Read your profit and loss

The profit and loss lists your income and your expenses over the range you pick, each section with its own total, and ends with net income. It reads your books, so it can differ from the Profit report, which reads your marketplace orders.

The profit and loss shows your income less your expenses over a range, from your books. Cost of goods sold is not posted yet, so net income is before it.

Before you start

• Set up your chart of accounts

Steps

1. Open Profit and loss under Accounting and pick the date range.

   Open in the app

2. Choose Accrual to count marketplace sales and fees on the day they happened, or Cash to count them on the payout day. Everything else counts on its own date under both.

3. Read income, then expenses, each with its total. The last line is net income before cost of goods sold.

4. Compare with the previous period or the same period last year from the comparison menu.

Check it worked

Net income equals total income less total expenses. A settlement paid out early in a month counts its sales and fees in the previous month on Accrual and in the payout month on Cash.