Frequently Asked Questions

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. It’s a really useful Report as it shows you your net profit (or loss) based on your Income & Expenses, and that can be used to come up with some cost-cutting strategies!

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”. In FreshBooks, we call them Profit & Loss Reports.

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

  1. Go to the Dashboard
  2. Scroll to the bottom to the Advanced Reports section
  3. Select Profit & Loss
     

There are a few things you're able to change when running the Profit & Loss Report. Click on the button next to the Report title, and you'll see some filters: Profit and loss report with filter settings.

The Income section of the Report will display your sales for the period.

The Cost of Goods Sold will display the sum of Expenses that have been re-billed 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.

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

  • Date Range - With the date range drop down, you're able to choose one of the preset ranges (This Year, Last Year, This Quarter, Last Quarter) or choose a Custom date range so you're able to find exactly what you're looking for
  • Income - You can choose to run the Profit & Loss Report with either Billed or Collected 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
  • Currency - If you've either billed or tracked Expenses in different currencies, you can toggle the currency of your Profit & Loss Report 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 our 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?

Just adjust your filters to reflect the date range (preferably Yearly or Custom) and currency, then use the More Actions button to export it as an Excel file. The monthly breakdown will now be displayed on the CSV where you have more room to work with.

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