> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pluvel.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Profit & Loss Report

> See your revenue, expenses, and net income.

"We're bringing in money, but it feels like there's never anything left." Sound familiar? Revenue doesn't equal profit — you need to see what's actually happening between money coming in and money going out.

The Profit & Loss (P\&L) report — also called an Income Statement — shows exactly that: your revenue, your costs, and what's left over. It answers the simplest question in business: "Did we make money or lose money?"

## Accessing the P\&L

1. Go to **Reports** in the sidebar
2. Click **Profit & Loss**
3. Select your date range

## Report structure

The P\&L follows a standard structure:

```
Revenue
  - Product Sales
  - Service Revenue
  - Other Income
= Gross Revenue

Less: Cost of Goods Sold (COGS)
  - Materials
  - Direct Labor
= Gross Profit

Less: Operating Expenses
  - Payroll
  - Rent
  - Utilities
  - Marketing
  - Software
  - Insurance
  - Professional Services
= Operating Income (EBIT)

Less: Other Expenses
  - Interest Expense
  - Depreciation
= Net Income (Profit/Loss)
```

## Key metrics

| Metric           | Formula                        | What It Tells You           |
| ---------------- | ------------------------------ | --------------------------- |
| Gross Revenue    | Sum of all income              | Total money earned          |
| Gross Profit     | Revenue - COGS                 | Profit before overhead      |
| Gross Margin     | Gross Profit / Revenue         | Efficiency of production    |
| Operating Income | Gross Profit - OpEx            | Profit from core operations |
| Net Income       | Total Revenue - Total Expenses | Bottom line                 |
| Net Margin       | Net Income / Revenue           | Overall profitability       |

## Date ranges

Select from preset or custom ranges:

| Preset       | Period                     |
| ------------ | -------------------------- |
| This Month   | Current month to date      |
| Last Month   | Previous full month        |
| This Quarter | Current quarter to date    |
| Last Quarter | Previous full quarter      |
| This Year    | January 1 to today         |
| Last Year    | Previous full year         |
| Custom       | Any date range you specify |

## Comparison views

Compare performance across periods:

### Year-over-Year

1. Select a date range
2. Click **Compare**
3. Choose "Previous Year"
4. See side-by-side columns with variance

### Month-over-Month

Compare any two months to see:

* Revenue growth/decline
* Expense changes
* Profit improvement

### Budget vs. Actual

If you've set a budget:

1. Click **Compare → Budget**
2. See actual vs. budgeted amounts
3. Variance shown as \$ and %

## Drill-down

Click any line item to see details:

### Account detail

Clicking "Software Expenses: \$2,450" shows:

* Individual transactions
* Dates and vendors
* Running balance

### Transaction list

From the detail view:

* Click any transaction to see the journal entry
* Jump to the invoice, bill, or bank transaction

## Export options

| Format        | Use Case                                  |
| ------------- | ----------------------------------------- |
| PDF           | Share with stakeholders, attach to emails |
| Excel         | Further analysis, custom formatting       |
| CSV           | Import into other systems                 |
| Google Sheets | Collaborative editing                     |

### Scheduled exports

Set up automatic exports:

1. Click **Schedule**
2. Choose frequency (weekly, monthly)
3. Select format
4. Enter email recipients
5. Reports are sent automatically

## Cash vs. Accrual

Toggle between accounting methods:

| Method  | Revenue Recognized | Expenses Recognized |
| ------- | ------------------ | ------------------- |
| Cash    | When received      | When paid           |
| Accrual | When earned        | When incurred       |

<Info>
  Your default method is set in **Settings → Accounting**. The toggle lets you see both views without changing your books.
</Info>

### Why it matters

Cash basis may show:

* Lower revenue (unpaid invoices excluded)
* Lower expenses (unpaid bills excluded)

Accrual basis shows:

* True earned revenue
* True incurred expenses
* More accurate matching

## Categorization impact

The P\&L is only as accurate as your categorization:

* **Uncategorized transactions** appear as "Other Income" or "Other Expenses"
* Review and categorize regularly for accurate reporting
* Use bank rules to automate recurring categorization

Go to **Banking → Transactions** to categorize.

## Common questions

<AccordionGroup>
  <Accordion title="Why doesn't my P&L match my bank balance?">
    The P\&L shows income and expenses, not cash flow. Differences include:

    * Unpaid invoices (accrual basis)
    * Accounts payable (bills not yet paid)
    * Loan principal (not an expense)
    * Owner draws (not an expense)
    * Asset purchases (capitalized, not expensed)
  </Accordion>

  <Accordion title="What's the difference between COGS and Operating Expenses?">
    COGS (Cost of Goods Sold) are costs directly tied to producing what you sell—materials, direct labor. Operating expenses are overhead—rent, utilities, marketing. COGS varies with sales volume; OpEx is more fixed.
  </Accordion>

  <Accordion title="How do I add budget figures?">
    Go to **Settings → Accounting → Budgets**. Enter monthly budget amounts per category. Then use Compare → Budget on reports.
  </Accordion>

  <Accordion title="Why are some categories missing?">
    Only categories with transactions in the selected period appear. To see all categories (including zeros), click **Show All Accounts**.
  </Accordion>
</AccordionGroup>

<Card title="Balance Sheet" icon="arrow-right" href="/features/reports/balance-sheet">
  See your assets, liabilities, and equity.
</Card>