Profit and Loss
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The Profit & Loss Report (commonly known as P&L) is along with your Balance Sheet and Trial Balance one of the most crucial reports when running a business. A Profit & Loss report lists your Turnover less your Cost of Sales to give you your Gross Profit. Expenses are then subtracted from your Gross Profit to give you your net profit.
Running the report
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Go to Home > Reports > Financial, then select Profit and Loss.
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Select the Time period, Start date ,and End date.
Profit and Loss reports are usually run for financial years, meaning your start date should usually be the financial year start and the end date would be the last day of your financial year.
The figures will update according to your selections.
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Any comments added will be available while you are preparing the report and will appear on the downloaded or printed reports, however, they will not be stored in IRIS KashFlow to refer to at a later stage.
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You can download a CSV copy, Print, or Email the report.
To download the report in PDF format, you can select Print, then the download icon.
Report settings
You can update the content settings and layout of the report in Settings. Any changes made here will apply to Balance Sheet, Aged Creditors, Profit and Loss, and Trial Balance reports.
Understanding Profit and Loss
The Profit and Loss report will total how much each Nominal Code has made (or lost) over the period you have selected. By totalling all these figures and subtracting the appropriate amounts you will be left with a Gross Profit and a Net Profit.
Troubleshooting
Nominal Code in the wrong section
If you have noticed that you have got a nominal code recorded as Turnover when it is an Expense, then you have misclassified the nominal. You can correct this by selecting Edit Nominals . Then, classify your nominal code using the selectors under Area.
Nominal Code should be on the Balance Sheet
If you have got a nominal code on your Profit and Loss report when really it should be on your Balance Sheet, then you have misclassified the nominal. You can correct this by selecting Edit Nominals . Then, classify your nominal code using the selectors under Type.
We cannot advise on where your nominal codes should be classified, if you are unsure you should talk to your accountant.