QuickBooks HelpQuickBooksHelpIntuit

Run the Profit and Loss report in QuickBooks

by Intuit•28• Updated 3 weeks ago

Learn what a Profit and Loss report is and how it helps you track your business's financial performance in QuickBooks. We'll show you how to run the report on the web and the QuickBooks mobile app (iOS), create comparisons over time, and explain the key concepts you need to read it correctly.


What is a Profit and Loss report

The Profit and Loss report, also known as an income statement, summarises your business's financial performance over a specific period. It shows your total income and subtracts your total expenses to arrive at your net profit or loss.

This is different from a Balance Sheet report, which provides a snapshot of your assets, liabilities, and equity at a single point in time.


Standard Profit and Loss report

Follow these steps to see your income and expenses for any period you choose.

  1. Follow this link to complete the steps in product Open this link in a new window
  2. Search for and select Profit and Loss.
  3. Select the Report period from the dropdown menu (e.g., This Month, This Quarter).
  4. Select your desired Accounting method (see below for an explanation of Cash vs. Accrual).
  5. Select Run report.

Profit and Loss Comparison report

Use a comparison report to analyse your performance between different time periods.

  1. Follow this link to complete the steps in product Open this link in a new window
  2. Search for and select Profit and Loss Comparison.
  3. Select the Report period you want to analyse (e.g., This Month).
  4. Use the Compare another period options to select how you want to compare the data:
    • Previous period (PP): Compares your chosen period to the one immediately before it.
    • Previous year (PY): Compares your chosen period to the same period in the prior year.
  5. Select how to display the difference from the Show variance dropdown (£ change or % change).
  6. Select Run report.

Understanding key report concepts

The accounting method determines when income and expenses are recorded on your report. You can switch between them directly on the report page.

Cash Basis: Income is reported when you receive the money, and expenses are reported when you pay them. This method focuses on the cash flow in and out of your bank account.

Accrual Basis: Income is reported when you earn it (i.e., when you create an invoice), and expenses are reported when you incur them (i.e., when you receive a bill), regardless of when money changes hands. This method provides a more accurate picture of your profitability for the period.

For more, see Choose between cash and accrual accounting methods in QuickBooks.

The Profit and Loss report only shows transactions assigned to income and expense accounts.

It excludes transactions that only affect balance sheet accounts. This is a common reason why you might not see an expected transaction on your Profit and Loss.

For example:

Customer payments: When you receive a payment for an invoice, it affects your Bank account and Accounts Receivable. Both are balance sheet accounts, so the payment itself doesn't appear on the P&L. The invoice is what records the income.

Bill payments: When you pay a supplier bill, it affects your Bank account and Accounts Payable. These are also balance sheet accounts. The bill is what records the expense.


Run a Profit and Loss report on the mobile app (iOS)

You can quickly view your Profit and Loss on the go with the QuickBooks Online mobile app.

  1. From the Menu ☰, select Profit & Loss.
  2. Tap points on the graph to see monthly details.
  3. Select View Report for a detailed breakdown.
  1. From the Menu ☰, select Reports. The P&L report displays by default.
  2. Select the date range to change the reporting period.
  3. Select the bulleted list icon to see the detailed income and expense breakdown.
QuickBooks Online EssentialsQuickBooks Online PlusQuickBooks Online Simple Start