Profit & Loss Report
Overview
The Profit & Loss (P&L) report -- also called an Income Statement -- is the single most important financial report for understanding your garage's performance. It answers one simple question: Are you making money?
The report works by taking all your revenue (money coming in), subtracting all your expenses (money going out), and showing you what is left -- your profit (or loss).
Why this matters:
You can be busy every day, have cars in every bay, and still lose money. High revenue means nothing if your costs are even higher. The P&L report shows you the full picture: how much you earned, what you spent, and what you actually kept.
What you can learn from this report:
- Whether your garage is profitable or losing money
- How much you earn from services versus parts
- What your biggest expenses are
- How your performance compares to last month, last quarter, or last year
- Where to focus to improve your bottom line
How to Access the Report
- Log in to your autoGMS dashboard.
- From the sidebar, click Financial Reporting.
- Select this report directly from the section list.
- Select Profit & Loss from the report list.
The report loads showing the current month's data by default.
Good to know: The Profit & Loss report is available to garage owners, organisation owners, and garage admins. Managers with finance permissions can view the report but cannot export or share it.
Understanding the Report Layout
The Profit & Loss report is organized into clear sections that follow standard accounting conventions. Even if you are not an accountant, this structure makes it easy to understand.
The Basic Formula
Revenue
- Cost of Goods Sold (COGS)
= Gross Profit
Gross Profit
- Operating Expenses
= Net Profit (or Loss)
Each section of the report corresponds to part of this formula.
Section 1: Revenue
Revenue is the money your garage has issued to customers for completed work in the selected period. This is your "top line" -- the starting point for all calculations.
For P&L, autoGMS counts non-deposit invoices issued in the selected period only when they are linked to completed jobs. Completed jobs that have not yet been invoiced are shown separately for follow-up, but they are not included in Gross Income.
Revenue Categories
| Category | What It Includes |
|---|---|
| Issued invoice income: labour/services only (no parts) | Labour and service income from issued invoices linked to completed jobs |
| Parts Revenue | Income from parts and supplies sold to customers |
| Revenue Adjustments | Debit-note adjustments issued in the selected period |
| Not Yet Invoiced Completed Jobs | Completed jobs without an issued invoice; shown for follow-up only and not counted in P&L revenue |
What You Will See
The Revenue tab shows two separate tables:
- Issued invoices linked to completed jobs -- included in P&L revenue
- Not yet invoiced completed jobs -- not included in P&L revenue
Example
| Revenue | This Month | Last Month | Change |
|---|---|---|---|
| Issued invoice income: labour/services only (no parts) | £12,500 | £11,800 | +5.9% |
| Parts Revenue | £8,200 | £7,500 | +9.3% |
| Revenue Adjustments | £300 | £400 | -25.0% |
| Total Revenue | £21,000 | £19,700 | +6.6% |
Section 2: Cost of Goods Sold (COGS)
COGS represents the direct costs of the completed jobs that are linked to the issued invoices counted in P&L revenue. This keeps revenue and direct job costs on the same basis.
COGS Categories
| Category | What It Includes |
|---|---|
| Parts Cost | What you paid for parts that were sold to customers |
| Technician Labour Cost | Internal technician labour cost, when technician labour costing is enabled |
| Recorded COGS Expenses | COGS expense records shown for checking only; they are not added to the P&L COGS total |
What You Will See
| Cost of Goods Sold | This Month | Last Month | Change |
|---|---|---|---|
| Parts Cost | £4,100 | £3,800 | +7.9% |
| Technician Labour Cost | £500 | £600 | -16.7% |
| Total COGS | £4,600 | £4,400 | +4.5% |
Section 3: Gross Profit
Gross Profit is what remains after subtracting COGS from Revenue. This is the money you have left to cover your operating expenses and, hopefully, generate a profit.
Gross Profit = Total Revenue - Total COGS
Gross Profit Margin
The gross profit margin is your gross profit expressed as a percentage of revenue:
Gross Profit Margin = (Gross Profit ÷ Total Revenue) × 100
Example
| This Month | Last Month | |
|---|---|---|
| Total Revenue | £21,000 | £19,700 |
| Total COGS | £4,600 | £4,400 |
| Gross Profit | £16,400 | £15,300 |
| Gross Margin | 78.1% | 77.7% |
What Is a Good Gross Margin?
