Lesson 2 of 8 · 3 min

Profit and loss

What you earned, less what it cost you, for any dates. And why profit isn't the money in the bank.

  1. Profit and loss answers one question: did you make money? Your income, less the cost of sales (what the stock you sold cost you, and any stock written off), is gross profit; less your expenses, it's your net profit.

  2. Reports → Profit and loss

    Reports, then Profit and loss. Pick its dates (this month, this financial year, last quarter…) and switch on Compare with the period before to see every line beside the same stretch before it. Only what's posted counts: drafts and voided documents never show. Print it, or Download CSV for your accountant.
  3. Profit isn't the money in the bank. An invoice is income the day it's issued, paid or not; rice you buy is a cost only when it's sold, not when the bill comes. So you can make a profit and still be short of cash: the cash flow report shows the money itself.

Try it

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Open Profit and loss

Quick check

One quick question. Pick an answer and Leo will tell you how you did.

1. You issue an invoice on 30 October; the customer pays on 10 November. Which month's profit is it in?

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