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dkch
March 9, 2024
Question

Expenses not aligning with bank account and P&L statement.

  • March 9, 2024
  • 1 reply
  • 0 views

All QBO Expenses total $30,196.72 for 10/1/23-3/9/24

P&L report shows expenses of $26,513.77 for 10/1/23-3/9/24

Real expenses should be $27,692.75 for 10/1/23-3/9/24

 

I'm unsure of why the discrepancies are appearing as all of the transactions are marked in QBO, bank balances are up to date and all of the transactions match entries in QBO, and the only revenue is $0.15 from interest and $5.00 from QBO sample customer, so finding the real expenses based on the bank balances isn't difficult.

 

Any insight would be helpful.

1 reply

C
CamelleT
March 9, 2024

Let me explain further about discrepancies between your bank account and your P&L statement, dkch.

 

The P&L statement and your bank account aren't always supposed to match. It will depend on the cash flow in and out.

 

You can reconcile your account to ensure your books are accurate. Here's how:

 

  1. Review the opening balance if you're reconciling an account the first time. It needs to match the balance of your real-life bank account for the day you decided to start tracking transactions in QuickBooks.
  2.  If your accounts are connected to online banking, ensure you match and categorize all of your downloaded transactions.
  3. Go to Settings and then Reconcile. If you're reconciling for the very first time, click Get started.
  4. From the Account dropdown, choose the account you want to reconcile. Make sure it's the same one on your statement.
  5. Review the Beginning balance. Make sure the beginning balance in QuickBooks matches the one on your statement. Here's what to do if they don't match.
  6. Enter the Ending balance and Ending date on your statement. Some banks call the ending balance a "new balance" or a "closing balance."
  7. If you see it, review the Last statement ending date. It's the end date of your last reconciliation. Your current bank statement should start the day after.
  8. When you're ready to start, hit Start reconciling.

 

For further details about reconciling, refer to this link: Reconcile an account in QuickBooks Online.

 

Moreover, you can learn the reconciliation workflow in QuickBooks to guide you in fixing a reconciliation or editing completed ones.

 

Tap reply if you need a hand managing your expenses or reconciling an account. I'll be around. Have a great day!

D
dkchAuthor
March 9, 2024

The accounts have been reconciled, and there are no outstanding transactions in this case that would indicate that the accounts and the current P&L statement shouldn’t match. With everything settled in QBO and the accounts, they should match.

 

I also don’t quite understand why the sum of all expenses is different from both of the other numbers.

JoesemM
JoesemM
March 9, 2024

I appreciate the prompt response, dkch. Let me elaborate the information on why your expenses are not aligning with your bank account and P&L statement.

 

It appears that your book is in good condition since the accounts have already been reconciled. However, if you have expenses that were paid through a credit card, they may not be reflected in the Profit and Loss report as they are considered liabilities. This is also why the total sum of expenses may differ from the other numbers.

 

Moreover, I'll leave these useful guides that you can visit and read if you want to learn about memorizing reports and fixing issues if the bank statement doesn't match at the end of a reconciliation: 

 

 

If you need further assistance with your report or expense tracking in QBO, feel free to let me know by leaving a comment below or posting again. I'm always happy to help you out. 

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