How to View the Income Statement and Compare Performance Across Periods

Learn about the income statement (profit and loss statement), its benefits, how to read it, how to compare performance across different periods, and how to export it as a PDF or Excel file.

The Income Statement is a financial statement that shows the results of a business's operations over a specific period by presenting revenues, costs, and expenses, leading to net profit or loss.

ℹ️ Note: The income statement appears in a summarized form when only the expenses application is installed. To view it in detail, install the accounting application.

#Benefits of the Income Statement

1. It clarifies revenues, costs, and expenses.

2. It shows whether your business is profitable or operating at a loss.

3. It helps you assess profitability and compare financial performance with previous periods to make informed decisions.

ℹ️ Note: The Rewaa accounting system updates the income statement continuously when journal entries are recorded, whether automated or manual, so you do not need to perform calculations or use formulas to prepare the statement.

#Accessing the Income Statement

1. Go to Reports > Finance > Income Statement.

2. Click on the report to view details.

3. Select the time period.

4. Choose the location.

5. The data is displayed based on the selected options.

#Filtering the Income Statement by Cost Center

1. Click on "Filters."

2. Select the cost center.

3. Click on "Apply."

4. The results appear according to the specified cost center.

ℹ️ If you have not added cost centers, a window will appear (No cost centers added). To learn how to add a cost center, click here.

#Comparing the Income Statement Across Different Periods

💡Comparing the income statement allows you to view financial performance across several consecutive periods side by side instead of viewing only one period. This feature helps you track changes in revenues, expenses, and net income over time more clearly.

Example: If you want to know how your business's performance has changed over the last three months, you can compare the current month with the previous two months, and the results will appear in a single table for easy review.

#Steps to Compare the Income Statement

1. Click on "Filters."

2. Select the date and location.

3. Click on "Compared to" and choose the comparison period:

   • Previous month.

   • Previous quarter.

   • Previous year.

4. Click on "Period" and specify the number of consecutive periods you want to compare, up to a maximum of four periods.

5. Click on "Apply."

Each period appears in a separate column, allowing you to compare income statement items between the specified periods.

#How to Read the Income Statement

• The statement starts with revenues, then direct costs and operating expenses.

• The account name appears on the left side of the statement, and its balance on the right side.

• Sub-accounts are displayed under the main accounts according to their order in the chart of accounts.

• The total balance appears below each group of accounts.

• The statement also shows the following totals:

  • Gross Profit.

  • Operating Profit.

  • Net Income.

ℹ️ Total rows appear in gray.

ℹ️ If the number is in parentheses, it means the balance is negative (debit).

#How to Calculate Profits and Net Income

• Gross Profit = Total Revenue – Total Direct Cost.

• Operating Profit = Gross Profit – Total Operating Expenses.

• Net Income = Total Revenue – (Total Costs, Expenses, and Taxes).

#Exporting the Income Statement

1. Click on "Export."

2. Choose the file format: Excel File or PDF File.

3. The file is downloaded to your device.

ℹ️ When comparison is enabled, the file includes all periods displayed in the income statement table.

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#Frequently Asked Questions

1. What types of expenses are included in the income statement?
   • Operating expenses, such as salaries, rent, and utility bills.
   • Depreciation expenses related to equipment and fixed assets.
   • Interest expenses, such as bank fees.
   • Direct costs (cost of goods sold), such as raw materials and labor costs.

2. What is the benefit of the filter option next to the date?
   It is used to specify the date, location, and cost centers, and to set up comparisons between previous months, quarters, or years.

3. Can I print the income statement from the platform?
   You cannot print the income statement directly from the platform, but you can print it after exporting it to an Excel or PDF file.

4. Can I compare different periods, such as a month and a quarter?
   No, the periods must be of the same type; a month with a month, a quarter with a quarter, or a year with a year.

5. Can I view the income statement without enabling comparison?
   Yes, comparison is optional. If you do not specify a period for comparison, the income statement will appear for a single period as usual.