Profit & Loss

Understand your P&L statement, track margins, and set profitability targets across your stores.

The Profit & Loss (P&L) statement shows you exactly where your money comes from and where it goes. It is automatically generated from your sales, cost of goods sold, payroll, and operating expenses — giving you a clear picture of your business’s profitability at a glance.

P&L statement sections

The P&L statement is organised into the following sections, each building on the previous one:

• Revenue — Starts with gross sales, then subtracts discounts and refunds to arrive at net revenue. This is the total income your business earned during the period.
• Cost of Goods Sold (COGS) — The direct costs of producing or purchasing the products you sold, including raw materials and production labour.
• Gross Profit — Net revenue minus COGS. This shows how much you earn after covering the direct cost of your products.
• Payroll Costs — Wages, statutory contributions, and variable compensation (bonuses, overtime, commissions).
• Operating Expenses — Facilities, technology, and administrative costs required to run the business day to day.
• Non-operating items — Income or expenses outside normal operations, such as interest earned, loan interest paid, or one-off gains and losses.
• Net Profit — The bottom line — what remains after all costs and expenses are deducted from revenue.

Margin calculations

Two key margin percentages are calculated automatically on your P&L:

• Gross margin percentage — Gross profit divided by net revenue, expressed as a percentage. This shows what proportion of each sale remains after covering direct costs.
• Net margin percentage — Net profit divided by net revenue. This shows the overall profitability of your business after all expenses.

Profitability targets

You can set profitability targets per store to measure actual performance against your goals. Targets can be set for gross margin, net margin, or absolute net profit. Once configured, the P&L view highlights whether each store is above or below target, making it easy to spot underperforming locations.

To set targets, navigate to Finance → Finance Settings and configure the target values for each store.

Period selection

You can view your P&L for any time period:

• Daily — Useful for high-volume businesses that need to track daily profitability.
• Weekly — Spot week-over-week trends and compare performance across weeks.
• Monthly — The most common view for regular financial reviews.
• Quarterly — Ideal for strategic reviews and board reporting.
• Annual — Full-year view for tax preparation and annual planning.

Month-to-date tracking

The P&L dashboard includes a month-to-date (MTD) indicator that shows your current performance relative to the full month. This helps you understand whether you are on track to meet monthly targets before the month ends.