Profit and Loss

Explore the significance of profit and loss analysis in optimising financial performance and enhancing business profitability.

Marsha Galicia avatar
Written by Marsha Galicia
Updated over a week ago

The Profit and Loss provides a structured analysis of financial performance over specific periods, giving businesses critical insights into profitability trends, expenditure patterns, and overall financial health.

The AI will only look back at 12 months' worth of data.
​Key Properties:

  1. Report Date: The specific date when the report was generated or the period it covers.

  2. Base Currency: The currency used as the base for all financial calculations in the report.

  3. Accounting Method: The method used for accounting, such as cash or accrual basis.

  4. Cost of Goods Sold (COGS): The total cost incurred in producing goods sold by the business during the month.

  5. Total Income: The total revenue generated by the business within the month.

  6. Total Other Income: Income from other sources apart from the main business operations for the month.

  7. Total Operating Expenses: The total expenses incurred in running the business operations for the month.

  8. Gross Profit: The profit calculated after deducting the Cost of Goods Sold (COGS) from the total income for the month.

  9. Net Profit: The profit calculated after all expenses, including operating expenses and Cost of Goods Sold (COGS), are deducted from the total income for the month.

  10. Profit and Loss Accounts: A list of individual accounts that contribute to the overall Profit and Loss statement.

    • Account Name: The name representing the financial account in the report. e.g., "Operational Expenses"

    • Gross Profit and Loss Average 12 Months: The monthly average of gross profit or loss over the past year, indicating longer-term financial trends. e.g., "$100,000"

    • Gross Profit and Loss Average 3 Months: The monthly average of gross profit or loss for the last quarter, highlighting recent financial performance. e.g., "$120,000"

    • Variance Amount: The dollar amount representing the difference between expected and actual figures, identifying discrepancies. e.g., "$2,000 under expected"

    • Variance Percentage: The percentage that illustrates the relative difference between expected outcomes and actual figures. e.g., "5% over projections"

    • Account Code: A numeric or alphanumeric code that categorises the financial account. e.g., "502"

    • Standard Classification Name: The classification type of the account based on standard accounting practices. e.g., "Revenue"

    • Amount: The total amount factored into the profit and loss calculation. e.g., "$5,000"

    • Report Date: The specific date the report was compiled or to which the data pertains. e.g., "September 30, 2023"

The Profit and Loss object simplifies financial performance analysis, offering comprehensive insights into profit margins, expense tracking, and variances, enabling effective financial planning and decision-making.

Example Alerts

Setup an alert for account name containing suspense if it is greater than 0 and it is not the current month.
Alert me when sales drop by 30%.
Let me know when any expense account increases by 20%.​
Detect expense accounts that have a 10% variance month on month.
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