Profit & Loss report for small business: how Tiram calculates your bottom line

Gross profit is revenue minus what the goods themselves cost you (cost of goods sold) — it tells you whether your pricing and margins are healthy on the products you sell. Net profit goes further: it subtracts everything else running the business costs (rent, salaries, utilities) and nets out GST liability against GST already paid on expenses, to answer the harder question — is the business actually making money once every cost is counted, not just the cost of the goods themselves. A shop can have a healthy 18% gross margin and still post a net loss once rent and salaries are paid, exactly as the worked example above shows.

Revenue comes from your issued invoices for the selected date range. Cost of goods sold is netted against revenue to produce gross profit and gross margin %. Operating expenses are pulled from whatever you've logged under Expenses, broken down by category (Salaries, Rent, Utilities, Misc, and any custom categories you add) to produce operating profit. Finally, output GST (collected on sales) is offset against input GST (paid on expenses) to arrive at net tax, and net profit is operating profit minus that net tax position.

A negative number in this report is not automatically bad news for a growing business — it usually means expenses (or GST timing) outpaced revenue for that specific period, and it's worth checking whether that's a one-off (a big one-time expense, a slow sales month) or a pattern worth fixing (margins too thin, expenses creeping up). The point of the report is to surface this in weeks, not find out at year-end from a CA.

Every figure in the P&L traces back to a transaction you've already recorded — an issued invoice, a purchase receipt, or an expense entry — the same connected data model used across Tiram's reports. There's no separate P&L data entry; get invoicing, purchase costing, and expense logging right and the P&L reflects it automatically for any date range you pick.

The report exports to CSV directly from the Profit & Loss screen, ready to hand to a CA for review or attach to a loan or investor conversation, without re-keying numbers into a spreadsheet.

The Profit & Loss report — and the related Profitability analysis (margin by product and customer) — are included on Tiram's Gold and Platinum plans. The Silver plan does not include either report; it covers day-to-day billing, inventory, and basic reports without the deeper financial-statement layer. This is a plan-tier gate, not a platform gate, and applies identically on the cloud app and the offline Windows/Mac desktop app.