The Income Statement, or Profit and Loss Statement, is a financial report detailing the profit or loss of your business by subtracting purchases and expenses from revenues over a financial period (monthly or quarterly). It shows:
Revenues: Income from sales.
Expenses: Costs to generate these sales.
This report helps evaluate profitability, determine if your business is profitable or incurring losses, and analyze financial performance by comparing current performance to previous periods. It also enables data-driven decisions, such as optimizing operations, managing costs, and identifying areas for expense reduction or efficiency improvements.
ℹ️ Rewaa's accounting system automatically updates the Income Statement in real-time as journal entries are recorded, whether automatically (system-generated) or manually. This eliminates the need for manual calculations.
ℹ️ The Income Statement appears in a summarized format when only the Expenses app is installed. To view it in detail, the Accounting app must be installed.
Accessing the Income Statement
Navigate to: Reports > Finance > Income Statement.
Select the desired time period. The data will be displayed for the specified period.
Layout:
Account names appear on the left.
Total balances for each account appear on the right.
Details in the Income Statement
Revenue: Total sales revenue.
Direct Costs: Costs of goods sold (materials, labor, shipping, etc.).
Operating Expenses: Costs related to running the business (salaries, rent, utilities).
Depreciation: Allocated costs of fixed assets over time.
Interest Expenses: Loan or banking fees.
Operating Profit: Revenue minus direct costs and operating expenses.
Net Income: Final profit after deducting all expenses.
Gross Profit: Revenue minus direct costs.
Exporting the Income Statement
You can export the statement as a PDF or Excel file:
Click Export.
Choose the file format: PDF or Excel.
The file will be downloaded to your device.
For PDF, ensure the destination is set to Save as PDF, then click Save.
Printing the Income Statement
Export the report as a PDF File.
Choose your printer in the destination field.
Click Print.
FAQs
1. What types of expenses are included in the Income Statement?
Operating Expenses: Costs related to running your business, such as salaries, rent, and utilities.
Depreciation: The allocated cost of fixed assets over time (e.g., equipment).
Interest: Bank fees or loan charges incurred during the financial period.
Direct Costs (Cost of Goods Sold - COGS): The cost of producing goods, including raw materials, labor, shipping, and packaging.
2. What is the purpose of the "Filter" option next to the date field?
The Filter is used to narrow results by Cost Centers. Steps:
Click Filter.
Select the desired cost center.
Click Apply to view results specific to that cost center.