Profit and Loss - Cash Basis report: options and information

The Profit and Loss report, also known as the income statement, is derived from all accounts that you have classified as income, cost of goods sold, or expense types. You can use this report to determine the operating performance of your business over a period of time.

Note: This is the cash basis version of this report. For the accrual basis version, see the link under Related topics.

In addition to demonstrating success to outside financing sources, such as banks or lenders, you can use detail from a Profit and Loss report to determine the cash flow that is available to finance growth or repay debt. You can compare the data to previous periods in dollar or percentage terms to track trends in the business, and you can find unexpected expenditures.

Note: It is important to run this report monthly, within ten days after the end of a period. By running the report promptly, you can take corrective measures if the report indicates negative business trends.

Open the report

  • On the Reports menu, point to Cash Basis, and then click Profit and Loss.

Report categories

A Profit and Loss report is commonly grouped by the following categories.




Displays the total amount of revenues generated by the business. Some businesses differentiate between gross sales and net sales to account for merchandise returns and discounts.

Cost of Goods Sold

Displays the costs directly associated with earning the business revenue. Cost of Goods Sold can include purchases for suppliers, manufacturing costs, or costs of providing a service. Cost of goods sold is also known as cost of sales.

Gross Profit

Displays the difference between sales revenues and cost of sales. Gross Profit represents how the core business is performing. It can also be viewed as a percentage of sales revenue. Gross profit is also known as gross margin.


Displays the daily expenses incurred in the operation of the business. Some companies divide these expenses into those that can fluctuate with the size of the company, such as advertising, salaries, or travel and entertainment, and others that remain relatively stable, such as insurance, rent, depreciation, or utilities. Operating expenses are also known as general and administrative expenses.

Other Income/ Expense

Displays revenues or expenses that do not fit in the normal flow of your business. Examples are interest income and expense.

Net Income

Displays the amount of income earned by the business prior to taxes. It is calculated by subtracting operating expenses from the gross profit.

For detailed information about how to view individual transaction details, or modify, display, save, print, or export the report data, see Working with reports. For detailed information about how to filter report data, see Filter reports.

Change report basis or date range

To change the report basis for this report, do the following:

  • On the toolbar, click the arrow next to Report Basis, and then select Cash or Accrual.

To change the date range for this report, do the following:

  • On the toolbar, click the arrow next to Date Range, From, or To.

Related topics

Profit and Loss report: options and information

About cash basis and accrual basis accounting

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