AGRIMASTER HELP NOTE Profit and Loss Report Aim of this report The aim of the Profit & Loss reports it to give you a clear understanding of the financial performance of you business. Is the business trading at a Profit or Loss? The report also answers the question What Cash Surplus does your business have after other Income and Expenditure? What does this report tell you? 1. The Net profit or loss of your business a. Sales Cost of Sales = Gross Profit/Loss b. Gross Profit Overheads = Net Profit/Loss 2. The Cash surplus after OTHER income and expenditure a. Net Profit/Loss (Other Income Other Expenditure) = Cash Surplus 3. The Gross profit or loss of each profit centre/enterprise within your business 4. How you preformed against the same time 12 months ago 5. Actual Performance against Budgeted performance What does this report NOT include? Change in Value of Stock on Hand Depreciation Copyright 2011 Mastergroup (Aust.) Pty Ltd All rights reserved. No part of this Help Note may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, electrostatic, magnetic tape, mechanical, photocopying, recording or otherwise, without permission in writing from the author. Page 1 of 6
Agrimaster Help Note Profit and Loss report Now what?! The Profit and loss is a keystone report in the Analysis part of the Plan, Do, Analysis, Adjust cycle. It helps you feel the pulse of your business so that you are never flat footed. For more information on the; Plan, Do, Analysis, Adjust cycle you might like to read our reference guide at www.agrimaster.com.au Setting up the report Firstly in order to make the profit and loss report work you will need to set up all your codes with an appropriate code Type. Income codes can be one of Sales, other income, Capital or GST Explanation of Income code types Sales Any income from sales of goods or services, income from anything you sell e.g. your products or services. Other Income Any other income (e.g. not from sales) insurance rebates, Government rebates Capital Capital injection into your business, such as loans in, Partner capital, Directors capital GST- any codes that are for GST Expense codes can be one of Cost of sales (variable cost) Overheads (Fixed costs) Capital and Development, Interest, Tax, Private and GST. 2011 Mastergroup (Aust.) Pty Ltd Page 2 of 6
Explanation of Expense code types Cost of sales (variable costs) Agrimaster Help Note Profit and Loss report Payments directly associated with sales, e.g. the purchase of products, raw materials, goods, services that are sales related. These costs will vary based on sales activity, so if it changes based on if you have more or less sales it falls in this category as a rule. Overheads Operating costs for your business, they usually don t vary based on your business activity for example rent, power, wages, and phones. Most office outgoings fall into this category including accountancy fees, legal fees etcetera. Interest All interest on business related loans such as car loans, business loans, building loans, plant loans GST All expense codes that are related to GST 2011 Mastergroup (Aust.) Pty Ltd Page 3 of 6
How to setup your code types Agrimaster Help Note Profit and Loss report 1. Start at the HOME PAGE 2. Click on SETUP 3. Click on CODES 4. Press to switch to EDITING mode. 5. Click tick, press F10 to save data 1) Make sure you are in Editing mode Click Green tick after selecting your code type 2)Select code type here 2011 Mastergroup (Aust.) Pty Ltd Page 4 of 6
Agrimaster Help Note Profit and Loss report How to create the report 1. Click on Cashbook 2. Click on Reports 3. Click on accounting reports 4. Click on Profit and Loss 5. Set up the Report options as you need them Click here to view the report Select Report Type Select Dates Select Banks Select report Basis 6. Your report will be displayed based on the settings you have requested 2011 Mastergroup (Aust.) Pty Ltd Page 5 of 6
Agrimaster Help Note Profit and Loss report Enterprise reporting If you would like to report a Enterprise s contribution to gross profit all sales and costs of sales must be allocated to the correct Enterprise when coding them in transactions, invoices etcetera If you would like to create individual Profit and Loss reports for each Enterprise you must code ALL transactions, invoices, EFTS etcetera (both income and expenses) to a enterprise including attributable overheads (eg phones based on number of people in each Enterprise) Should you require any assistance in configuring this report please call Businessmaster Support on 1300 786 516 2011 Mastergroup (Aust.) Pty Ltd Page 6 of 6