Income and Expenditure report versus Profit and Loss report

Income and Expenditure report versus Profit and Loss report

Income and Expenditure Report Versus Profit and Loss Report


1. Income and Expenditure Report

A cash-flow Income and Expenditure report shows exactly how much money your business has received (income) and spent (expenses) over a certain period of time ie. it reflects your 'liquidity'. It is an excellent management and planning tool used to determine the short-term viability and liquidity of a business, specifically how well it is positioned to pay bills and suppliers
This report can be found by clicking
  1. Reports
  2. Cashbook Summaries
  3. Income and Expenditure menu option

2. Profit and Loss Report

A Profit and Loss report shows a businesses
  • total income
  • total expenses, including non-cash journal entries such as depreciation
  • profit or loss
Unlike the cash-flow reports, the P & L report takes into account changes in the value of trading stock. It gives a more accurate measure of profitability over a given period. A P & L report is used to determine the financial performance of a company.

This report can be found by clicking
For Cashbook Connect:
  • Reports
  • Financials
  • Profit and Loss menu option
For Cashbook Platinum:
  • Reports
  • Management Financials
  • Profit & Loss menu option



Article ID 1256