Profit and Loss Reports

Hello, @Kiah23.

Allow me to provide some more information about using cash versus accrual accounting methods. 

The Cash basis accounting method is used when you record income or expenses occurring at the time you receive a payment or pay a bill. The reports for this method only show income if you have received money and expenses when you've paid cash. 

You can use the Accrual basis accounting method when you enter a transaction, the time when you pay or receive cash may be two separate events. This means the reports show income regardless of whether your customers have paid their invoices and expenses regardless if you've paid your bills.

You can decide which method fits your accounting style the best and set your preference:

1. Login into QuickBooks as the Administrator in Single-User Mode.
2. Navigate to the Edit tab and choose Preferences.
3. Click Reports & Graphs, then go to the Company Preferences menu.
4. In the Summary Report Basis section, select Accrual or Cash.
5. Push OK.

You can find more information about the different accounting methods in this article: Differentiate Cash and Accrual basis.

I'm only a few clicks away should you have any other questions. Best wishes!

Deposits do not show up on your Profit and Loss statement.  Deposits are an increase to cash and a decrease to accounts receivable on the Balance Sheet.  On a P&L run on an accrual basis, your revenue increases by the amount of the deposit.