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The net income on the balance sheet doesn't match the income statement

by Intuit EasyACCT 2023 Updated 6 months ago

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:

  1. Go to Print Reports.
  2. Select a General Ledger, Balance Sheet and Income Statement for the applicable period.
  3. 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.
  4. 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.
  5. Make sure all departmental/divisional accounts have a corresponding combining (consolidated) account.
    • You can print the chart of accounts report to verify this.
  6. Make sure the Net Income Accumulator contains all consolidated revenue and expense accounts by doing the following:
    1. Select Goto > Write-up Processing > Update Company files > Financial Statements and select Custom Statements. 
    2. In the Instruction field, type 4 and press Enter.
    3. This will bring up the Net Income Accumulator line.
    4. Make sure the range contains all income and expense accounts.
  7. 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.

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