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kb111
Level 3

Should expenses on report for Profit and Loss for a month equal the expenses on my bank register report for a given month?

I use QB desktop and have it set up as a cash basis accounting method for reporting.

Should expenses on my report for Profit and Loss for a month equal the expenses on my bank register report for a given month?  They never seem to equal the exact amount in any given month.  Is it likely that I am doing something wrong or it to be expected that they don't exactly equal each month...?

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Best answer April 06, 2020

Best Answers
BigRedConsulting
Community Champion

Should expenses on report for Profit and Loss for a month equal the expenses on my bank register report for a given month?

RE: Should expenses on my report for Profit and Loss for a month equal the expenses on my bank register report for a given month?

 

No.  You can expect the summary and the detail profit and loss reports to agree, but that is all.  Other reports report on other things, such as "sales" and "purchases", which are not the same thing.  Similarly any report oriented around one account, like your bank register, won't by nature include all of the same information as a P&L, and will probably include some that is not on a P&L.

 

 

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6 Comments
MaryLandT
QuickBooks Team

Should expenses on report for Profit and Loss for a month equal the expenses on my bank register report for a given month?

Hi there, kb111,

 

The Profit and Loss (P&L) report shows the individual transaction of your income, expenses, and net income regardless of the bank in the register. While your bank register is another way around.

 

I've got it right here on my end where an expense on the Profit & Loss (P&L) report should show the same amount with one on your bank register. See the attached screenshot below for your visual guide.
expenseinthebankregister.PNG expenseinthePL.PNG

 

Just make sure you've pulled up the same account to get the results. Let me show you how:

 

Open the expense account through the P&L report:

  1. Go to the Reports menu.
  2. Choose Company & Financial, then Profit & Loss Detail.
  3. Click Customize Report, then go to Filters.
  4. Filter the account, then choose the specific expense account.
    insuranceexpense.PNG
  5. Click OK.
  6. Filter the date monthly, then hit Refresh.

Open the expense account through the bank register:

  1. Go to the Lists menu, then choose Chart of Accounts.
  2. Open the same expense account filtered above.
    insuranceexpense1.PNG
  3. Filter the date monthly, then hit Refresh

Check out the Customize company and financial reports to learn more about getting the data based on your needs.

 

You can also memorize the report so you won't have to go through the customization process again.

 

Let me know if you need additional information, and I'm always glad to help you out.

BigRedConsulting
Community Champion

Should expenses on report for Profit and Loss for a month equal the expenses on my bank register report for a given month?

RE: Should expenses on my report for Profit and Loss for a month equal the expenses on my bank register report for a given month?

 

No.  You can expect the summary and the detail profit and loss reports to agree, but that is all.  Other reports report on other things, such as "sales" and "purchases", which are not the same thing.  Similarly any report oriented around one account, like your bank register, won't by nature include all of the same information as a P&L, and will probably include some that is not on a P&L.

 

 

View solution in original post

john-pero
Community Champion

Should expenses on report for Profit and Loss for a month equal the expenses on my bank register report for a given month?

Absolutely agree.  For example loan principal or payment on a credit card are not expenses when paid. And until an account is reconciled one cannot rule out that not all expenses or income is actually recorded

kb111
Level 3

Should expenses on report for Profit and Loss for a month equal the expenses on my bank register report for a given month?

Thank you so much for your explanations!  They were very helpful!

kb111
Level 3

Should expenses on report for Profit and Loss for a month equal the expenses on my bank register report for a given month?

Thank you for explaining further!  That makes more sense now.  

kb111
Level 3

Should expenses on report for Profit and Loss for a month equal the expenses on my bank register report for a given month?

Thank you so much for your response.  I feel better about things now!

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