Sales in P&L Reporting vs Paid Income Huge Number Difference

ctdookctdook Member Posts: 6

In the P&L report under sales line, which represents the total revenue my company generated has a wide discrepancy against income collected. I've accounted for slight variance due to credits/refunds, however, this doesn't explain why there can be such a huge difference. I'm off by about $20k.

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  • MikegMikeg Member Posts: 257 ✭✭

    Do you use Wave invoicing? If so, sales is going to contain invoices issued but not paid. You can drill into account and change from accrual to cash. That should give you the cash sales.

  • SallySally Member Posts: 2

    I would like to change from accrual to cash but I can't figure out how to do that. Would you walk me through? Thanks!

  • MikegMikeg Member Posts: 257 ✭✭

    Sally,
    To change strictly to cash basis in Wave means you change how financial transactions are entered. Only cash items would be included. Using the invoicing aspect of Wave automatically posts invoices created to sales. You can see cash sales by running an income statement under reports, click details, click on your sales account. Top left side, change to cash click update. I have several clients that use two companies. One for invoicing and one for accounting. You can still issue invoices without affecting the cash basis accounting because they are separate. Hope that makes sense.

  • Ryan_WRyan_W Administrator Posts: 460 admin

    @Sally I have to echo Mike's sentiment here; although you can't change the actual accounting logic in Wave from accrual to cash, you can view specific reports on a cash basis. To do this, click Reports, and then you'll be able to (for example) select the Account Transactions report. You'll see the option to change it to cash-based rather than accrual in the "type" filter. Hope that helps!

  • SallySally Member Posts: 2

    @Ryan_W , @Mikeg
    Yes that helps. Thanks. I had discovered that function under Reports.
    Do you see any problem with me generating a Profit and Loss report, downloading those numbers into a CSV and then just substituting the cash figures for invoice sales from the report and re-figuring the totals? That's what I have done and it seemed to work.

  • MikegMikeg Member Posts: 257 ✭✭

    Sally,
    That's going to depend on how your business gets reported for tax purposes. Meaning, do you need to present a balance sheet? (C Corp, S Corp, Partnership). If so, some adjustments would need to be made. If you don't need to report a balance sheet, then what you are doing is fine.
    Mike G, CPA
    www.mgfinancial.net
    Better service - Better pricing

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