Glossary
Profit and loss
Definition
The profit and loss report adds up income and expenses over a period and shows the result. A positive result is a profit, and a negative result is a loss. It does not show when cash comes in or goes out.
Example. Sales of €8,000 less expenses of €5,500 in March gives a profit of €2,500 for March, even if €3,000 of the sales are still unpaid.
Why it matters for your company
It answers whether the company made money in the period. The profit it shows is the basis for what you may pay out as dividends after tax.
Where you see it in Sapita
In the reports section, as the profit and loss report for any period you choose.