An invoice is not a bank deposit
Suppose an accrual-based business invoices PKR 100,000 for completed work and records PKR 60,000 of costs. Its profit may be PKR 40,000, but if the customer has not paid, the bank has not received the invoice amount. The unpaid balance is a receivable.
Payments can relate to earlier periods
Collecting an old invoice improves cash without creating the same revenue again. Paying an earlier supplier bill reduces cash while settling a liability already recorded.
Read the reports together
Use profit and loss for performance, the balance sheet for outstanding assets and liabilities, and cash flow for the movement of cash. Review ageing reports to understand which customer and supplier balances need attention.
Keep the accounting basis clear
Cash-basis management views and accrual reports answer different questions. Use the reporting basis appropriate to the business and have an accountant review statutory reporting requirements.
Examples are illustrative, not tax or legal advice. Your accounting policies and local requirements may change the treatment.