Profit & Loss

A Profit and Loss (P&L) statement, also known as an income statement, is a crucial financial document that summarizes the revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year. This statement is essential for businesses to assess their financial performance, identify profitability, and make informed decisions.

How to check Profit & Loss Report.

Go to the Reports menu and click on Profit & Loss.
The Profit & Loss Dashboard will open. You can check a specific month's data by selecting the date range located at the top right of the dashboard.

Components of a Profit & Loss Statement

Income

Income represents the total earnings generated by a business from its normal operations. This is often referred to as revenue or sales. It includes all money earned from selling goods or providing services. For example, for a retail business, this would be the total amount earned from selling products.

Expense

Expense refers to the costs incurred in the process of earning revenue. These are the costs required to run the business and produce the goods or services sold.

Net Profit

Net Profit, also known as net income or bottom line, is the final profit after all expenses, including operating expenses, interest, and taxes, have been deducted from total income.