The profit and loss statement is the heart of Salon Accounting's book keeping. It is comprised of three parts: your revenue, net income or profit, and expenses.
Your revenue is made of up your services, tips, and merchandise sold. This is simply how much money you are receiving from customers.
Expenses include items like taxes, utlities, education, rent, etc. Salon Accounting will tally up all the expenses and taxes and combine them into Expenses.
The net income is the net of your Revenue minus your Expenses. As soon as you make changes in Salon Accounting books, your revenues, expenses and profits are automatically recalculated!
Profit and loss statements should be prepared often to find any discrepancies in income or expenses!