The Balance Sheet report shows net income for current financial year and it should match the net income on the Profit & Loss report for current financial year. There are times though when the reports show different net income which may be due to any of the following reasons and can be resolved by the solutions recommended in this article.
- Balance Sheet summarises data at a specific point in time and Profit and Loss summarises data just for the selected period.
- The dates or bases of the reports do not match or the filters are set incorrectly.
- The Financial Year preference is not set properly.
- Possible data damage
Solution 1: Make sure the parameters are the same
Make sure both reports have the same Dates, Basis and Filters. The settings depend on your reason for running these reports.
Solution 2: Check the Financial Year
- From the Company menu, choose My Company.
- Select the Pencil icon.
- Under Report Information tab, make sure Financial Year is set correctly.
Solution 3: Run both reports for all dates
Open the Balance Sheet and Profit & Loss reports with the following settings:
- Dates = All
- Report Basis = Accrual or Cash
- Display columns by = Year
If there is still a discrepancy on the Net Income between the Balance Sheet and P & L reports, resolve data damage issues (basic troubleshooting).