profit is not matching

Hi Ashley,

This difference occurs because of the different reporting methods between the P&L and the Quarterly updates. The Profit and Loss report is calculated on an accruals basis, meaning it recognises income and expenses according to the dates of your invoices and bills, regardless of whether the funds have actually been received or paid.

In contrast, your quarterly returns are calculated on a cash basis, which records income and expenditure only when money is physically received or paid out during the period. Because of this, any invoices that have been issued but not yet paid, or payments received in a different period from the invoice date, will create a timing difference between your cash earnings and the profit reported on the Profit and Loss.

Tommy