[GNC] Question about Profit-Loss Report
Howard M. Fried
cursorsci at gmail.com
Mon May 31 22:13:51 EDT 2021
On 5/31/21 9:08 PM, Alan Hopkins 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:
> 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:
> I hope that is of some help to you
Thank you Alan, and both Michaels. I was an educator for 34 years
before launching a second career as an Editor. Clearly, I need to take
up the role of student and learn some basic accounting methods. I will
certainly examine the materials that you have so kindly provided.
> On 1/6/21 12:42 am, Michael Hendry wrote:
>>> On 31 May 2021, at 15:10, Howard M. Fried<cursorsci at gmail.com> wrote:
>>> I have several invoices that were issued in 2020 but paid in 2021. These funds are 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 include 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 date you made a payment for expenses.
>> I don’t use the business features, but I think that you will be working on an accrual basis, and have reports on Accounts Receivable and Accounts Payable which carry over the end of the financial year.
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