P&L report doesn't show gross profit just Total income

Hi TraceyC1,

The reason there is no Gross Profit line on the P&L is because there are no Cost of Sales (or Cost of Goods Sold on the desktop version) type of accounts in your Chart of Accounts.

It's perfectly normal for any fee-based services business such as consultants, agents, lawyers, bookkeepers etc not to have gross profit on the P&L (which is sometimes re-titled Income and Expenditure Account).

Some may have direct costs like sub-contractors and commissions payable which they would want to categorise under Cost of Sales, in which case, both Cost of Sales and Gross Profit will show up on P&L.