Profit & Loss
Tip
Using your Income and
Expense Statement to analyze your net profit.
The function of the Income and
Expense Statement is to report on:
Sales - Cost of Goods Sold =
Gross Profit - Expenses = Net Profit
On the Reports menu, click Daily Book > Income and Expense. In the Report Type
box, select one of the three different layouts:
CDB Classic displays the report in a format which has been used for several versions of the
Computerized Daily Book.
Standard displays the report in a format new to CDBWin and may be considered more of a
standard accounting format than the CDB Classic selection.
Comparative displays the report in a format which allows you to compare one selected date
range against another selected date range.
Record all your activity accurately into the system in order for the Income and Expense Statement to
represent an accurate Profit/Loss amount for all of the activity in your
business. For example, a common mistake is to not book an invoice which
does not contain items which are inventoried and sold such as landscape maintenance.
Such transactions would not be reflected on the report as the item would not be part
of any of the elements used to calculate your Net Profit/Loss. The proper method would
be to record your landscaping invoice as an expense to an account such as Maintenance and
then the activity would be included in the report.
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