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R
readpayrollservi
January 22, 2024
Question

Should the income tax report match the profit & loss report?

  • January 22, 2024
  • 1 reply
  • 0 views
Should the profit figures match? If not, which one do you use to ensure compliance?

1 reply

C
CharleneMaeF
January 23, 2024

Hi there, readpayroll. I'm here to provide some details about the two reports.

 

The figures in the Income Tax report and the Profit and Loss report in QuickBooks Online (QBO) may not necessarily match. 

The differences in these reports can arise from various factors, including tax adjustments, non-operating income or expenses, and other tax-specific considerations. 

 

If you have specific concerns about the figures not aligning between these reports, I recommend reviewing the transactions, accounts, and settings in QBO to ensure accuracy. 

 

Please note that both reports have a specific role in the program. The Income Tax report is specifically designed to provide information relevant to tax calculations and filings, while the Profit and Loss report focuses on the financial performance of the business. Depending on the compliance you're addressing, it would be advisable to generate these reports separately.

 

For more details about running reports and learning more about how income tax is calculated, please see these resources:

 

 

In addition, consulting with a tax professional or accountant can provide valuable insights into ensuring your record is accurate.

R
readpayrollserviAuthor
January 23, 2024

Thank you for your help.

 

I'm looking at which report to use for self assessment. I wouldn't want to report incorrect figures on the return... 

E
Erika_K
January 23, 2024

On behalf of my colleague, you are most welcome, read. I'm here to provide additional info. 

 

Here are the lists of the few reports needed for your Self Assessment tax return: 

 

  • Profit and Loss
  • Balance Sheet
  • VAT Liability Report
  • Payroll Liability Report (If you have payroll)

 

Also, I'll add these requirements for filing self-assessment tax returns. Some of the documents you will need include: 

 

  • Income statements
  • Receipts
  • Expenses
  • Invoices
  • Payslips
  • Bank statements
  • Rental income (for Landlords)
  • Transportation logs (if you have company vehicles)
  • Any other relevant financial records

 

You can visit this blog for more details: What do you need to complete a Self Assessment tax return? 

 

For future reference in personalizing your financial data, check out this article: Customise reports in QuickBooks Online. 

 

If you have follow-up questions about managing your tax returns, hit the Reply button. Keep safe always! 

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