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Overview

The Profit & Loss (or Income Statement) summarizes a Business’s revenue and expenses over a specific period. It calculates net income (profit or loss) by subtracting total expenses from total revenue. Key components:
  • Revenue – Money earned from Business operations.
  • Cost of Goods Sold (COGS) – Direct costs of producing goods or services.
  • Gross Profit – Revenue minus COGS.
  • Operating Expenses – Costs of running the Business (e.g., salaries, rent, utilities).
  • Net Income – The final profit or loss after all expenses are deducted.
A Profit & Loss Report helps Businesses assess profitability and track financial performance over time.

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How to Generate a Profit and Loss Report

  1. Call the Retrieve the Profit and Loss Report endpoint with:
    1. Business ID
    2. Start Date
    3. End Date
  2. Use the returned data to structure the report as follows:
    1. Revenue
      • Sales Revenue
      • Other Revenue ledgers
      • Total Revenue
    2. Cost of Goods Sold
      • Cost of goods sold
      • Other COGS ledgers
      • Total COGS
    3. Gross Profit
    4. Operating Expenses
      • Display all relevant Operating Expense ledgers
      • Total Operating Expenses
    5. Operating Profit
    6. Other Incomes and Expenses
      • Other income (e.g., investment earnings)
      • Other expenses (e.g., loan interest payments)
    7. Net Profit

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P&L Best Practices

  • Filter by date range – Use a date picker with standard periods like months, quarters, and years to give users control.
  • Hide zero-value Ledgers – The API returns all Ledgers, including those with a balance of $0. Hiding these improves clarity.
  • Enable drill-down into ledgers – Users may want to inspect specific ledgers. Use the Ledger Statement report to provide detailed transaction data.
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