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      How to Run a P&L Report in QuickBooks Online

      This training guide provides instructions on generating and analyzing a Profit and Loss (P&L) report in QuickBooks Online.

       

      Training Guide: Running a P&L Report in QuickBooks Online


      Objective:
      This guide instructs users on generating a Profit and Loss (P&L) report, also known as an income statement, in QuickBooks Online.

      Tools Required:
      Access to QuickBooks Online with a company account.

      Procedure:

      1. Accessing the P&L Report:

      • Start by logging into QuickBooks Online. Navigate to the 'Reports' section. In QuickBooks, the P&L report is usually favorited automatically, so it should be easily accessible.
      2. Understanding the P&L Report:
      • The P&L report shows your business's financial performance, including revenue, expenses, and net profit. It's a crucial report for business owners to review regularly.

      3. Running the Report:
      • Click on the 'Profit and Loss' report.
      • From here you can view the report by month, by year, by quarter, etc.
      • You can also break down a yearly view into months. See the below video example:

      4. Analyzing Sales Categories:
      • The report will display various sales categories set up for your business. For example, if you're an interior designer, you might see earnings categorized under 'Design Fees'.

      5. Income and Cost of Goods Sold (COGS):
      • At the top of the report, you'll find 'Income'. Below that, 'Cost of Goods Sold' will be listed, including payroll, materials, furniture, and other products bought and sold.

      6. Reviewing General Expenses:
      • General expenses, which are the costs incurred to run your business, are listed after COGS.


      7. Understanding Profit:

      • The report will show your total income, COGS, and general expenses. It will calculate your gross profit and net operating income (or net profit), your earnings after all expenses.
      8. Advanced Analysis - Percentages:
      • For a more detailed analysis, use the 'Compare to another period' feature, if available in your QuickBooks version. Select 'Percentage of Income' and run the report to see a breakdown of where your money comes from and how it's being spent.
      Conclusion:
      This guide provides a basic overview of how to pull a P&L report in QuickBooks Online. It's a fundamental skill for business owners to understand their financial performance. For more detailed analysis, exploring the percentage breakdowns can offer deeper insights into your business's financial health.