I need some help with Quickbooks. My overview shows $X income and $Y expenses, but my account absolutely does not show the same thing

[jlcg1988]

Say for Q4, when I look at my overview, QBO says income: $10,000 and Expenses: $7,000 as a made-up example, therefor it says net income is $3,000.

I am not netting $3,000 in this case.

What the fuck am I missing? As far as I know, that overview accounts for money in vs money out.

 

[paxsincera]

@jlcg1988 Does the 10k in income represent billed work or cash collected? If billed work, you haven’t collected all of the cash yet, creating a discrepancy.

 

[jlcg1988]

@paxsincera My comparison is from QBO to my bank account, I sell a product at a counter. There are no receipts to collect

 

[scentedblessings]

@jlcg1988 Are you selling product or services?

I'm guessing product based and you have set your COGS to "cost averaging" instead of LIFO.

I almost went bankrupt early on in my business because of stupid Quickbooks. Back in the early 2000's, cost averaging was the only method QB allowed. I believe they have changed by now.

 

[jlcg1988]

@scentedblessings Goods but the receipts are batched so it seems the days total as one entry

 

[scentedblessings]

@jlcg1988 How is QBO valuing your inventory? cost average or LIFO?

Yes I understand that the days are batched, but you'll need to look closer and see how QBO is coming to that number. Because as you've said, your bank account is lower than what QBO is saying.

My bet is that your cost per unit isn't accurate. Your cost is actually higher than what QBO is calculating. Sounds stupid I know, but check your books inside QB.

 

[jlcg1988]

@scentedblessings It is literally only set up to monitor the transactions into and out of the bank account.

 

[scentedblessings]

@jlcg1988 ok good luck with that.

 

[jlcg1988]

@scentedblessings The POS handles the inventory and cost analysis

 

[hipsyogbes]

@jlcg1988 Sounds like to me that your cost of goods sold (COGs) are not reflected in your QBO.

What I do, is at the end of every month, I pull the COGs from my POS and you enter it into QBO as a journal entry for that month by debiting your COGs line and crediting your Inventory line.

 

[ben24]

@jlcg1988 Have you talked with a bookkeeper or CPA? I'm guessing it's yo do with being accrual basis and that you may also have assets and liabilies.

 

[mombowlin]

@jlcg1988 When selling a product, your bank account won’t reflect your profit/loss statement. When you purchase inventory, you don’t deduct that purchase price until the inventory sells. So if you bought $7k worth of inventory, your books won’t show $7k of expenses because your assets are now in product instead of in your bank account.