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Hello all,
I have a question,
I pulled a P & L Report and it shows a negative net ordinary income. Why does it show a negative? Does this mean I entered something incorrectly? How do I resolve this issue?
Thank you,
R
Let me share some insights, @ralva.
Net income is also referred to as the net profit and appears as the final item on your company’s income statement. It is also the amount of profit a business has left over after paying off all of its expenses.
If the net income becomes negative, meaning there is a possibility that expenses are higher than sales or there are Expense transactions (or perhaps Journal Entries) either crediting an expense account or debiting it for a negative value. Here's how you can verify this:
From there, you'll be able to identify what's feeding the amounts listed there and why it appears negative on your P&L report.
I'm adding an article to have additional reading about net income in QuickBooks: What is net income?.
Please don't hesitate to tag me here if you have any additional questions or concerns. I want to make sure that this will get resolved. Keep safe.
It means your expenses are more than your income. Based on the data entered in QB, you're losing money.
If you think this is wrong, you can double-click on each number that looks wrong to you on the P&L to see the details behind it. If you find things that are wrong, change them to be right and the report will update.
If the net income is negative does that mean I will be getting money back for taxes or does that mean I will have pay back on taxes?
If the net income is negative for that mean that you will be getting taxes back or does it mean you will have to pay back money for taxes?
Hello @Yasminreyesrosales14,
Thank you for posting here in the Community. I'm here to provide some information about what's causing the negative net income in QuickBooks Online.
A negative net income amount usually means a company has a loss and not a profit over a given period. While a company may have positive sales, its expenses and other costs will have surpassed the amount of money taken in as revenue.
Regarding the taxes, I recommend you drill down your tax-related transactions in the Profit and Loss report. This way, you can check if you get your money back or if you need to pay taxes.
You can also run a tax liability report to determine if you owe something or not. It contains detailed information you need regarding your business that involves taxes.
In QBO, you can personalize the reports based on the needed data. For more details about how to make changes to the filter, columns, and other information, check out this article: Customize reports in QuickBooks Online.
Please don't hesitate to let me know if you have more questions about the reports or taxes. We'll be sure to lend a hand here in the Community space.
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