Profit and Loss

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

1. Open Accounting, then Financial statements.
2. Choose Profit and Loss and set the date range.
3. Read total income, cost of goods, gross profit, expenses and net profit.
4. 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.