For a typical garage:
- Above 60% -- Healthy. Your parts markup and labor rates are covering direct costs well.
- 50-60% -- Acceptable, but look for ways to improve.
- Below 50% -- Concerning. Your parts costs may be too high or your prices too low.
Good to know: Gross margin varies by service type. Oil changes might have 70%+ margin on labor but only 30% on parts. Complex repairs often have lower parts margins but higher labor margins. Your overall mix of services affects your total gross margin.
Section 4: Operating Expenses
Operating expenses are the ongoing costs of running your garage, regardless of how much work you do. You pay these whether you service zero cars or a hundred.
Expense Categories
| Category | What It Includes |
|---|---|
| Payroll | Staff wages, salaries, benefits, taxes |
| Rent | Facility rent or mortgage payments |
| Utilities | Electricity, gas, water, internet, phone |
| Insurance | Business insurance premiums |
| Marketing | Advertising, promotions, website costs |
| Equipment | Tools, equipment purchases and maintenance |
| Vehicle Expenses | Company vehicle costs (fuel, maintenance, insurance) |
| Professional Fees | Accountant, legal, consulting fees |
| Office Supplies | Office materials and supplies |
| Training | Staff training and certifications |
| Subscriptions | Software subscriptions (including autoGMS) |
| Bank Fees | Card processing fees, bank charges |
| Depreciation | Depreciation of equipment and assets |
| Other Expenses | Miscellaneous operating costs |
How Financial Entries Affect Profit & Loss
Financial Entries only affect Profit & Loss when they represent recognized expense impact.
| Financial Entry Type | P&L Treatment |
|---|---|
| Prepaid Expense | Recognized gradually over time |
| Expense Payable | Included as expense when recorded |
| Asset Purchase | Excluded from ordinary operating expense on day one |
| Capital Contribution | Excluded from revenue and profit |
| Account Transfer | Excluded entirely |
Use Financial Entries when you want these items reflected correctly.
What You Will See
| Operating Expenses | This Month | Last Month | Change |
|---|---|---|---|
| Payroll | £8,000 | £7,800 | +2.6% |
| Rent | £2,500 | £2,500 | 0.0% |
| Utilities | £600 | £580 | +3.4% |
| Insurance | £400 | £400 | 0.0% |
| Marketing | £300 | £200 | +50.0% |
| Equipment | £150 | £100 | +50.0% |
| Other | £250 | £220 | +13.6% |
| Total Operating Expenses | £12,200 | £11,800 | +3.4% |
Section 5: Net Profit (or Loss)
Net profit -- also called your "bottom line" -- is what remains after all expenses are subtracted. This is the money you actually keep.
Net Profit = Gross Profit - Operating Expenses
Net Profit Margin
The net profit margin is your net profit expressed as a percentage of revenue:
Net Profit Margin = (Net Profit ÷ Total Revenue) × 100
Example
| This Month | Last Month | |
|---|---|---|
| Gross Profit | £16,400 | £15,300 |
| Operating Expenses | £12,200 | £11,800 |
| Net Profit | £4,200 | £3,500 |
| Net Margin | 20.0% | 17.8% |
What Is a Good Net Margin?
For a typical garage:
- Above 15% -- Excellent. You are running an efficient, profitable operation.
- 10-15% -- Good. Solid profitability with room for improvement.
- 5-10% -- Acceptable, but look for ways to reduce expenses or increase revenue.
- Below 5% -- Thin margins. Small problems could push you into losses.
- Negative -- You are losing money. Immediate action is needed.
Good to know: A garage doing £250,000 in annual revenue at a 10% net margin keeps £25,000 in profit. The same garage at 15% keeps £37,500 -- a difference of £12,500 just from a 5-point margin improvement.
Using the Report Controls
Date Range Selection
At the top of the report, you can select the time period to analyze:
| Option | What It Shows |
|---|---|
| This Month | Current calendar month |
| Last Month | Previous calendar month |
| This Quarter | Current quarter (Jan-Mar, Apr-Jun, Jul-Sep, Oct-Dec) |
| Last Quarter | Previous quarter |
| Year to Date | January 1st through today |
| Last Year | Full previous calendar year |
| Custom Range | Any date range you specify |
Comparison Mode
Enable comparison to see how the selected period compares to:
- Previous Period -- Compare this month to last month, this quarter to last quarter, etc.
- Same Period Last Year -- Compare this March to last March, for example.
