March 31, 2020

Preparing a P&L (Income Statement)

Small Business
By: Ronald B. Allen

How to Prepare a P&L

Also known as an Income Statement

Overview

The income statement is referred to as the Profit and Loss Statement in QBO. The P&L is used to determine the financial health of the company. This statement is used to compare a company’s revenue with the expense and calculate a profit, or loss. The income statement is calculated using a specified period of time to show the company’s income and expenses.

Revenue

This statement will include all of the income that your company received in the given time period. This includes:

  • Revenue from the sale of goods or services
  • Revenue from interest or rent received.
  • Gains on sales of assets

Expenses

The P&L will include all of the expenses that your company incurred in the specified time period. Expenses are separated into numerous categories to help you see how your money is spent. Categories include:

  • Operating expenses: cost of goods sold, payroll, overhead costs and advertising.
  • Nonoperating expenses: interest expense
  • Losses on the sale of assets.

Creating the Report

1.Login to QBO

2.Go to the "Reports" tab in QBO

3.Select "Profit and Loss"

  • This report will automatically be generated for the previous month.

4.Choose a time period under the "Report Period" drop down list

  • The time period can be monthly, quarterly, yearly, or a custom date range to suit your needs.

5.Click "Run Report"

This report can also be customized further using the green "Customize" button in the top right portion of the screen.

Contact us at Exigo for help customizing your reports.

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