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arkvalleyinfo
January 2, 2019
Question

Why doesn't my income $$ on the profit and loss window match my gross sales $$ amount in the taxes window ?

  • January 2, 2019
  • 3 replies
  • 0 views
Original commenter did not share additional details

3 replies

BettyJaneB
BettyJaneB
January 2, 2019

Hi there, @arkvalleyinfo.

 

Welcome to the Community. I'm here to share some insights on why your income on your Profit & Loss doesn't match with your gross sales. 

 

The total sales and total income will not always match because there are transactions that can appear in a data file that will make it unlikely for the Sales Tax Liability and Profit and Loss reports to match. You can compare the two reports to see which transactions are causing the discrepancies.

 

To fix the problem, compare the details of the totals by running the Sales Tax Liability report and the Profit & Loss report.

 

To do that:

  1. Click on Reports at the left pane.
  2. Select on Sales Tax Liability Report.
  3. Choose the correct report basis.
  4. Select the Date Range.
  5. Click on Run Report.
  6. Double-click the Tax amount to see the details of the transaction.

Once done, run the Profit & Loss report and do the same process. If the issue persists, I'd suggest giving our Customer Care Team a call. They have necessary tools such as screen sharing that will help you figure this out. 

 

To reach them:

  1. In your browser, navigate to https://help.quickbooks.intuit.com/en_US/contact.
  2. Choose QuickBooks Online.
  3. Select the issue or topic.
  4. Click the Green Phone button to see the support number.

This should get you on the right track. Please let me know if you have any other questions. I'd be happy to lend a hand.

Sweetlymade
March 13, 2022

I have my square synced to my QuickBooks. All the payments filter through that, is that a reason for my profit And loss and sales tax to be off?? My reports are not the same, as far as gross totals. Not sure what’s happening! Do these directions Apple to my situation? 

JamaicaA
March 13, 2022

I can only imagine the hurdle you've been through with your profit and loss report and sales tax concern, @Sweetlymade. I'll be here to help you resolve this calculation issue.


To address your sales tax concern, you can add up all of the sales that should have been subject to sales tax. After that, let’s do the math to figure out how much sales tax is due. Please take note that you’ll need to add your sales tax rate as a decimal to one.


Here’s a sample computation:


If your sales tax rate is 8.25%, that is .0825 plus one is 1.0825. Next, divide the amount of the sale by that amount and multiply it to 100 (i.e., $100/1.0825 x 100 = $92.16). Then, take the sale amount and subtract the answer to get the amount of sales tax included (100-92.16 = 7.84).


Once done, you’ll have to create a Sales Tax Due account in your journal. From there, you can move the amount from income to a liability by debiting the income and crediting the sales tax due.


When you pay sales tax, use the sales tax adjustment. You can set the adjusting account to the sales tax due liability account and enter the amount as an increase. Then, pay the total sales tax due.

 

I'm adding this guide to help you manage sales tax payments in QuickBooks Online. It includes the troubleshooting steps you can perform if you encounter sales tax payment issues. 


I’m always here to back you up if you need further help on managing you profit and loss report, including your sales tax, or any QuickBooks-related in general. Just leave a reply to this thread and I’ll get back to you.

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