Accounting and audit questions keeping you up at night? There’s a handy-dandy guide for that.
If you just need some details about QuickBooks reporting items, we’ve got you covered below.
The cash flow statement QuickBooks generates approximates your organization’s cash activity during the period selected. So, the difference between the cash flow report and the profit-and-loss report can be because of the timing of transactions.
For example, credit card charges can happen throughout a month and may get recorded as they occur. But they get paid the following month when the entire bill is due.
This results in a timing difference between when the charges are reported in the profit-and-loss report and when the cash transacts. QuickBooks can’t identify those timing differences to create an accurate report.
Although there may be timing differences, keep in mind that they shouldn’t be significant each month.
For Nonprofit QuickBooks Users
If your organization is a nonprofit, you don’t have to report the cost of goods sold for donated items. That being said, reporting is not required, but you can estimate it if you want. You only need to report the cost of goods sold for the minor supplies needed to refurbish donated items.
If you wanted to report the cost of goods sold for donated items, you’d have to estimate the margin on the sale of donated items to come up with the cost of sales. And that amount would also cover labor and the value of the donated item.
You’re not required to report the cost of goods sold, but if you did, you’d also have to record income and an expense.
Instead of reporting the cost of goods sold, you could also report the volume of items sold, volunteer hours for refurbishment, or other measures on your 990.
If your business or nonprofit has QuickBooks questions — or other financial reporting questions — let us know.