profit and loss reports

A profit and loss report can be generated by QuickBooks Online, MYOB and Xero and is based on the daily transactional data that is entered by the accounts staff.

There are several aspects of the profit and loss report which affect the viability of a business and they include total sales revenue, profit margin and expenses. In a competitive business market these things can be affected by the cost of advertising to compete as well as the profit margin on each product sold or services provided and you can see this play out when big box retailers compete against each other for the sale of commodity products.

Ultimately the profit and loss report is a financial report that allows business owners, managers and advisors understand the profitability of the business. It is also referred to as the Profit and Loss Statement.