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Anonymous
April 5, 2019
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If the bank account hasnt been reconciled, Will my "Cash Basis" profit and loss include those figures?

  • April 5, 2019
  • 1 reply
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Best answer by john-pero

You are right, QBO can act quite differently and even on its own double enter transactions as can be seen in some recent questions. But once a transaction is actually "in" your books as opposed to bank feeds which are pending and For Review, then if it is income or expense it will be in P&L.

 

What will not be in Cash Basis P&L will be invoices and bills which have yet to be paid. Since they are not paid there is no banking activity, but they would appear in Accrual Basis P&L - that is the biggest difference between accrual and cash.

 

Underneath every version of QBO and QB Desktop , quickbooks is in fact accrual based accounting - it is the choice you make of how the data is reported to you that makes the difference.

1 reply

john-pero
john-pero
April 5, 2019

Why wouldn't it? Reconciliation is nothing more than balancing the chequebook.

 

 If you entered income and expenses in QuickBooks it will be in your P&L in both Cash and Accrual.  Reconciliation has nothing to do with P&L - other than finding missing entries. 

A
Anonymous
April 5, 2019

"Why wouldn't it, you ask "?  Under most accounting packages it would.  However, QBO is very different and as I have found so many mishaps and convolutions and double and triple ups from bank downloads that I thought I would pose the question.  Thank you for your reply.    

 

john-pero
john-peroAnswer
April 5, 2019

You are right, QBO can act quite differently and even on its own double enter transactions as can be seen in some recent questions. But once a transaction is actually "in" your books as opposed to bank feeds which are pending and For Review, then if it is income or expense it will be in P&L.

 

What will not be in Cash Basis P&L will be invoices and bills which have yet to be paid. Since they are not paid there is no banking activity, but they would appear in Accrual Basis P&L - that is the biggest difference between accrual and cash.

 

Underneath every version of QBO and QB Desktop , quickbooks is in fact accrual based accounting - it is the choice you make of how the data is reported to you that makes the difference.

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