I’m not an accountant but use QuickFile to help with bookkeeping which I manage myself as the owner of a small company. I recently had my end of year accounts done and the accountant was able to access my QuickFile account to obtain the figures for the formal accounts. However I noticed that the Profit & Loss report issued by the accountant differed slightly from the QuickFile P & L report for the same period
I had employed a sub-contractor on a particular project and had included those costs under 6002 Sub-Contractors as they were a direct cost of sales which were indirectly rebilled to the client together with a mark-up, much the same as materials used which were assigned to 5000 General Purchases.
The accountant’s P&L report showed those costs under Cost of Sales and separate from Administrative Expenses [accountant’s heading] but the QuickFile P&L report shows 6002 Sub-Contractors as Expenses [QuickFile heading] along with 7000 Gross Wages, 7001 Directors Salaries etc.
Is this behaviour in QuickfFle because ‘Direct’ Expenses categories (6000 - 6999) are treated in the same way as Overheads (7000 - 9999) when creating the P&L Report? Is it possible for the P&L report be modified to re-assign categories to align with the accountant’s P&L report?
If not, perhaps this can be changed by creating a new category: - say 5300 CoS Sub-Contractors for example? In that way the costs would appear as cost of sales rather than an expense.
[Edit] - I found an option under Advance Settings: - “Combine Direct Expenses with CoS on the P&L Report On | Off”. This is exactly what I was looking for, so now the P&L report is the same as the company accounts one!