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Bella24
November 30, 2023
Question

2018 Quickbooks Desktop

  • November 30, 2023
  • 2 replies
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Net income on my Profit and Loss Report doesn't seem accurate. It shows I have an outlandish net income which I don't currently have in my bank account. Am I reading it correctly or has something been entered into my Quickbooks incorrectly? Is something carrying over from the previous year, if so.. How do I fix this?

2 replies

Rainflurry
Rainflurry
November 30, 2023

@Bella24 

 

It's important to know that there is no correlation between net income and your bank account.  You can have a high net income and little cash.  That's the exact scenario that motivated me to study accounting after opening my first business.  If you reinvest a lot of the net income or use it to pay back loans, you will still may show a healthy net income and have little cash in comparison.  Does your net income seem accurate knowing that?  What kind of business is this?  Retail?  Service?  On your P&L, you can click through the totals on each line (Gross Income, COGS, Expenses, etc.) to see if they make sense and, if not, where the issue is.

    BigRedConsulting
    BigRedConsulting
    December 1, 2023

    You can quickzoom (double-click) on any number on the P&L in order to open a detailed report to see what makes up the summary number.

     

    Nothing outside of the P&L date range at the top of the report will impact the numbers on the P&L.

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