I have a problem where I always have the same discrepancy between the balances report and P&L totals
The opening balance for 1/4/2015 (and 1/4/2014) is correct, each months bank statements reconcile - the P&L to balance is £450.25 out
Checking P&L for all accounting periods and balance sheet seems to match though!
I am perplexed!
Bank activity wouldn’t appear on the P&L only the balance sheet so it’s very unlikely they’ll match.
Are you trying to match the NET profit on the P&L with the bank balance?
I have a set of opening bank balances - I then export the P&L csv - if i add the net profit to the opening balance for a month I am always out by exactly the same amount. Whats different or missing in relation to your commenting on P&L being NET
I’m still struggling to understand what you’re trying to do here?
If you’re adding the NET profit from the P&L to a bank balance, it’s not necessarily going to then correlate to the same bank balance at a later date. The P&L figures are from when invoices are raised not paid, also there may be bank transfers on the bank accounts that won’t show on the bottom line of the P&L.
that very nicely answers the problem - the discrepancy is transfers, thank you
The discrepancy will be anything that isn’t part of P&L, so transfers between accounts, purchases of assets (as opposed to general purchases or expenses), tax payments to or refunds from HMRC, etc.