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Profit and loss statement
Assess revenue, expenses and result over a selected period.
The profit and loss statement covers a period. It totals revenue and expenses between two dates and shows the difference as profit or loss.
Step by step
- 1Choose start and end dates for the range you want to assess.
- 2Review sales and other income and compare them with related expenses.
- 3Pay attention to posting and performance dates: an invoice or payment can fall in a different month from the economic performance.
- 4Open unusual figures in the ledger and review their account, date and source.
- 5Compare periods with the same length and meaning and allow for one-off items.
What is on the screen?
- Start and end dates
- Revenue
- Expenses
- Profit or loss
What happens next?
The result is the balance of posted revenue and expenses in the selected period. Result for the fiscal year on the balance sheet is cumulative from the first day of the fiscal year through the as-of date. The two amounts are therefore equal only when the profit and loss statement uses the same start and end dates. Receipts and payments are not automatically revenue and expenses; they often first affect bank, cash, receivables or liabilities.
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Balance sheet
Read assets, liabilities and equity as a financial position on one date.
Read guidance →Reports
Choose a trial balance, balance sheet or profit and loss report from the question you need answered.
Read guidance →Fiscal years
Review the annual result and manage closing, reopening and boundaries of open fiscal years.
Read guidance →