Profit and loss statements

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Experienced User Mark299
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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, and all the other figues did not match and I had a profit of $21K All the items in the expenses section were the same it was only the area of Income and cost of sales that was different. All the items are entered the same way and we do not deal in "cash" at all. In the "cash" version there was an area called "raw material expenses" and this is not in the profit and loss report at all. Similarly in the profit and loss statement it had purchases at $16K yet in the profit and loss (cash) it was only $4k If anyone can explain the differences I would appreciate it. Thanks Mark
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Ultimate Cover User bungy15
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Re: Profit and loss statements

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

Ultimate Partner DuncanS
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Re: Profit and loss statements

@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

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
Experienced User Mark299
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Re: Profit and loss statements

Thanks Duncan

 

Much apreciated

 

Mark

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