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Anonymous
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If the bank account hasnt been reconciled, Will my "Cash Basis" profit and loss include those figures?

 
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Best answer April 06, 2019

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john-pero
Community Champion

If the bank account hasnt been reconciled, Will my "Cash Basis" profit and loss include those figures?

You are right, QBO can act quite differently and even on its own double enter transactions as can be seen in some recent questions. But once a transaction is actually "in" your books as opposed to bank feeds which are pending and For Review, then if it is income or expense it will be in P&L.

 

What will not be in Cash Basis P&L will be invoices and bills which have yet to be paid. Since they are not paid there is no banking activity, but they would appear in Accrual Basis P&L - that is the biggest difference between accrual and cash.

 

Underneath every version of QBO and QB Desktop , quickbooks is in fact accrual based accounting - it is the choice you make of how the data is reported to you that makes the difference.

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john-pero
Community Champion

If the bank account hasnt been reconciled, Will my "Cash Basis" profit and loss include those figures?

Why wouldn't it? Reconciliation is nothing more than balancing the chequebook.

 

 If you entered income and expenses in QuickBooks it will be in your P&L in both Cash and Accrual.  Reconciliation has nothing to do with P&L - other than finding missing entries. 

Anonymous
Not applicable

If the bank account hasnt been reconciled, Will my "Cash Basis" profit and loss include those figures?

"Why wouldn't it, you ask "?  Under most accounting packages it would.  However, QBO is very different and as I have found so many mishaps and convolutions and double and triple ups from bank downloads that I thought I would pose the question.  Thank you for your reply.    

 

john-pero
Community Champion

If the bank account hasnt been reconciled, Will my "Cash Basis" profit and loss include those figures?

You are right, QBO can act quite differently and even on its own double enter transactions as can be seen in some recent questions. But once a transaction is actually "in" your books as opposed to bank feeds which are pending and For Review, then if it is income or expense it will be in P&L.

 

What will not be in Cash Basis P&L will be invoices and bills which have yet to be paid. Since they are not paid there is no banking activity, but they would appear in Accrual Basis P&L - that is the biggest difference between accrual and cash.

 

Underneath every version of QBO and QB Desktop , quickbooks is in fact accrual based accounting - it is the choice you make of how the data is reported to you that makes the difference.

View solution in original post