We recently released new reports as well as newer versions of reports that did, offering features that previously didn’t exist. We’ve already gotten feedback that these reports are making a difference to people. However it’s the heavy hitters, the core financial reports, which really shine – welcome to the new Profit & Loss.
The Profit & Loss is our next big step towards making the core financial reports in Xero the best in the world. There are lots of great aspects to this release, I’ll go over the headlines and look at some of the hot button topics we know you care about. This video provides a good overview of what our new reports have to offer.
As with all new reports, the Profit & Loss uses convenience dates to quickly select from a number of commonly used date ranges. Under Report Settings there is a selector for cash or accrual basis, as well as the number of columns you want to show on the report. Like all new reports, if you save a template, the next time you run the report it will remember the last settings. The on-screen version of the report and the PDF are better spaced with a huge focus on improving the readability.
Most importantly, behind that innocuous grey Edit link, there is a new layout editor. It does exactly what it says on the tin and lets you lay out the order of groups and accounts on your report in just the way you want. It uses an intuitive drag and drop interface, and allows you to do some things which haven’t been possible in Xero before.
First, you can now create top level groups/header groups. Previously you had to live with the names of the groups in our default layouts and you couldn’t create any extras. Using the new layout editor you can create as many top level groups as best illustrates your financial performance. So, if you would like to split Investment Income from Trading Revenue, well now you can!
When adding groups in the layout you can set groups to be a Top Level group.
Once the group is created, you can drag and drop accounts into that new group and see the final result.
This ability will allow a much better breakdown of income items, expenses, and also allows you to create groups beneath Net Profit if you want to show distributions after profit for trusts or partnerships.
New header levels are great, but we need to make sure that these new groups will be totaled correctly as well. So therefore you can now create and edit your own formulas!
Since we added a new header level group to this report, we need to make sure our Gross Profit formula knows to include it. Simply click on the formula heading to edit it.
Editing is necessary in this case, but it’s just as easy to add our own formula if there is a subtotal or some analysis you want to see on the report. For example, a Gross Profit percentage!
There are lots of formulas which are useful – Net Profit before Tax, EBITDA, partnership profit splits – so we hope this feature helps you build a better P&L!
All the things
The final feature worth mentioning, is that you can now order everything. Whether it’s accounts, groups or formulas, you can now edit the order they’re displayed in the layout editor. In the past we sorted by name, but that didn’t work for some groups. So if we look at the Cost of Sales group in the screenshot above, the order is alphabetical, and not how you’d wish it to be. You can edit the layout to put accounts in whatever order you wish, in this case definitely not alphabetical.
So there we are, the first release for the core financial reports, but certainly not the last. This release is mostly about the layout editor, and it’s a really important one for us because it lays the foundation for a lot of really great features to come. Expect to see the following features over the coming months.
- Drilldowns from the new P&L to the new Account Transactions report
- New Balance Sheet report
- New Movements in Equity report
- Hanging / switching accounts
- Custom date columns in layouts
- Custom budget columns in layouts
- Custom formula columns in layouts
- Page break triggers for PDF export
- Layout editing of schedules in many places
We have a lot of features coming out and as with previous releases, when we have something which adds real value, we will ship it. So while this P&L doesn’t have features like budgets yet, there is a ton of value for so many people that it would have been a shame to hold it back.
Let us know what you think and enjoy making beautiful reports.