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Level 2

Balance Sheet and Income Statement Net Income Totals

I am probably missing something simple, and I appreciate you telling me what it is.

 

The net income amount on the balance sheet and the income statement match for the first month. However, every individual month after that does not match. They DO MATCH if I always include ALL previous months, including that very first month. I have found that my "owner equity" account total carried over into the second month of business, while adding on whatever new amount I added to it the second month. Therefore, the second month is off exactly by the difference in equity from month 1 to month 2. The following months are off by different amounts. 

 

Additional information: Currently, my balance sheet and income statement for the month of January 2019 have a matching net income when viewed without the pervious months. This month can stand alone and be correct. 

 

What does this mean? Did I enter something wrong; why do my BS and IS net totals only match when I view all months? Why is my second month off exactly by the amount of equity I put into my business during the first month? 

Solved
Best answer 01-16-2019

Best Answers
Anonymous
Not applicable

Re: Balance Sheet and Income Statement Net Income Totals

Hello there, @hpitts.

 

Yes, you're correct. The balance sheet's total will differ from the net income statement if you generate it by month. That's why to ensure your accounts are balanced, you'll need to compare it to your income statement by excluding the beginning balance.

 

I appreciate you telling me about your experience when talking to one of our phone support. This isn't the kind of service we want you to experience. We want to do our best to make sure that you're taken care of, and I'm happy to take your feedback here.

 

That said, if there's something you need help with or if you have other questions, I'd like to see what I can do. Have a good one.

 

 

View solution in original post

11 Comments
Level 7

Re: Balance Sheet and Income Statement Net Income Totals

Are you on a Cash or Accrual system and are the reports you're creating set to show the correct way?

 

All Income and Expenses are fully entered, and in the correct months?

Level 2

Re: Balance Sheet and Income Statement Net Income Totals

I am on an accrual basis, although I viewed the reports through cash too as I looked for the error. I believe I the reports are set the correct way -same dates, periods, and all other functions match on each report. 

 

All the expenses are entered, yes. I have been doubling back through to make sure they are accounted for in the correct months, and currently nothing appears wrong. I have even pulled the general ledger to compare both reports too.  

QuickBooks Team

Re: Balance Sheet and Income Statement Net Income Totals

Hi there, @hpitts.

 

Thanks for reaching back out to us. I appreciate your efforts in trying to get this issue sorted out. I want to make sure you'll get the best help possible.

 

Since you've already verified that the dates are correct and the issue still persists, I'd suggest reaching out to our Customer Care Team. They have the proper tools like screen-sharing to check on your transactions and verify on what's causing the issue. This is also to ensure that your account is in a secure space since the Community is a public place. 

 

You can reach them through the contact details found below:

  1. Visit this link: QuickBooks Online Support.
  2. Select answers for the two prompts.
  3. Click Get Phone Number.

You've got me here if there's anything else you need. I'll be around to help you out. Have a good one!

Level 15

Re: Balance Sheet and Income Statement Net Income Totals


@hpitts wrote:

I am probably missing something simple, and I appreciate you telling me what it is.

 

The net income amount on the balance sheet and the income statement match for the first month. However, every individual month after that does not match. They DO MATCH if I always include ALL previous months, including that very first month. I have found that my "owner equity" account total carried over into the second month of business, while adding on whatever new amount I added to it the second month. Therefore, the second month is off exactly by the difference in equity from month 1 to month 2. The following months are off by different amounts. 

 

You do not transfer net income each month to equity.
At the end of the year, actually on the first of the new year, net income for the last year will post to retained earnings (unless you are  a sole proprietor then it moves to equity)
that is when you move retained earnings to equity


 

Level 2

Re: Balance Sheet and Income Statement Net Income Totals

I have never transferred net income to equity. 

Level 2

Re: Balance Sheet and Income Statement Net Income Totals

I actually have spoken to the customer care team. I don't think the person who helped me knew enough about accounting in order to help more than referring me to articles I had already read... I may try again today for a more knowledgeable representative. Thank you, @BettyJaneB.

Anonymous
Not applicable

Re: Balance Sheet and Income Statement Net Income Totals

Hello, @hpitts.

 

Allow me to join the conversation and help share some information about your balance sheet and income statement.

 

In QuickBooks Online, the beginning balance will always show even if you selected a specific period, thus it will include the previous period. 

 

At this time, there's no option yet to remove the beginning balance in the balance sheet. To match another report that indicates the specific period, you'll need to drill down on the accounts in balance and remove the beginning balance manually through excel.  

 

Keep me updated how it goes. If you've already tried calling one of our representatives, please let me know how the call went. I'll be here to help further if you have other questions about your balance sheet totals. 

 

 

 

Level 2

Re: Balance Sheet and Income Statement Net Income Totals

Thanks @Anonymous. I want to make sure I am understanding you correctly. Are you saying that my balance sheet net income will never match my income statement net income because the balance sheet total "rolls over" each month? (This "roll over" is exactly how much I am off from month to month.) OR?

 

Unfortunately, I was on the phone for an hour and ten minutes only to get hung up on before resolving anything. 

Anonymous
Not applicable

Re: Balance Sheet and Income Statement Net Income Totals

Hello there, @hpitts.

 

Yes, you're correct. The balance sheet's total will differ from the net income statement if you generate it by month. That's why to ensure your accounts are balanced, you'll need to compare it to your income statement by excluding the beginning balance.

 

I appreciate you telling me about your experience when talking to one of our phone support. This isn't the kind of service we want you to experience. We want to do our best to make sure that you're taken care of, and I'm happy to take your feedback here.

 

That said, if there's something you need help with or if you have other questions, I'd like to see what I can do. Have a good one.

 

 

View solution in original post

Level 1

Re: Balance Sheet and Income Statement Net Income Totals

Did this ever get resolved? I am having the exact issue and was on the phone for over an hour with support yesterday to no avail. 

QuickBooks Team

Re: Balance Sheet and Income Statement Net Income Totals

Hello, jgrover.

 

I'd like to refer you to Rustler's example as to why these accounts won't match. Then, consult with your accountant to review the missing transactions that cause the discrepancy.

 

For any additional questions or concerns, please leave a comment on this thread. Thanks.

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