Profit and loss
The profit and loss statement (Financial Performance in Simple mode) shows what you earned and spent in a period and the resulting net income or net loss.
How it is built
Section titled “How it is built”- Revenue — every revenue-type account: sales, service revenue, discounts received; discounts given reduce it.
- Expenses — every expense-type account, including cost of goods sold and bad-debt expense.
- Net income = revenue − expenses.
- Figures are accrual-based: an invoice counts when it is sent, a purchase when it is finalized, regardless of payment. They are net of tax — VAT and GST sit on the balance sheet, not here.
- Opening balances and year-end closing entries are excluded, so a closed year does not distort the next.
Reading it
Section titled “Reading it”- Pick the period (month, quarter, year to date, custom).
- Period Comparison shows the previous period alongside.
- Each line is an account; open the account in the general ledger to see the postings behind it.
Common questions
Section titled “Common questions”- Why is a paid invoice missing? Check its date — it belongs to the period of its issue date, not the payment date.
- Why is cash lower than profit? Unpaid invoices are revenue but not cash; see the cash flow statement.
- Why is an expense not here? Archived expenses are hidden from all reports; a draft purchase is not yet posted.