The Profit & Loss screen gives you a quick overview of your business’s profitability for the current month. It tracks key financial metrics, helping you understand if your business is making a profit or running at a loss.
Each metric is compared to the previous 30 days, so you can see how your financial performance is changing over time.
Gross Profit
The profit your business makes after subtracting the cost of goods sold from revenue.
A positive gross profit means your business is making money after covering product/service costs.
A negative gross profit means your costs are higher than your revenue.
Example:
If your Gross Profit is - $2,841 with -14% in red, it means your profit is down 14% compared to the previous 30 days, indicating a decline in revenue or an increase in costs.
Operating Profit
The profit left after deducting operating expenses like rent, payroll, and utilities.
A positive number means your business is profitable after covering operating costs.
A zero or negative number means your business is not generating enough revenue to cover operating expenses.
Example:
If Operating Profit is $1200 with -10% in red, it means your business didn’t generate a profit after covering operating expenses this month and you need to consider to reduce expenses - Ask Noya AI to assist you with this.
Net Profit
Your final profit after all expenses, taxes, and interest are deducted.
A positive number means your business is making money.
A negative number means your business is operating at a loss.
Example:
If Net Profit is - $3,204 with -17% in red, it means your losses increased by 17% compared to last month. Ask Noya AI to assist you with identifying expenses that you can reduce and improve profits.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
A measure of profitability before considering taxes, interest, and depreciation costs.
A higher EBITDA means better operational performance.
A zero or low EBITDA suggests the business is struggling to generate earnings.
📊 Example:
If EBITDA is $230, it means your business did not generated some earnings before taxes and depreciation this month. Ask Noya AI to assist you with identifying taxes, depreciation that you can reduce and improve profits.
Contractor Ratio
The percentage of revenue spent on contractors or outsourced work.
A high contractor ratio means a large portion of your revenue is going toward outsourced work.
Example:
If Contractor Ratio is 0%, it means you haven’t recorded contractor expenses this month.
Subscription Ratio
The percentage of revenue spent on software subscriptions and recurring services.
A high percentage means you’re relying heavily on recurring expenses like SaaS tools.
Example:
If Subscription Ratio is 0% with -100% in red, it means you either cancelled subscriptions or haven’t recorded any subscription expenses this month.
Why This Matters
Tracking your Profit & Loss helps you:
✅ Identify if your business is profitable this month.
✅ Understand if expenses are too high and need to be managed.
✅ See trends in operating costs and adjust accordingly.
Finoya keeps your financial data updated weekly, so you always have a clear and accurate view of your cash flow. The top bar shows the last sync date and the next scheduled update, ensuring you're working with the latest insights to manage your business finances effectively.