Hi. I have compiled a set of transactions for a small entity. When I pull a TB, it differs to the SPLOCI (same period) any advice? Thanks in advance.

Let’s take a closer look at a few potential reasons for the difference between the Trial Balance (TB) and your Statement of Profit or Loss and Other Comprehensive Income (SPLOCI), @AnkoraFS.

A TB shows the closing balance of each account during a specific period, ensuring that debit and credit balances are perfectly balanced, while the SPLOCI only provides revenue and expense accounts over a specific period.

Additionally, since you're reviewing both reports for the same period, let's consider some factors why both reports differ:

• Depending on your accounting method (cash vs. accrual accounting) if cash-based, revenues and expenses are recorded when cash is received or paid, which may not align with when they are recognized in the SPLOCI. In contrast, under the accrual method, revenues and expenses are recorded when earned or incurred, which can lead to differences if transactions are recorded in different periods.
• Any manual journal entries or adjustments made to accounts can affect the TB without impacting the SPLOCI, especially if they're not related to income or expenses.

If the issue persists and you cannot identify the cause, consider consulting with an accountant or an accounting expert for a detailed review.

Stay on top of your finances with ease, and learn how to set a schedule and email information for a memorised report in QBO, so you can receive timely financial insights and make informed business decisions.

Now that you know the differences between TB and SPLOCI reports, you'll be better equipped to catch any errors and keep your financial records in shape. If you still have questions, don't hesitate to reach out. We're here to help you stay on top of your finances.