Reports

Understanding Profit & Loss Reports

Revenue minus cost of goods minus expenses equals profit.

The Profit & Loss (P&L) report tells you what you actually earned after costs.

When to use this

Monthly to make business decisions, to see if prices are high enough, or before applying for a loan.

Step-by-step

  1. Open Reports > Profit & Loss.
  2. Pick period. Month, quarter, custom range.
  3. Review lines. Revenue, cost of goods sold, gross profit, expenses, net profit.
  4. Drill down. Tap a line to see the details.

Common issues

  • Gross profit looks too high: some products have no cost price set. Fix them under Products.
  • Net profit off: log all expenses in Expenses for accurate numbers.

Was this article helpful?