Profit and Loss Report

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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.