[GNC] Question about Profit-Loss Report

Tue Jun 1 07:42:40 EDT 2021

In our jurisdiction farms are permitted to choose whether to use cash or accrual, and there are various tax advantages to using cash-based.

Happily, December/January is the time of lightest business, so the difference isn’t huge when it comes to accounting.

I do find I need to unpost and re-post invoices (dated Dec 31) when they are issued but not paid; and similarly bills that are issued but not due (or paid) until after the year end I post with a January 1 date.

If and when I’m audited by the taxing authorities I explain what I’ve done and they’re good with it.

> On May 31, 2021, at 9:08 PM, Alan Hopkins <hoppo52 at gmail.com> wrote:
> 
>   Hello Howard
>   I agree with both Michaels - you need to understand the difference
>   between accounting records & reports prepared on an accruals basis vs a
>   cash basis. You should do some reading on basic accounting.
>   GNUCash used for business uses the accrual basis - (invoices are
>   registered in accounts receivable, bills are registered in accounts
>   payable).  Depending on the number of invoices & bills involved, you
>   may find that you need to develop your own cash report on a
>   spreadsheet.
>   Some of these links may  be of help to you:
>   [1]https://www.accountingtools.com/articles/how-to-convert-accrual-basi <https://www.accountingtools.com/articles/how-to-convert-accrual-basi>
>   s-to-cash-basis-accounting.html
>   [2]https://www.bookstime.com/articles/accrual-to-cash-conversion <https://www.bookstime.com/articles/accrual-to-cash-conversion>
>   [3]https://www.double-entry-bookkeeping.com/bookkeeping-basics/accrual- <https://www.double-entry-bookkeeping.com/bookkeeping-basics/accrual->
>   to-cash-conversion-excel-worksheet/
>   GNUCash is excellent software (a big thank you to the developers!) and
>   you can get more understanding of basic accounting and using the
>   business features by referring to the Tutorial & Concepts guide:
>   [4]https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide <https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide>
>   I hope that is of some help to you
>   Cheers
>   Alan
> 
>   On 1/6/21 12:42 am, Michael Hendry wrote:
> 
> On 31 May 2021, at 15:10, Howard M. Fried [5]<cursorsci at gmail.com <mailto:cursorsci at gmail.com>> wrote:
> 
> I have several invoices that were issued in 2020 but paid in 2021. These funds a
> re not included in a P&L report for 2021, apparently because the report is based
> on date of invoice issue, or have I missed something.
> 
> Is it possible to get the 2020 Sales that were paid in 2021 into the report for
> 2021?  Simply extending the Report date range backward is not a solution because
> many invoices that were issued and paid in 2020 will be included.  Or am I to i
> nclude unrealized assets for 2020 as profit, like the P&L report does (I have no
> accounting, financial, or legal experience in such matters).
> 
> Thank you for considering,
> Howard Fried
> 
> Not an accountant either, Howard, but I believe the approach varies according to
> whether your books are kept on a cash or an accrual basis.
> 
> If cash, then reports are based on the date when you received income, or the dat
> e you made a payment for expenses.
> 
> I don’t use the business features, but I think that you will be working on an ac
> crual basis, and have reports on Accounts Receivable and Accounts Payable which
> carry over the end of the financial year.
> 
> Michael
> 
> 
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> References
> 
>   1. https://www.accountingtools.com/articles/how-to-convert-accrual-basis-to-cash-basis-accounting.html <https://www.accountingtools.com/articles/how-to-convert-accrual-basis-to-cash-basis-accounting.html>
>   2. https://www.bookstime.com/articles/accrual-to-cash-conversion <https://www.bookstime.com/articles/accrual-to-cash-conversion>
>   3. https://www.double-entry-bookkeeping.com/bookkeeping-basics/accrual-to-cash-conversion-excel-worksheet/ <https://www.double-entry-bookkeeping.com/bookkeeping-basics/accrual-to-cash-conversion-excel-worksheet/>
>   4. https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide <https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide>
>   5. mailto:cursorsci at gmail.com <mailto:cursorsci at gmail.com>
>   6. mailto:gnucash-user at gnucash.org <mailto:gnucash-user at gnucash.org>
>   7. https://lists.gnucash.org/mailman/listinfo/gnucash-user <https://lists.gnucash.org/mailman/listinfo/gnucash-user>
>   8. https://wiki.gnucash.org/wiki/Mailing_Lists <https://wiki.gnucash.org/wiki/Mailing_Lists>
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