---
title: Profit and Loss
description: Revenue, cost of goods sold, expenses, and net income for a period.
url: "https://theasst.com/docs/profit-and-loss/"
updated: "2026-10-06"
category: Reports
---

# Profit and Loss

The Profit & Loss report (Income Statement) shows Revenue, Cost of Goods Sold, Gross Profit, Expenses, and Net Income for a period -- the other core financial statement alongside the [Balance Sheet](https://theasst.com/docs/balance-sheet/).

![Profit and Loss report with REVENUE, COST OF GOODS SOLD, GROSS PROFIT, EXPENSES, OPERATING INCOME, and NET INCOME sections](https://theasst.com/wp-content/uploads/2026/09/incomestatement.webp)

## Options

Pick a **Fiscal Year** and **Period**, or a custom **Start/End Date**. Choose **Accrual** or **Cash** basis. **Show zero-balance accounts** includes accounts with nothing posted, and **Include year-end closing entries** folds in [Year-End Closing](https://theasst.com/docs/fiscal-year-and-year-end-closing/) entries.

## Reading It

Revenue, minus **Cost of Goods Sold**, is **Gross Profit**. Subtract Expenses (and add or subtract Other Income and Other Expense) to get **Net Income**. Which accounts fall where depends on each account’s type in [G/L Accounts](https://theasst.com/docs/g-l-accounts/).

## More Options

- **Basis** — *Accrual* counts income when invoiced and expenses when billed; *Cash* counts them when money is received or paid.
- **Site** — All Sites, Single Site, or Custom (tick the sites to include).
- **Include year-end closing entries** — normally leave this off for a closed year, otherwise the closing entry zeroes out the very income and expenses you want to see.

## Drilling Down and Exporting

Click any account line to see the [General Ledger](https://theasst.com/docs/general-ledger/) activity behind it. Use **Export PDF** or **Export XLSX** to save a copy; the sidebar also jumps to the [Balance Sheet](https://theasst.com/docs/balance-sheet/).