What Is a Profit & Loss Statement?
The Profit & Loss statement (also called an Income Statement) shows your business revenues and expenses over a period of time and tells you whether your business made a profit or a loss.
Accessing the P&L Report
Go to Reports → Profit & Loss. You can filter by:
- Date range: This month, last month, this quarter, this year, custom range
- Comparison: Compare against same period last year, previous quarter, or budget
- Basis: Cash (when money was received/paid) or Accrual (when invoiced/billed)
Reading the Report
The P&L is structured in four sections:
1. Revenue (Income)
All money earned from selling products or services. Acculyt AI breaks this down by income category:
- Product sales
- Service revenue
- Subscription income
- Other income
2. Cost of Goods Sold (COGS)
Direct costs associated with producing your products or services:
- Raw materials
- Direct labour
- Manufacturing overhead
Gross Profit = Revenue − COGS
Your Gross Margin is Gross Profit ÷ Revenue × 100. A healthy gross margin varies by industry (software: 70-90%, retail: 20-50%).
3. Operating Expenses
All other business costs not directly tied to production:
- Rent and utilities
- Salaries (non-production staff)
- Marketing and advertising
- Software subscriptions
- Professional services
- Depreciation
Operating Profit (EBIT) = Gross Profit − Operating Expenses
4. Net Profit
After accounting for interest income/expense and income taxes:
Net Profit = Operating Profit + Other Income − Interest − Taxes
AI Analysis
Acculyt AI adds an AI Insights panel below the P&L that highlights:
- Expenses that grew significantly vs. the comparison period
- Revenue categories that declined
- Your current net profit margin vs. industry benchmarks
- Recommended actions to improve profitability
Exporting the P&L
Click Export to download as:
- PDF (formatted for sharing with investors or accountants)
- Excel/CSV (for further analysis)
- Direct email to your accountant
You can also schedule automatic monthly P&L reports to be emailed to specified recipients.