Income Statement

The income statement is your live profit and loss for any date range — revenue and expenses roll into Gross Profit, Operating Income, and Net Income. Group by month, quarter, or year; expand accounts to see counterparties and drill into transactions.

Key capabilities

P&L for any range, defaulting to the last 12 months, on Accrual books (default) or Cash books via the sidebar switch
Net income and revenue trend strip above the table when the range has two or more period columns
Group by Month, Quarter, or Year to spread amounts into period columns
Section roll-ups: Operating Revenue, Cost of Goods Sold, Operating Expenses, Other Income, Other Expenses
Computed subtotals: Gross Profit (after COGS), Operating Income (after OpEx), and Net Income
Per-section sum row and a per-period column total
Expand-row counterparty breakdown — customers for revenue sections, vendors for expense sections — with entry counts and % of account
Period-over-period variance arrows on each counterparty cell
Click any counterparty amount to drill into the underlying transactions
Recategorize every transaction for a counterparty into another account in one move, after a confirmation that shows the count and dates
Hide Empty Rows toggle (on by default) and a Tag filter for project/department views
Comparative report shortcut to the Report Library for prior-period variance
AI Analysis panel with gross/operating/net margin tiles, severity-ranked insights, and copy-to-clipboard
Excel export of the current view

How it works

Revenue ledgers net against expense ledgers across the period. DayZero inserts the standard subtotals between sections so the statement reads top-to-bottom like a formal P&L.

flowchart TD
  rev["Operating Revenue"] --> gp["Gross Profit (Revenue - COGS)"]
  cogs["Cost of Goods Sold"] --> gp
  gp --> oi["Operating Income (Gross Profit - OpEx)"]
  opex["Operating Expenses"] --> oi
  oi --> ni["Net Income"]
  other["Other Income / Other Expenses"] --> ni

How to use it

Open Income Statement and set a Date Range with preset pills (This Month, Last Month, This Quarter, Last Quarter, YTD, Last Year) or custom dates. Check the basis badge at the top: switch Accrual books or Cash books in the sidebar.
Choose Group by Month, Quarter, or Year to break amounts into period columns; click Refresh to reload.
Hide Empty Rows is on by default; untick it to see accounts with no activity.
Optionally pick a Tag to scope the statement to tagged transactions (e.g. a project or department).
Expand an account row to load its counterparty breakdown — each shows transaction count and % of the account total, with up/down arrows flagging period swings.
Click a counterparty's period amount to open the transaction drill-down; use the recategorize control to move all of that counterparty's entries to another account (every date, including closed periods, not only the range on screen).
Open AI Analysis for a plain-English summary with margin tiles, then click Excel to export.

Pro tips

Group by Month during close to watch how each account trends across the period and catch anomalies early.
Margins (gross/operating/net) appear in the AI panel as % of revenue — a fast read on profitability without manual math.
Use tag filtering when you track projects, locations, or departments with tags instead of separate sub-accounts.
Variance arrows on counterparty rows are relative to the previous column — handy for spotting a vendor whose spend just jumped.
Recategorizing from the breakdown fixes the whole history for a counterparty at once, which is faster than editing transactions one by one.
Copy the AI analysis straight into a client-facing email or memo.

In-depth guide

Report structure and line items

The statement is organized into sections, each listing its ledger accounts with a Total column and one column per period. A bold sum row closes each section, and computed subtotals are inserted at the right points.

Section	Rolls into
Operating Revenue	Gross Profit, then down the page
Cost of Goods Sold	Subtracted to give Gross Profit
Operating Expenses	Subtracted from Gross Profit to give Operating Income
Other Income	Added after Operating Income
Other Expenses	Subtracted to give Net Income

Subtotal	Formula	When shown
Gross Profit	Revenue − COGS	Only when a COGS section exists
Operating Income	Gross Profit − Operating Expenses	After the Operating Expenses section
Net Income	Operating Income + Other Income − Other Expenses	At the bottom

How figures are computed

All amounts come from posted line entries in the double-entry ledger. On Accrual books revenue and expenses land when invoiced, billed, or incurred, not when cash moves.
On Cash books invoice revenue and bill expense land when paid. A pill beside the date range shows which basis you are viewing, an Accrual → Cash bridge card walks from accrual to cash net income, and View unapplied payments lists receipts and payments not matched to a document.
Values are precise to the cent; column totals sum every account in the section for that period. See also the Cash Flow statement for actual cash movement.

Counterparty breakdown and drill-down

Expanding an account fetches a counterparty-by-period matrix.
Labels — revenue and income sections label counterparties as Customers; all others as Vendors.
Each row shows the counterparty's total, an entry-count badge, its percentage of the account, and trend arrows comparing each period to the one before.
Clicking a non-zero amount opens the transaction drill-down scoped to that account, counterparty, and period.

Recategorization

From a counterparty row you can move every transaction for that counterparty out of the current account into another category.
Transactions with a linked bank transaction are re-categorized in bulk; standalone line entries are reassigned directly.
The statement refreshes so the move is reflected immediately.

Comparison periods and exports

The live page has no side-by-side prior-period column — for formal variance, common-size (% of revenue), and year-over-year comparisons, use Comparative report or run Comparative Income Statement or Income Statement by Period from the Report Library (these need the CFO Advisory Suite add-on, unlocked during your trial).
The Excel button here exports the rows, sections, and period columns currently on screen; cash-basis exports are labeled as such.