Why is cash deposited in the bank not the same number as Cash Basis income?


These items can cause a discrepancy between the two: 

  • Transaction Categories that are mapped to non-income accounts that were paid that period.
  • Journal Entries to income accounts
  • Security Deposits paid in
  • Security Deposits forfeited (deposits applied to balance)
  • Prepayments from last month that were applied to charges this month
  • Paid charges created in a prior month that were reversed in this month


You can account for the Prepayments by:

Profit & Loss - Total Income

- Minus Beginning Prepaid balance

+ Ending Prepaid balance

(Note: You need to get these numbers from the General Ledger balances, not from the GPR to Cash Reconciliation Report).


You can account for Security Deposits forfeited by:

Profit & Loss - Total Income

- Deposits Applied to Balance (from the GPR to Cash Reconciliation report)

(Note: If the deposit was originally a credit that was transformed into a Deposit, you will be off by that amount.  In that situation, the amount applied is NOT income, however it is included on the report number)

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