P&L Report: CASH on desktop and ACCRUAL on online, they match. CASH for both: Desktop recognizes COGS when a sale is made. Online recognizes COGS when it is purchased.

I made a mistake in the original post. If I choose ACCRUAL for both, then they match perfectly.

CASH for both, they are off by $66k.

Hello there, @Devon.

I'm pleased to discuss the difference in your Profit and Loss report after migrating from QuickBooks Desktop (QBDT) to QuickBooks Online (QBO).

After migration, you can compare your Profit and Loss report to ensure complete data are copied. With this, you should note the following:

• Set the Report period to All Dates.
• Select Accrual as your accounting method.

Reports set on an accrual basis will match on both QBDT and QBO. However, you'll expect a difference for the cash basis report due to platform differences and migration limitations.

In addition, the cost of goods sold (COGS) should only be realized when a sale is made, not on purchases. You can review your Transaction Journal Report for your sales and expense transactions to verify.

Moreover, you'll have an equal amount for cash and accrual basis in QBDT if a constant level of sales and purchases is observed in your business. The timing differences between cash and accrual methods will eventually cancel out over time, with inventory levels remaining stable. Regardless of the accounting method, the recognized income and expenses will match.

Furthermore, to ensure everything is in a good state, you can review each transaction to see if there's a discrepancy. Once confirmed, rebuild the data file and restart the export process.

On the other hand, you might want to check these resources to learn more about how your books were moved from QBDT to QBO and to help you manage your company on your new software:

• Learn how features and data move from QuickBooks Desktop to QuickBooks Online
• Get started and adjust settings after you sign up for QuickBooks Online.

Feel free to leave a reply on this thread if you have additional questions when migrating your data, running reports, or other related concerns in QuickBooks Online. We can always lend a hand.

I see in the article you linked:

Accrual basis reports in QuickBooks Online will match your reports in QuickBooks Desktop. Cash basis reports may not match.

Could you please explain why the cash basis reports are different? Was desktop doing it wrong all along and now it's fixed?

I see in the article you linked:

Accrual basis reports in QuickBooks Online will match your reports in QuickBooks Desktop. Cash basis reports may not match.

Does this mean QuickBooks desktop was doing it incorrectly the entire time and now the online version fixed it?

Hello there, devon-dcmotorspa. I know how significant it is for you to match your Accrual basis reports from QuickBooks Desktop (QBDT) to QuickBooks Online (QBO).

When you switch from QBDT to QBO, you may notice differences in how it appears. I'll help you understand how these reports will be moved. 

Accrual basis reports in QBO should match your reports in QBDT as they both track income and expenses when they're earned or incurred regardless of when the money changes hands. However, cash basis reports may not match because they can only track income and expenses when the money is received or paid. Thus, this can lead to differences in reporting between the two systems, especially for businesses with significant accounts receivable or accounts payable.

In addition, you may check out this article in case you need more assistance with managing your reports: Learn how features and data move from QuickBooks Desktop to QuickBooks Online. 

Lastly, you can also browse through this article on how to import your QuickBooks Desktop company file into QuickBooks Online: Move your QuickBooks Desktop file to QuickBooks Online. 

Feel free to come back to us if you have other QBO-related reports. We're always here to assist you anytime. Stay safe.