Two line items on the Income Statment.

Hello, 0369. I'm here to help you and clarify your questions.

Thank you for reaching out to the Community. Let's answer your queries individually to ensure we take care of each of your questions. 

Yes, the revenue from sales that have not yet been deposited into the company's bank account is typically recorded on the income statement. This is because the income statement reflects the company's financial performance over a specific period, regardless of when the cash is actually received. On the other hand, the balance sheet shows the company's financial position at a particular time and reflects the accounts receivable related to these sales. Therefore, the revenue from these sales would be included in the total revenue on the income statement. 
 

On the other hand, employee payroll taxes that the company must pay but have not yet paid are typically recorded on the company's Balance Sheet as a liability until paid. This is because the company is obligated to remit these taxes to the appropriate tax authorities, representing a future cash outflow. Once the taxes are paid, the amount is reflected as an expense on the Income Statement. Therefore, once the taxes are actually paid, they are not recorded as an expense on the Income Statement but rather as a liability on the Balance Sheet. 

I'm adding a couple of helpful articles to bookmark as references when analyzing your financial records in QuickBooks:
 

• Run a Balance Sheet report in QuickBooks Online 
• Income statement report

Let me know if you need additional assistance or clarification on running financial reports in QuickBooks Online. I'm happy to provide further guidance or any other aspect of generating financial statements. Have a great day!

@0369 

With all due respect, ignore the response from @AileneA .  It is not accurate.

"1) Is revenue from sales that are not yet deposited into the company's bank account recorded on the company's Income Statement?"

There is no simple yes or no answer to that question.  The answer depends on whether you use cash or accrual basis accounting.  If you are on accrual basis, income is recorded as soon as the invoice is issued - regardless of when payment is received.  If you are on cash basis, income is recorded when you receive payment on the invoice.  This is different than your question of whether income is recorded when it is deposited into the company's bank account.  On cash basis, income is recorded when you receive the payment, not when you deposit it, if those two events happen at a different time.  If you use undeposited funds (UF) in QB, then income is recorded when payment is put into UF, not when it is physically deposited at the bank.  

"2) For employee payroll taxes that the company must pay (not the employee portion withheld from pay), if this amount hasn't been paid yet (due to when it falls to pay it) is it recorded on the Income Statement?"

Yes.  Because this is double-entry accounting, if there is a liability on your balance sheet for employer payroll taxes, then there is an offsetting expense recorded on your income statement.