When comparison is enabled, each line item shows the amount, the prior period amount, and the percentage change.
Detail Tabs
Use the Revenue tab to see the issued invoices included in P&L revenue and the completed jobs that are not yet invoiced.
Use the Expenses tab to see operating expense categories and the individual operating expense transactions behind them.
You can sort the detail tables by clicking the column headers.
Methodology
Every financial report in autoGMS includes a Methodology button in the report header. Click it to open a panel explaining exactly how the numbers are calculated -- what data sources are included, how categories are mapped, and what assumptions the report makes. This is useful when sharing reports with your accountant or when you need to understand why a number looks different from what you expected.
Exporting the Report
Export Options
Click the Export button in the top-right corner to download the report as an Excel (.xlsx) file. The export includes all data for the selected date range.
What Is Included in Exports
Exports include:
- The date range covered
- Summary totals and margins
- Issued invoices included in P&L revenue
- Completed jobs not yet invoiced, shown as reference only
- Linked job COGS detail
- Recorded COGS expenses, shown as reference only
- Operating expense categories and transactions
- Your garage name and report generation date
Interpreting Your Results
Healthy Signs
- Positive net profit (you are making money)
- Gross margin above 60%
- Net margin above 10%
- Revenue growth month-over-month
- Expenses growing slower than revenue
Warning Signs
- Negative net profit (you are losing money)
- Gross margin below 50%
- Net margin below 5%
- Revenue declining while expenses stay the same
- One expense category growing much faster than others
What to Do If You Are Losing Money
- Check your pricing. Are your labor rates competitive? Are you marking up parts enough?
- Review parts costs. Can you negotiate better deals with suppliers?
- Analyze your expense categories. Which ones are largest? Can any be reduced?
- Look at labor efficiency. Are technicians productive? Is work being completed efficiently?
- Review your service mix. Are you doing too many low-margin jobs?
Tips and Best Practices
-
Review monthly. Do not wait until year-end. Monthly P&L reviews help you catch problems early.
-
Use comparison mode. A number on its own means little. Comparing to last month or last year gives context.
-
Track trends, not just snapshots. One bad month is not a crisis. Three bad months in a row is a trend that needs action.
-
Share with your accountant. Export the report and send it to your accountant regularly. They can spot issues you might miss.
-
Set targets. Once you know your current margins, set targets for improvement and track progress each month.
-
Drill into the details. If an expense jumps, expand the category to see exactly what changed.
-
Budget comparison. If you have budget data, compare actual results against your budget to see where you are over or under.
Frequently Asked Questions
Why does my revenue here not match my invoices total?
The P&L report counts issued non-deposit invoices only when they are linked to completed jobs. Draft invoices, deposit invoices, invoices for jobs that are not complete, and completed jobs with no issued invoice are not included in Gross Income.
What is the difference between gross profit and net profit?
Gross profit is revenue minus the direct costs of the work you did (parts, outsourced labor). Net profit is what remains after also subtracting all your operating expenses (rent, payroll, utilities, etc.). Net profit is what you actually keep.
Why is my net profit margin so different from my gross profit margin?
Operating expenses. You might have a 75% gross margin (healthy), but if your rent, payroll, and other operating expenses consume most of that, your net margin could be 10% or less. High operating expenses squeeze your net profit.
How often should I review this report?
At minimum, monthly. Many garage owners check weekly during busy periods or when making significant changes to the business.
Can I see P&L for individual services?
The standard P&L report shows your garage as a whole. For service-level profitability, check the Analytics dashboard which breaks down revenue by service type.
How do I verify margin for one job?
Use Analytics -> Jobs for job-level margin. The P&L report explains overall revenue, COGS, gross profit, net profit, and margins for the selected period, while the Analytics Jobs tab shows the completed-job table with revenue, parts cost, labour cost, gross profit, net profit, gross margin, and net margin for each job.
What if I have multiple garages?
Each garage has its own P&L report. If you are an organisation owner, you can also view a consolidated P&L across all garages (if enabled).
How far back can I view historical data?
You can generate P&L reports for any period since your garage started using autoGMS. Historical data is retained indefinitely.
Does this report include VAT/GST?
The standard P&L report shows amounts excluding tax. Tax collected is a liability you owe to the government, not revenue. Tax paid on purchases is recoverable, not an expense. See the Tax Report for details on your tax obligations.