How to interpret the P&L report

What is the P&L report?

P&L stands for profit and loss. It is a summary of all revenue and expenses over a period, showing whether you made a profit or a loss.

How to open it

1. Go to Reports in the menu.

2. Select the period you want (month, quarter, year).

3. The report is generated automatically.

What each number means

Total revenue — everything that came in (bookings, other income)

Total expenses — everything that went out (maintenance, salaries, bills)

Net result — revenue minus expenses, which is your real profit

Accrual vs. cash: why the same month shows different numbers

At the top of Reports there is the Accrual / Cash selector. Both look at the same entries and answer different questions:

Accrual — *what happened in the month.* Revenue counts by the nights of the stay (each night on the day it happens) and by the date of other income; expenses count by the entry date, paid or not. It is the regime of results: it tells whether the month made a profit.

Cash — *what came into and went out of the bank in the month.* Revenue and expenses count by the payment date. An August expense paid in September belongs to August on accrual and to September on cash; a paid installment lands in the month it was paid, for the amount paid. It is the regime of money: it tells what is left in the account.

Neither is wrong when they differ — and they almost always do. Use accrual to evaluate the business and cash to follow the money.

Three rules hold in both regimes:

The channel commission (Airbnb, Booking.com…) entered on the booking is an automatic expense under Expenses › Channel commissions on accrual. On cash it is never an outflow — the channel withholds it before paying out — and cash revenue only shows net of it when you record the OTA payout at the gross amount. See Airbnb and other channel commissions in Transactions and on the income statement.

Profit distribution to partners never enters the income statement, in either regime: it is not an expense. It only shows in the cash cards of Transactions. See Profit distribution to partners.

Cash revenue on the report is the same number as the "Amount received" card in Transactions, and cash expenses are "Amount paid" — month by month. If "Amount received" changed, read Amount received, Amount paid and Net cash movement.

Practical tip

Compare the report month by month. If expenses are growing faster than revenue, it is time to review costs or raise prices.

Common mistakes

Not recording every expense — the report comes out wrong and you believe you are making more than you are

Confusing revenue with profit — revenue is what came in; profit is what is left after paying everything

Suggested use

Export the annual report and take it to your accountant. They will need those figures for tax filing.