Solved
Cash vs Accrual P&L Income account imbalance
Hello, I don't know if I selected the right location. I have run 2 P&Ls. Once Cash and one Accrual. The balance of the income account in Cash is higher than the Accrual income balance. I may be ...
Hi rbme , welcome to the forum. Have a look at the value of debtors in your balance sheet at the beginning and end of the period of the income report. If the ending value is less than the starting value, that would explain the difference.
To take a simple example, if a business had $100 owed to it at the beginning, and nothing owed to it at the end, and raised no sales invoices during the period. the cash report would show $100 of income (ie receipts) and the accrual report would show nothing.
