How to Run a Profit and Loss Report in QuickBooks (And Why You Should)
For small business owners, understanding your finances isn't just about tracking income—it's about making informed decisions. One of the easiest and most effective ways to do this is by regularly reviewing your Profit and Loss (P&L) report in QuickBooks Online.
Whether you're new to bookkeeping or trying to stay ahead of tax season, here’s how you can use this simple tool to gain powerful insights into your business performance.
Step-by-Step: How to Run a Profit and Loss Report
Log into QuickBooks Online.
Go to the Reports tab in the left menu.
Select Profit and Loss under the "Standard" reports.
Customize the date range to the period you want to review (e.g., last month, this quarter, year-to-date).
Click Run Report.
That’s it! In just a few clicks, you’ll see your income, expenses, and net profit (or loss) during that period.
Why It Matters
✅ Track Revenue and Expenses – Spot which months or services are most profitable.
✅ Budget Smarter – Use trends to forecast your cash flow and plan spending.
✅ Catch Errors – Misclassifications or missing entries will stand out.
✅ Prepare for Taxes – No more scrambling in April.
Best Practices
Check Monthly: Run the report monthly to stay on top of your finances.
Compare Periods: Look at current vs. previous quarters to identify trends.
Reconcile First: Make sure your accounts are reconciled before reviewing.
Review with an Expert: A bookkeeper or advisor can help you interpret the data for smarter decisions.
Common Mistakes to Avoid
🚫 Ignoring the report until tax season
🚫 Not customizing the date range
🚫 Missing recurring small expenses
🚫 Running reports with unreconciled accounts
FAQ
Q: What’s the difference between a Profit & Loss and a Balance Sheet?
A: P&L shows performance over time (income vs. expenses). Balance Sheet shows a snapshot of your business's financial health at a given date.
Q: Can I run this on the QuickBooks app?
A: Yes, most standard reports including P&L are available on mobile.
Q: How do I fix errors in the report?
A: Review your categorized transactions, check for missing data, and reconcile your accounts.
Q: Do I need an accountant for this?
A: You can run it yourself, but a bookkeeper can help you analyze and take action on the numbers.
📞 Need help understanding or organizing your QuickBooks reports?
Book a free call with Dr. Bryan Raya, QuickBooks ProAdvisor:
👉 https://calendly.com/dbr_bookkeeping/book-a-free-call-with-dbr
Let’s start Doing Business Right.
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