The Profit and Loss Report is a summary of the financial performance of a business over time (monthly, quarterly or annually is most common). It reflects the past performance of the business and is the report most often used by small business owners to track how their business is performing. There are different calculation and format setting on Cash basis or Accrual Basis.
Field explained in Profit & Loss Report
1.Date From: This is the first day of current financial year by default. It must be before Date To, otherwise, reminder of “Your Date from Time must be no great than your Date to Time!”
2.Date To: This is the end date when user wishes to finalise the report, which default as today’s date.
3.Date from and Date to needs to be within same financial year, otherwise reminder of “ Your Date from and Date to must be in the same financial year!” will pop out.
4.Compare to: User may compare the current Trial Balance with the other period by selecting from the following options.
5.Compare Periods: User may compare the current balance sheet with several previous periods by selecting from Compare Periods.
6.Include Inactive Account: This has been un-ticked by default. Only active account transaction would be included in the report initially.
7.Include Zero Balances was selected by default.
8.Created: This is the date when the report is generated.
9.Company name and logo will be displayed at right corner, followed with physical company address.
10.ABN: This is the information saved in Company information.
11.Email: This is the information saved in Company information.
12.Profit Loss report will display the balance of Income Account, Other Income Account, Cost of Sales Account, Expenses Account and Other Expenses Account, and then calculate Gross Profit, Operating Profit and Net Profit with the following equations.
a.Gross Profit = Income - Cost of Sales
b.Operating Profit = Gross Profit – Expenses
c.Net Profit = Operating Profit + Other Income - Other Expenses
13.The amount in Report would be maintained as maximum two decimal places by default.