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Overview
The Profit and Loss statement shows income, cost of goods and expenses for a date range, giving gross and net profit.
Purpose
See whether the business is profitable over any chosen period.
Step-by-step guide
- Open Accounting, then Financial statements.
- Choose Profit and Loss and set the date range.
- Read total income, cost of goods, gross profit, expenses and net profit.
- Export to CSV or print if needed.
Common mistakes
- Comparing periods of different lengths without noting it.
- Expecting balances like receivables to appear on the P&L; those are on the balance sheet.
Best practices
- Review P&L monthly and against the prior period.
- Make sure expenses are categorised correctly.
FAQ
Is the P&L date-accurate?
Yes, it is bounded to the selected date range.
Why is net profit negative?
Expenses and cost of goods exceeded income for that period.