Good day, @VLS Pilates. I'm here to provide some insights about the net income in your Balance Sheet and Profit and Loss report.
The previous period of P&L is the retained earnings of the current balance sheet. While the retained earnings this year is the P&L of last year.
Also, the reports show different net income due to the following reasons:
- Balance Sheet summarizes data at a specific point in time and Profit & Loss summarizes data just for a selected period.
- The dates or bases of the reports do not match.
- The Fiscal Year preference is not set properly.
- Possible data damage
To fix this, make sure that the parameters are the same. Let's start by verifying the Fiscal year.
- From the Company menu.
- Select My Company.
- Click the Pencil icon.
- Under the Report Information tab, set the correct Fiscal Year.
Then open both reports for all dates. After, let's confirm by changing the report from a cash or accrual basis. If there's still a discrepancy, use this link to resolve possible data issues: Fix data damage on your QuickBooks Desktop company file.
Keep in touch if you have further concerns with reports in QuickBooks. I'll be happy to lend a helping hand. Have a nice day.
