I’m looking to send my profit and loss accounts to the banks for funding, however I’m so confused by them.
I just want to show all the money has come in and out of the business over the last couple of months and thought the P&L would do this?
However, the sales seem to missing VAT but I take this is meant to happen?
More, importantly the figures for expenditure seem to be way off. For example, I have paid suppliers for stock and it clearly shows in purchases on the dashboard and is listed as a transaction on the bank statements page but I can’t find anywhere in the Profit and Loss account.
Any help would be appreciated? If I just want to see a summary of money in and out of the business is there an easier report for this?
A P&L would be what you would normally issue to a prospective lender to show a company’s profitability. Reporting on the cash position doesn’t provide an accurate picture as you’re including things like VAT which belong on the balance sheet.
One thing I did see on your accounts is a significant volume of purchases posted to “Stock” this is a balance sheet code and won’t feature on the P&L. If you’re holding stock long term then it’s fine to post it here but if it is being actively disposed of then you’d need to journal it to closing stock or general purchases so it then features on the P&L.