Profit & Loss Report

The Profit & Loss (P&L) report — also called the Income Statement — shows your business's revenue, costs, and profit or loss over a selected period. It answers the most fundamental business question: Are we making money?

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How to View the P&L

1. Go to Reports
2. Select Profit & Loss
3. Choose your date range
4. The report loads automatically

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Report Structure

INCOME
  Sales                          AED 150,000
  Other Income                   AED   5,000
─────────────────────────────────────────────
Total Income                     AED 155,000

COST OF SALES
  Cost of Goods Sold             AED  60,000
─────────────────────────────────────────────
Gross Profit                     AED  95,000

OPERATING EXPENSES
  Salaries & Wages               AED  30,000
  Rent                           AED  10,000
  Advertising & Promotion        AED   5,000
  Office Expenses                AED   2,000
─────────────────────────────────────────────
Total Operating Expenses         AED  47,000

NET PROFIT / (LOSS)              AED  48,000

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Key Figures Explained

Figure	What It Means
Total Income	All revenue from approved invoices and other income sources
Cost of Sales	Direct costs tied to delivering your product/service
Gross Profit	Income minus cost of sales — your core trading profit
Operating Expenses	Overhead costs (salaries, rent, admin, etc.)
Net Profit / (Loss)	What's left after all costs. Positive = profit, negative = loss.

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Tips for Reading Your P&L

• Gross Profit Margin = (Gross Profit ÷ Total Income) × 100. A healthy margin varies by industry — retail is typically 20–50%, services can be 60–80%.
• Compare periods — Run the P&L side by side for the current and previous year to spot trends.
• Watch expense growth — If expenses are growing faster than income, your profit margin is shrinking.

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Frequently Asked Questions

Why is my P&L different from my bank balance?
The P&L is accrual-based — it records income when invoiced and expenses when billed, not when cash changes hands. Your bank balance is cash-based. The difference is reconciled in the Cash Flow Statement.

My income looks wrong — what should I check?

• Are all invoices approved (not in Draft)?
• Is the date range correct?
• Are invoices posted to an Income account (not an Asset or Expense account)?

Can I export the P&L to Excel?
Currently, export to PDF is supported. You can copy the data manually from the PDF for Excel.