Reading the Profit and Loss Report

Revenue, Costs, and Net Profit Over a Period

Go to Accounting > Reporting > Profit and Loss. Unlike the Balance Sheet, this report always covers a date range (default: this fiscal year to date).

The Waterfall

1. Revenue – all income accounts.
2. Less Cost of Revenue – direct costs of what you sold.
3. = Gross Profit
4. Less Operating Expenses – overhead, salaries, rent, etc.
5. = Operating Income (or Loss)
6. Plus Other Income / Less Other Expenses – non-operating items (interest, one-off gains/losses).
7. = Net Profit

This Net Profit figure — scoped to the current fiscal year — is exactly what the Balance Sheet's "Net Income (Current Year)" line pulls in live.

Comparing Periods

Use the comparison filter to add columns for prior months/quarters/years side by side — the fastest way to spot a cost that's crept up or a revenue line that's slipping, rather than staring at one period in isolation.

Budgets on the P&L

If budgets are configured (see the Budgets course), enable "Show Budgets" to add a Budget column and variance alongside Actuals directly on this report.