Profit and Loss Statement

user250922 · ‎March 02, 2024

I feel like I'm missing something very simple.

I'm a very small online ecommerce company - maybe 200 transactions per month, mostly sales. The rest would be advertising (Google Ads), Shipping (a 3PL company) etc.

Both Google and Shipping company bill be after the month. So I get billed for January shipping and advertising in February.

If I do profit and loss statement for January, all the sales would be made in January, but the shipping and advertising costs would be those covering the month of Deem

JamaicaA · ‎March 02, 2024

Thank you for elaborating your concern well, user250922. I'll share some steps to generate sales, advertising, and shipping in the P&L report accurately.

You can change the accounting method of a report to see all the income and expenses when you send an invoice or record a bill without receiving any payment. Just make sure to select the correct report period to show the transactions. Follow the steps below:

Go to the Reports menu to search for Profit & Loss report.
Under the Accounting method, choose Accrual or click the Customize button to open the Customize Report window and change the setting in the General section.
Set the date range on the report period, then Run report.

If you want to modify the accounting method for your company, please note that it. Here's how to change the accounting method:

Go to the Gear icon, then select Account and settings.
On to the Advanced tab, navigate to the Accounting section, and click the Edit ✎ icon.
Change the Accounting method to Accrual.
Select Save, then Done.

For more information about the Cash and Accrual methods, refer to this article: Choose between cash and accrual accounting methods in QuickBooks Online.

Lastly, bookmark this guide to learn how accounting methods affect sales tax: How Cash and Accrual accounting affect sales tax.

Please let me know if you have any other concerns about tailoring reports. I'll be happy to assist you further. Have a great day!