How the profit and loss calculatesThere are different ways that a profit and loss can be organised and calculated. This can be differences in the layout and labelling of each section as well as differences to how it calculates net and gross profit.
On the customisable Profit and Loss, you'll notice that sections are in a different order and the calculated values for your gross profit are different. There is no right or wrong answer here, just different ways to work it out. Current layout- Your Gross Profit is calculated from Sales plus Other Income minus Direct Expenses
- Net Profit = Gross Profit minus Overheads
For example, you have the following: £1800 of Sales, £200 of Other Income, £500 of Direct Expenses and £300 of Overheads. | Current Profit and Loss |
| Gross Profit = Sales plus Other Income minus Direct Expenses | 1800 +200 - 500 = 1500 | Net Profit = Gross Profit minus Overheads | 1500 - 300 = 1200 |
How your customisable Profit and Loss is differentYour customisable profit and loss: - Has three pre-configured Default views, to give you 3 ways to view your Profit and Loss out of the box. The customisable report combines the existing standard and comparative reports
- Has the option to choose a new Date Range for each View, with handy visual date range descriptions so you always know exactly what date range you are going to report on
- Allows you to use multiple date range types and choose to show totals for selected periods or as a single total
- Lets you compare across periods or financial years and track the variance across periods
How to use the customisable profit and lossWe have created 3 default views for the report which cover the periods most businesses want to run the report for. Alternatively, use the Period filter to set your own date range. Use the Default Views at the top of the report- Year to date - shows your balances up to the end of the current month
- Prior year comparison - compare your balances with the same period last year
- Per month - shows your balances month by month for the current financial year with an additional column to show the balance bought forward from the previous year
Set your own date range, such as this quarter, last quarter or your own custom date range.- Select the Edit icon
 next to Period on the Customise report panel. - Chose a period or set your own custom one.
- Choose Run Report.
Add additional comparison columns, to get a flavour of how your business is performing compared to the previous period or the same period in a previous financial year. The Prior year Comparison view shows your balances for the current month and YTD for both the current and previous financial year, including a variance percentage. A negative variance indicates a drop compared to the previous year. In addition, use the Filters to analyse multiple periods or years. This adds columns for a previous period or previous year, plus a column to show the variance. The variance can be shown as percentage, an amount or both, showing you at a glance where your business is performing better or worse.  
- From the Default views, choose Prior year Comparison.
- From the Customise report panel, choose Columns.
- Select to add a column for the Previous Period or Year.
- Choose how to show the variance.
- Click Run report.
Gross or net profit variance % is blankThe calculation for the variance in Gross or Net profit has not yet been included in the customisable report, so the value will currently show as blank. We are working to resolve this and will update the report as we continue to build out improvements. Sometimes it's useful to see your businessman performance over each month or quarter, including a year to date. This show the values for each month or quarter in your financial year plus a column for the year to date. Choose This year to add column for the whole financial year or This year to date to just see up the current period. - Select the Edit icon next to Period on the Customise report panel.
- Choose This year or This year to Date.
- Choose to view periods by month or quarter.
- Click Apply.
- From Columns, choose Year to date (YTD) closing balances.
Show values as a running total from the beginning of the year to the end of each period.  
- From the Customise report panel, choose Columns.
- Choose As cumulative over a period of time.
- Click Run Report.
To see your business in more detail, expand the report to show totals for individual ledger accounts. This helps you understand where the numbers come from. To just see rolled up totals, clear the relevance check boxes. For example, under Overheads, see how much you've spent your various types of expenses such as utility bills, rent office expense, wages etc. - From the Customise report panel, select Rows.
- Choose or clear the Account check box.
- Choose how you to display the nominal code.
- Click Run report.
Check how profitable the different areas of your business are and compare them side by side. If you're using analysis types, then you can filter the report to just show income and expenses per type and category. For example, compare the income and expenses for your sales, admin and a warehouse teams. Read more about analysis types. This adds a column to the report for each category so you can see them side by side. Alternatively choose to see as a total value.  
 NOTE: You can only select 1 analysis type in your report.
- From the Customise report panel, click Filters.
- Click Add on the analysis type you want to compare.
- Select a maximum of 5 categories.
- Click Apply and then Run report.
Click Delete to remove the active filter and return to the original report. Open our useful guides to find out more about analysis types: Drill down balancesIf you see balances you want to investigate, you can drill down on the balances to see details. Select any underlined balance to see what makes it up. If you drill down on: - An amount which spans many accounts or months, the Nominal Activity Summary report opens for you to review the balances
- A single account for a month the Nominal Activity Detailed report opens for you to review the transactions made to the account
To return to the original report, close the open report (or reports) or select Back in your browser. Share your report with othersWhen you're happy with your report, you can save or export it. Select: - Save as. To name the report and save it to run again later. You can find your named report on the Custom tab. Or
- Export. To save a copy for your records or to share with others. You can choose PDF, CSV, or Excel format#
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