Statement of Profit or Loss

The Statement of Profit or Loss is the second of LedgerBuk’s three financial pillars. It shows how much your business earned and spent over a period of time — and whether you came out ahead or behind.

Purpose

This report answers: “Did we make money this month/quarter/year?”

The idea is simple: Revenue − Expenses = Profit (or Loss)

If your revenue is higher than your expenses, you made a profit. If not, you had a loss. Either way, knowing the numbers helps you take action.

Accessing the Report

1. Navigate to Reports → Profit & Loss
2. Select the date range (annual, quarterly, monthly, or custom)
3. The report generates automatically

Note

The Profit & Loss report is available on all plans — including Starter.

Reading the Report

Revenue (Money Coming In)

Account	Amount
Sales Revenue	KES 180,000
Service Revenue	KES 20,000
Interest Income	KES 500
Total Revenue	KES 200,500

Expenses (Money Going Out)

Account	Amount
Cost of Goods Sold	KES 60,000
Salaries & Wages	KES 40,000
Rent Expense	KES 12,000
Utilities	KES 3,000
Marketing	KES 5,000
Depreciation	KES 2,000
Interest Expense	KES 1,500
Miscellaneous	KES 500
Total Expenses	KES 124,000

The Bottom Line

Total Revenue:          KES 200,500
Total Expenses:         KES 124,000
────────────────────────────────────
Profit for the period:  KES  76,500  ✓ Profit

If expenses exceed revenue, this line will show a loss instead.

Choosing the Right Period

You can view this report for different time frames depending on what you need:

Period	When to use it
Monthly	Keep a regular pulse on how the business is doing
Quarterly	Share with partners or management
Annually	Tax preparation, year-over-year comparisons
Custom	Analyze a specific project, season, or promotion

How It Connects to Other Reports

• Balance Sheet → When you close a period, the profit (or loss) shown here transfers to Retained Earnings on the Balance Sheet
• Cash Flow Statement → The Cash Flow starts with the profit from this report, then adjusts for things that affected profit but didn’t involve actual cash
• Trial Balance → Run this first to ensure your books are balanced before generating the Profit & Loss