TIP: If the numbers on a profit & loss report appear to be incorrect, use the following troubleshooting steps to diagnose the problem.
Report filters
If you have customized a report, the filters you have chosen may prevent the report from displaying as intended. You can view your information with the default filters by choosing a standard report. This ensures that filters are not blocking information. From the QuickBooks® Reports menu, choose Company & Financial, and then choose Profit & Loss Standard.
Report dates
- Check the dates on your report. To change them, click the arrow in the Date field on the Profit & Loss report, and choose the time period you want. For a custom setup, manually enter dates in the From and To fields.
- Most of the date options default to your company's fiscal year, not the calendar year. For example, if your fiscal year starts on February 1st, a report set for the dates "This fiscal year" will show dates of 02/01 to 01/31. Your fiscal year setting is stored in the Company Information window under the Company menu.
- When comparing your Profit & Loss report to the Balance Sheet report, note that the date(s) can produce different results. The date on a balance sheet report means as of a certain date. A profit and loss report uses the time period determined by specified From and To dates.
Tip: Set the From date on your Profit & Loss report to the date of your earliest transaction. This makes the date the same as your balance sheet report.
Report basis
Check whether you are reporting on a cash or accrual basis by clicking the Modify Report button. QuickBooks® allows you to report using either basis and the ability to switch at any time.
- Cash Basis reports show income and expenses at the time they are paid.
- Accrual Basis reports show income and expenses based on the dates they were billed or invoiced.
Note: QuickBooks® tracks Credit Card accounts using the accrual method.
Sales Items
Make sure your sales or invoice items are set up to reference or post to income accounts. A common error occurs when you assign sales items to an asset or liability account. QuickBooks® is unable to update your income accounts if you use an asset or liability account to track these items.
From the Lists menu, choose Item List. Check the Account column to make sure all items are associated with income accounts. If necessary, double-click an item to edit it. When you change an account on an item, you will see the message:
"You changed an Income Account associated with this item. All future transactions with this item will use this new account. Would you like existing transactions with this item to use this new account?"
Click Yes to make all existing transactions containing the item report to this income account.
Note: If you do find an incorrect number on the Profit & Loss report, QuickZoom (double-click) on it to view the transactions that make up that number. You can also QuickZoom on an individual transaction to view the entry itself. Be sure to save any changes you make to transactions, and to refresh your report to see updated information.
