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      What is a Profit & Loss Report?

      The Profit and Loss Report (P&L) is a Report that shows your total Income and your total Expenses in a specific period of time. This Report also goes by a few other names, so it might be referred to as an “Income Statement”, a “Statement of Operations”, a “Statement of Financial Results” or “Income & Expense Statement”. 

       

      You can run a Profit & Loss Report by doing the following:

      1. Go to the Reports section
      2. Select Profit & Loss under Accounting Reports.


      Settings

      To adjust your view of the Profit & Loss Report, click on Filters under Settings. From there, you can change: 

      Filters on the profit and loss report.

      • Reset all - Click on this link to restore the filters back to the default settings
      • Date Range - Choose from This Year, Last Year, This Quarter, Last Quarter, or Custom to enter a specific date range (or if you’ve changed your Fiscal Year End date, choose from the extra options)
      • Income - Run the Profit & Loss Report by either Billed (Accrual) or Collected (Cash-Based) income:
        • Billed - This will show you income info for everything that has been sent out, whether the Invoice has been paid or not
        • Collected - This will show you income information only for those Invoices which have been paid
      • Group By - Choose to see your Income and Expenses by Month or by Quarter
      • Currency - Toggle between multiple currencies

       

      The Income section of the Report will display your sales for the period from both Invoices and Other Income entries. If you run the report in Collected (Cash-Based), you can click on any of the blue numbers under any period to see the specific payments in the Payments section that make up the total.

      The Cost of Goods Sold will display the sum of Expenses that have been rebilled to your Clients. You can learn more about COGS and how to mark Expenses or Categories as COGS here.

      The Less Expenses section will display all of your Expenses for the period. The sum of your Expenses are easily viewed in the Total Expenses row. Expense Refunds will be reflected in the Total Expenses, but not in the Refunded Expense Category.

      Net Profit is the total amount earned (or lost) after Expenses. It is worked out by subtracting your Total Expenses from your Gross Profit.

       

      Watch a Reports-specific webinar that covers some of our common reports including the Profit and Loss Report in more detail here.

       

      FAQs

      How does the Profit & Loss Report handle multiple currencies?

      If you’ve sent Invoices in multiple currencies, you can use the Currency toggle under Filters to run your Profit & Loss in different currencies.


      Where are the Sales Taxes?

      Sales Taxes are not included in the Profit & Loss Report, so you don’t overstate your Income. This information can be pulled from the Sales Tax Summary Report and your Invoice Details Report.


      How do Deposits work on the Profit & Loss Report?

      Because Deposits are made to prior to the delivery of goods/services (in most cases), they are not initially recorded as Income.

      When a Deposit is paid (or additional payments are made), only the paid amount will appear on both Collected and Billed settings.


      How do I get my P&L to display monthly totals?

      1. Click on the filter icon next to the Profit and Loss title at the top left
      2. Under Group By, select Month
      3. Click Apply
      4. On the report, click on the Enlarge button in the top right corner, and you'll see a landscape view of the P&L with all the months visible.Enlarge button on profit and loss report.

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