Steps
- Open Accounts → Profit & Loss. It runs from the start of the financial year to today; change the dates and click Filter.
- Revenue (Sales) minus Cost of Goods Sold gives Gross Profit. Other Income and Indirect Expenses then give Net Profit or Net Loss. Amounts are without GST.
- Open Accounts → Day Book for every entry in your books this month: date, account, narration, debit and credit.
- Use the arrows beside the month to move back or forward, or set From and To and click Apply. Excel downloads the list.
- Open Accounts → Balance Sheet: Assets against Liabilities & Equity as on a date. Change As on Date and click Show.
- The note should read Balance Sheet is balanced. If it reads Balance Sheet has a difference — investigate., have your accountant check the entries.
Good to know
If the page shows This is not your profit yet, your purchase invoices carry no cost price or no expenses are recorded. The headline then reads Sales, before costs — that figure is your sales, not your profit.
Bills and the payments you record reach your books on their own. For anything else — bank charges, money you put in — use Accounts → Quick Entry.
Dashboard sales include GST; Profit & Loss does not, so the two figures differ.
Words used
| Word | Meaning |
|---|---|
| Cost of Goods Sold | What the goods you sold cost you, taken from the purchase side of your books. |
| Gross Profit | Revenue (Sales) minus Cost of Goods Sold, before rent, salaries and other running costs. |
| Indirect Expenses | Running costs that are not the cost of goods: rent, salaries, electricity, bank charges. |
| Cash Book | Cash in and out for the period, with debit and credit totals. |
| Bank Book | Money in and out of your bank for the period, with debit and credit totals. |
| General Ledger | Every entry of one account you pick, with a running balance. |
| Trial Balance | Each account's opening, debit, credit and closing balance, to check the books agree. |
| Profit & Loss (Current Year) | The row under Equity on the Balance Sheet carrying your profit or loss up to the As on Date. |