How do I run a profit and loss report in QuickBooks?
In QuickBooks Online, click Reports from the left menu, then search for “Profit and Loss” or find it under Business Overview. Click the report name and it generates with default settings, usually showing the current month or fiscal quarter.
The default report appears quickly but rarely shows what you actually need. Adjust the date range at the top to match what you’re trying to understand. Monthly reports help you spot recent changes. Year-to-date shows cumulative performance. Custom ranges let you isolate specific periods like a busy season or the months after a big change in your business.
Check the accounting method before you trust the numbers. QuickBooks lets you toggle between cash and accrual basis at the top of the report. Cash basis shows income when money hit your account and expenses when you paid them. Accrual basis shows income when you invoiced and expenses when they were billed to you. Most small businesses file taxes on cash basis, but accrual often gives a clearer picture of how operations are actually performing. Pick one method and stick with it when comparing periods or the comparison means nothing.
Click Customize to add comparison columns. Comparing this month to the same month last year reveals seasonal patterns. Comparing to last month shows recent trends. A P&L that says your labor cost is $12,000 doesn’t tell you much. A P&L showing labor jumped from $9,000 to $12,000 compared to last month tells you something changed that needs attention.
If you’ve set up classes or locations in QuickBooks, you can filter the report to see profitability by segment. This only works if transactions were coded correctly throughout the period. A QuickBooks setup that includes class tracking from the start makes this kind of analysis possible down the road.
The report only reflects what’s in your books. Uncategorized transactions show up in strange places or don’t appear at all. Bank feeds that haven’t been reviewed sit in limbo and don’t hit the report. If your accounts aren’t reconciled and transactions aren’t categorized, the P&L won’t match reality and you can’t trust the numbers for decision-making.
Run the report monthly at minimum. Waiting until year end means you’re looking at history you can’t change. Monthly review lets you catch problems while there’s still time to adjust. Some businesses with tight margins or heavy seasonality benefit from weekly reports. A Richmond bookkeeper can help make sure your books are clean enough that the report actually means something when you run it.
Export the report to Excel or PDF if you need to share it with a lender, partner, or accountant. QuickBooks has export buttons at the top of the report. Save versions with consistent naming so you can reference them later without regenerating from scratch.
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