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Yearly Income Statement Net Profit doesn't match bank balances

garyadgaryad Member Posts: 4

On Wave I have two accounts: bank business checking & paypal, I have both of those accounts reconciled in the transactions area. However when I run the income report it is approximately $1,200 different then my bank + paypal balances.

I've went through all the revenue and expenses and they all correlate to actual expenses. The only thing that I can think of is that it's something to do with the accrual accounting, while I'm looking at cash balances. However, my accounts payable is zero.

I've used Wave for 5 years now and haven't run into this issue, so I'm a little stuck trying to find where the difference is coming from?

in Accounting Technical Support

Comments

  • garyadgaryad Member Posts: 4

    Upon further investigation, there appears to be 1,300 of paid invoices that are not being accounted for as income. Not sure how/why, when I go through the invoices, it appears they show that they were paid within this time frame.

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @garyad.

    Can you find those transactions? What account and category are they linked to? That might explain what happened. The income might just be recorded before your timeframe as well (given that Wave uses accrual accounting, so the income would be recorded on the date of invoice creation, not on payment).

  • Renstar6Renstar6 Member Posts: 2

    My account also does not show any of my paid invoices as income.

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @Renstar6.

    I'll need a bit more information to help. Can you give me the invoice date for those invoices? Wave uses accrual accounting, which means that income is recorded at the creation of the invoice rather than on payment. Could that explain the missing income?

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