Integrating Profit and Loss Report into a set of books and the trial balance

[Mike or Penny Novack]

On 3/6/2018 10:13 AM, jcnw wrote:
> I am setting up a set of books for a small church and need to run a month
> profit and loss report.
> How do I enter the Net Income for the Period into the books so it shows up
> in the balance sheet?
> I have set up the books with Income, Expense, Asset and Liability accounts.
> Do I need to set up a P&L account.
> Thanks for help and consideration
> John
Ah, somebody who learned in the old days.

No, you don't have to set up a P&L account, close the income and expense 
accounts to it, and close it to main equity.

Just run the "Income Statement" (aka "Profit and Loss Report" aka 
"Statement of Revenues and Expenses" -- which is what a non-profit would 
call it) for the time interval and "Balance Sheet" reports for the 
beginning and end (next period just the end as you will have the before 
from last time).

You CAN "close the books" but you don't have to.

Michael D Novack