Profit v taxable profit - why different
Question asked by Maggie Stonadge 3 weeks ago
On dashboard, the value of taxable profit for MTD report and profit differ - why is this?
Hi Maggie,
The difference can be caused by the various reasons below:
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MTD quarterly updates default to the cash basis of accounting. This means income and expenses are picked up on the payment date. Whereas, the Profit and Loss report is based on an accruals basis, that is, the invoice date. The difference can be caused by any invoices that are created but have a different payment date or have not yet been marked as paid.
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Your accounting period under Settings > Periods is set as calendar periods from the 1st April, whereas, your MTD period is set as standard, from 6th April.
Tommy
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