Can I compare the profitability reports to the financials to verify that jobs are being updated correctly?
No. Because the information on the reports and the criteria used to pull that information differs, profitability reports can’t be reconciled to financial statements. Each type of report is useful for analyzing profit in a different way. Looking at profit from two different sides gives you a larger picture, but don’t try to “mix apples and oranges.” The Income Statement reports the profit for the company, both for the period and year-to-date. Overhead expenses such as rent and insurance are shown on the Income Statement, but do not update the job ticket. The cost of labor is posted to the G/L via payroll journal entries or checks. On the other hand, the profitability reports show the profit for the job or client, including time entries and expenses added for overhead charged to the job. If you would like to see how the Income Statement is allocated to clients or jobs, run a Job Income Statement or a Client Income Statement from Financials. The reports can be run for one period and will
