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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More Questions
Can a bookkeeper help me catch up on years of messy records?
Yes. Catching up on neglected books is one of the most common reasons small businesses hire a bookkeeper. The process involves reconstructing transactions from bank records, categorizing expenses, and reconciling accounts month by month.
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Virginia employers pay federal FICA and unemployment taxes plus Virginia unemployment insurance. Budget roughly 8% to 10% of wages for the employer portion. Virginia keeps it simpler than many states with no state disability or paid leave taxes.
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Lenders want clean, reconciled financial statements that tell a consistent story. Before applying, reconcile all accounts, prepare accurate P&L and balance sheet statements, and make sure your books match your tax returns.
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The method depends on your business structure. Sole proprietors and most LLCs take owner's draws. S-corp owners must pay themselves a salary through payroll and can take additional distributions.
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The main differences are user limits, bill management, and inventory or project tracking. Most small businesses need Essentials or Plus. Simple Start works for freelancers but runs out of room fast.
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Yes, QuickBooks Payroll handles wages, tax calculations, filings, and direct deposit for most small businesses. Whether it's the right choice depends on your employee count and how much time you want to spend managing it yourself.
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