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Profit and Loss Amount XBert
Profit and Loss Amount XBert

For monitoring your business' financial performance and overall profitability.

Jhanav Lakhiani avatar
Written by Jhanav Lakhiani
Updated over a week ago

What is Profit and Loss Amount?

Profit and loss amount refers to the difference between the total revenue and the total expenses incurred by a business during a specific period, usually a financial year. If the revenue exceeds the expenses, it results in a positive profit amount. However, if the expenses exceed the revenue, it leads to a negative amount, known as a loss. The profit and loss amount indicates the financial performance and overall profitability of a business.

What is the difference between Cash and Accrual?

Profit and loss cash refers to the financial statement method of reporting where revenue is recognized when payment is received, and expenses are recorded when they are paid. This method doesn't take into account any outstanding debts or prepaid expenses.

On the other hand, profit and loss accrual refers to the financial statement method that recognizes revenues when earned and expenses when incurred, even if cash is not received or paid out during this period. This takes into account receivables, payables, and prepaid expenses.

Why is Profit and Loss Important?

Monitoring your business's profit and loss is crucial for assessing financial performance, managing cash flow, making informed decisions, and comparing your business's performance over time. It provides valuable insights for strategy, pricing, cost management, and resource allocation, ultimately improving profitability and ensuring the long-term success of your business.

How do I set up these XBerts?

  1. From your CONNECT portal, go to the Automation board and click on the third navigation option, 'User Created Types' on the left-hand side.

  2. Click on either (cash or accrual) 'Profit and Loss Amount Rule Detected' XBert.

  3. Click on +Add to start making your rule.

  4. Here, you can set a name, conditions and actions for the rule you create.

    The conditions you can set for this rule include:

    • Amount

    • Account Code

    • Account Name

    • Account Type

    • Short Month

    • Base Currency

    • Sales Tax Basis

    • Month Count from Now

    Once you set a condition, you must select an operator and value.

    The operators you can set are:

    • greater than

    • greater than or equal to

    • less than

    • less than or equal to

    The value you set is the target our automation will look for depending on the operator you set.

    The actions you can set for your rule are:

    • Set status to - Select the status for the XBert when created.

    • Assign to - User or Role the XBert is assigned to when created.

    • Snooze for - Duration you want the XBert snoozed for when created.

  5. For example, I created a rule to make XBerts for Profit and Loss Amounts above 20,000 AUD.

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