Profit and Loss Report Metric

Track your income, cost of sales, and operating expenses to calculate net profit

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Financial KPI Example - Profit and Loss Report MetricFinancial KPI Example - Profit and Loss Report Metric


The Profit and Loss metric displays the business's income, cost of sales, and total expenses. This key accounting metric can help business owners, bookkeepers, and accountants easily calculate the business's net profit. The profit and loss metric will help determine whether or not a company's net profit is consistent month over month.

Key terms

  • Income: The amount of money received by the business
  • Expense: The cost required for running the business
  • Net Profit: The amount of money the business makes after deducting cost of sales and expenses from income

Success indicators

  • Having more income than expenses and cost of sales, meaning a profit for the business
  • Keeping expenses and cost of sales lower than overall income

Monitoring Financial KPIs on a Dashboard

Once you have established benchmarks and targets for your Profit and Loss Report, you’ll want to establish processes for monitoring this and other Financial KPIs. Dashboards can be critical in this regard. Read more

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