Quckbooks has a pleasing set of Accounts Types, matching those you would expect to be using in just about all Balance Sheet and Profit and Loss Reports.
However, my classically trained view of a Profit Loss account is this:
less Costs of Goods Sold
gives Gross Profit
gives Operating Profit
plus Other Income
less Other Expenses
gives Net Profit (Called Net Earnings in QB Online)
The key points to this arrangement are the ideas that a management accountant is interested in being able to notice and evaluate changes in income and expenditure in order to inform future business decisions. They do not want these decisions affected by unusual income and expenses that will obscure potential adjustments to the business' operations. These abnormal transactions are kept separate by putting them to accounts in the Other Income and Other Expense Account Types which are then used to adjust the Operating Profit to give the Net Profit for the period.
Quickbooks does not respect this arrangement. Instead it puts Other Income after Costs of Goods! and Other Expenses after Expenses!. Further the Total Income and Total Expenses are added or subtracted where they appear. Consequently, no Operating Profit figure can be produced. I do not understnd this logic.
I tried getting a halfway solution which would be a report which excludes Other Income and Other Expenses using the Filter customisation, however, despite their being bulk types to chose from, without clicking every Income, COGS and Expense account individually I was not able to achieve it.
I have looked and looked for a method of getting control over this behaviour, to no avail.
I am hoping you will be able to tell me that there is somewhere I failed to explore.
Hello there, @ATG_Accounts.
I've got some insights to share about rearranging the accounts that will show up on the Profit and Loss report in QuickBooks Online.
At this time, being able to arrange the Profit and Loss report according to your desired view isn't available. However, you may export the said report on Excel and manually customize them based on your trained sequence.
To do that:
From the Excel, you’ll need to select Enable Editing to view and edit the full report.
I know how helpful it would be to have this option available in the system. Know that our developers are always gathering and considering new features to be added so you can run your business easier.
That said, I encourage you to visit our QuickBooks Online Blog site regularly to be updated with our latest happenings.
For your reference, here are some great links that you can visit about the things that can be exported in QBO and on how to customize reports:
Know that you can always visit us here if there's anything else that you need. I'll be around to lend a helping hand. Have a great day!
To add further to Betty's post, if you do customise a report to your preferred specifications (or close to) in QuickBooks Online, you can save this customisation so you don't need to to redo this every time you run the report. Once you have finished customising, select Save customisation in the top right corner of the screen and give the report a name, then Save. In the future you can run this report straight away by selecting the Reports menu, then the Custom Reports tab.
I wish that this would solve my problem but the customisation I want is not available, so there isn't anything to save. I shall cross my fingers that the particular flexibility I seek becomes available soon. To be frank, it would be in Quickbooks interests, because as it is, it seems to suggest that its developers are not aware of the purpose of the Other Income and Other Expense account types. But then, maybe I don't understand.