Why does QBO use "Net Revenue" at the bottom of a Statement of Activity (and in related location in Statement of Financial Position) instead of "Net Income"?

ameach · ‎November 28, 2018

From all my understanding (as a non-accounting professional who volunteers as Treasurer in our nonprofit), "Net Revenue" is an incorrect term to describe the bottom line of an income statement (or SOA). Assuming this is correct -- and therefore annoying -- I don't see a way to change the terminology within QBO -- meaning my only option for changing it is to run a report, export to Excel, and edit for my own terminology. Would love to know 1) why it seems to use terminology inconsistent with general practice and 2) if there's any other way within QBO to change the term baked into reports or if I'm correct that the only way to adjust is on my own in Excel.

john-pero · ‎November 28, 2018

You are using QBO as a non-profit. Despite my way opf thinking, that even non-profits have income and expenses, just not taxes there should as you seem to agree no difference at all in financial reporting whether the eintity is out for profit or against profit or is out for profit but has a loss - does that make it a non-profit? Nope.

In any event (I dare you to find P&L for a non-profit as a report - guess you are not allowed to have a loss, lol) financial reports for non-profits have funny labels to those that have been in for-profit enterprises only. Only way you can change it is to go back to t he beginning and start your non-profit "company" as a for-profit entity

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Why does QBO use "Net Revenue" at the bottom of a Statement of Activity (and in related location in Statement of Financial Position) instead of "Net Income"?

Why does QBO use "Net Revenue" at the bottom of a Statement of Activity (and in related location in Statement of Financial Position) instead of "Net Income"?

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