Sales figures alone do not tell you if you are making money. The Profit & Loss report does — it weighs your income against the cost of goods and your expenses to reveal real profit. Open it at vfile.app/reports/profit-loss.
What it shows #
- Gross profit — sales minus the cost of the goods sold.
- Expenses and payroll — your running costs and staff pay.
- Net profit — what is left after everything.
It also factors in stock adjustments, purchase and sale returns, and discounts, so the picture is complete.
Worked example #
At month-end you check how the shop really did.
- You open the Profit & Loss report and set the range to last month.
- It shows sales of ₨1,250,000 and cost of goods ₨900,000, giving a gross profit of ₨350,000.
- Below that, ₨120,000 of expenses (rent, utilities) and a separate Total Payroll of ₨80,000 are deducted.
- Your net profit comes to ₨150,000 — the number that actually matters.
What this affects #
- The report is read-only — it summarises the effect of everything else you recorded.
- It relies on accurate cost prices (from purchases and opening stock) — wrong costs mean wrong profit.
- Both expenses and payroll pull net profit down, on their own lines.
Frequently asked questions #
My profit looks too high — what did I miss?
Usually unrecorded expenses or payroll, or cost prices set too low. Check those first.
Does staff salary show here?
Yes, as a separate Total Payroll line — not mixed in with Expenses.
Can I see profit for just one branch?
Yes — filter the report by location.