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Profit and loss gross profit

why aren't these the same, and which should I report as my gross receipts on my taxes?   'received payments all customers' vs 'profit and loss gross profit'.  I am using cash basis for both, same time period. The received payments is larger and I can't figure out why, it's not sales tax. IT seems to me these numbers should match as they are both representing all income into the company.  What would cause these to total differently?


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Best answer 12-10-2018

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BRC
Established Community Backer ***

Use your financial statement (the Profit and Loss) for ta...

Use your financial statement (the Profit and Loss) for tax reporting.

Sales are related to income, but include things that aren't income (like sales tax) and there is income that is not sales (like interest income.)  Payments are even further from income than sales, as you can receive payments in the absence of a sale (in theory), for more or less than the sale, and for things that are not sales.

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OK for anyone else seeing this issue, this is what I did...

OK for anyone else seeing this issue, this is what I did and it fixed the discrepancies I was seeing:
<a rel="nofollow" target="_blank" href="http://www.accountingweb.com/practice/practice-excellence/is-your-item-setting-skewing-your-quickboo...>
BRC
Established Community Backer ***

Use your financial statement (the Profit and Loss) for ta...

Use your financial statement (the Profit and Loss) for tax reporting.

Sales are related to income, but include things that aren't income (like sales tax) and there is income that is not sales (like interest income.)  Payments are even further from income than sales, as you can receive payments in the absence of a sale (in theory), for more or less than the sale, and for things that are not sales.

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OK, thank you for that.  Back when my company was a lot s...

OK, thank you for that.  Back when my company was a lot smaller, I just totaled all the money paid to me and used that as my gross profit, but I guess that's why I use quickbooks now.  I am still a bit confused because I don't have any interest income or sales tax, but will use the P&L numbers!
Established Community Backer ***

"OK for anyone else seeing this issue" I think you are de...

"OK for anyone else seeing this issue"

I think you are describing that you realized the Items are "netting" in your accounts, and you are not seeing your true Gross Income separately from Gross Costs, as a result of not setting up the items to flow the data to meet your needs for that separation.

I have attached what it looks like to set up and use Two Sided items. I also attached how items link to accounts, and the Job Reporting you should see, to confirm that Expense and Income match across P&L (Account-based reporting) and Job Reporting.


Established Community Backer ***

" 'received payments all customers' vs 'profit and loss g...

" 'received payments all customers' vs 'profit and loss gross profit'.  I am using cash basis for both, same time period. The received payments is larger and I can't figure out why,"

There are a lot of possibilities to explain differences.

"Back when my company was a lot smaller, I just totaled all the money paid to me and used that as my gross profit,"

I think you mean, Income.

Do you use only invoices, or do you also use Sales Receipts? Receive Payments is only Invoice payments.

Do any of your Items that are charged to customer NOT link to income accounts?

Where do you find a report that is "Received Payments all Customer?" I don't even see that in the reports.

Do you sell Inventory? You will see Gross Income reduced by this as a Cost of Goods sold (direct expense) to see Gross Profit.

Taxes rely on Gross Income and you also report COGS, if you sell Products.




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Hi - correct I have no sales receipts, only invoices.  I...

Hi - correct I have no sales receipts, only invoices.  I will have to check if some of my items aren't linked to income accounts, you may be onto something there.  
That report (Received Payments all Customer) is in my customer center, under transactions, really useful report for me, along with the others in there!  I agree it's tucked away and should be listed under 'reports' as well.
I do not sell inventory, or have COGS, I am only labor, that's why I also do not have sales taxes.
Thanks for your input.
Established Community Backer ***

"That report (Received Payments all Customer) is in my cu...

"That report (Received Payments all Customer) is in my customer center, under transactions,"

That is not a Report, though. Reports are found on the Reports Menu.

You are describing a Print out of that List; that is Customer Center, selecting the Transactions Tab instead of By Names, for the perspective. Then, selecting a specific Transaction Type to print that as a Listing, or VIEW as a report.

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