The net income on the income statement doesn't equal the income on the balance sheet for divisional or departmental companies in EasyACCT.
For a company that's set up with departments or divisions, the net income on your income statement and balance sheet should be equal.
If the client has a standard company without departments or divisions, refer to this article instead.
Follow these steps to make the net income on the income statement and balance sheet match:
- Go to Print Reports.
- Select a General Ledger, Balance Sheet and Income Statement for the applicable period.
- Determine which financial statement is incorrect by comparing the Y-T-D Profit on the General Ledger with the Current Income (Loss) on the Balance Sheet and with the Net Income (Loss) on the Income Statement.
- The statement that doesn't match the General Ledger is probably incorrect.
- Make sure the balances in the departmental/divisional accounts are included in the total for the consolidated account.
- For example, if account 1300 has a balance of $500 and account 2300 has a balance of $700, then account 300 should have a balance of $1,200. You can verify this by printing a Trial Balance or by comparing the departmental/divisional and combined statements.
- Make sure all departmental/divisional accounts have a corresponding combining (consolidated) account.
- You can print the chart of accounts report to verify this.
- Make sure the Net Income Accumulator contains all consolidated revenue and expense accounts by doing the following:
- Select Goto > Write-up Processing > Update Company files > Financial Statements and select Custom Statements.
- In the Instruction field, type 4 and press Enter.
- This will bring up the Net Income Accumulator line.
- Make sure the range contains all income and expense accounts.
- Make sure that the account types are correct:
- For a departmental company, consolidated accounts should have account types of A, L, I, and C.
- For a divisional company, consolidated accounts should have account types P, D, I, and C.
- Departmental or divisional accounts should have account types of A, L, R, and E.