This report calculates percentages of sales for all P&L activity for the selected month(s). These percentages are compared to what you budgeted for the selected month(s) and to what the percentages were for the same month(s) of last year.
This report can be displayed using the cash basis and accrual basis accounting methods. Click the Customize button in the Index to Reports window to display the Report Customization window. In the Report Basis field, select Accrual or Cash, then click Display to display your report. Cash basis reports are differentiated from accrual basis reports by the word [Cash] listed after the report name.
Report Tip: This is a very interesting Profit & Loss report because it produces no dollar amounts. This report looks at every income and expense as a percent of total sales. Most industries have guidelines for expenses as a percent of revenue. If your business is significantly over or under the industry norm, it may be a harbinger of trouble to come.
For example, if your administrative expenses are 15% of total sales and your industry average is 5%, you could be at a serious disadvantage. While you're paying for that corporate masseuse, competitors could be spending 10% more than you on sales and marketing, stealing both market share and the future of your company.
If you don't know your industry averages ask your accountant, or contact the editors of the most popular trade magazine for your industry.
To select multiple months, click and drag the month selector in the Report Customization window.