The income statement (also known as DRE in Brazil, or P&L) is the report that shows, in an organized way, whether the company made a profit or a loss in a period — and, above all, where the result was built. It starts from revenue and keeps subtracting, line by line, everything that consumes that money, down to the net result. It's the most complete managerial reading of the business's performance.
In WiseData Finances, the income statement is built automatically from your income and expenses, classified by their categories. The more consistent your day-to-day records are, the more accurate it gets.
The yearly view
When you open the income statement, you choose the year and see three indicators at the top — Net revenue, Gross profit and Net result — followed by a table with the 12 months. Each month is a row; click it to open the full statement for that month.
The monthly statement, line by line
A month's detail follows the classic income statement structure, top to bottom:
Gross operating revenue — everything the company billed in the month.
(−) Revenue deductions — what's subtracted from revenue (sales taxes and the like), broken into items.
= Net operating revenue — what actually remains of revenue after the deductions.
(−) COGS — the Cost of Goods Sold. This field is editable: you enter the direct cost of what was sold.
= Gross profit — net revenue minus COGS.
(−) Operating expenses — split into administrative, commercial and personnel.
(−) Depreciation — also editable, for you to enter the period's depreciation.
(+) Other income — income that doesn't come from the core operation.
= Operating result — the operation's result before the financial part (the EBIT).
(±) Financial result — financial income minus financial expenses (interest, for example).
= Pre-tax result — profit before income tax.
(−) Income taxes — calculated from the tax types you configure for the company.
= Net result — the bottom line: what was actually left for the company.
What's automatic and what you adjust
Most lines are calculated on their own from the entries and categories. Two fields are up to you, because they depend on internal management: COGS and depreciation. After entering them, click Save — the month's result is recalculated right away.
Practical example: in a month, the company bills $100,000 (gross revenue). After $8,000 of deductions, net revenue is $92,000. You enter COGS of $40,000 — gross profit becomes $52,000. After operating expenses and depreciation, with the financial result and income taxes adjusted, the statement reaches the month's net result. In seconds you see where the profit was consumed.
Exporting
Both the yearly view and the month's detail can be exported, useful to take to your accountant, partners or the bank. Export is part of the higher plans' features.
Tip
Keep categories well applied on expenses and income — that's what separates, in the statement, what's administrative, commercial and personnel. And set aside a moment at each month's close to enter COGS and depreciation: with those two adjustments, the statement stops being an estimate and starts reflecting the real result.