • gavin12345's avatar
    gavin12345
    5 months ago

    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

gavin12345's avatar
gavin12345
Ultimate User

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

Liz_A's avatar
Liz_A
Valued User
5 months ago

Hi gavin12345 

 

Thanks - I have never done it this way before as the accountant usually only does the cash reporting for tax returns, so never looked at the reports in this format. I exported to Excel and adjusted for this one so I'll do this next time if it's needed again.

 

Cheers

Liz