Income Statement
The Income Statement (also called Profit & Loss Statement) shows your dive center's revenue, expenses, and profit over a specific time period. This essential financial report helps you understand business performance, identify trends, and make informed decisions about operations and growth.
What You'll Learn
How to generate and customize income statement reports
How to understand revenue, expenses, and profit calculations
How to analyze financial performance and identify trends
How to use comparison periods for better insights
How to troubleshoot common income statement issues
Before You Start
Make sure you have:
Chart of accounts properly configured (setup guide)
Financial transactions recorded in your system
Understanding of your business revenue streams and expense categories
Appropriate permissions to view financial reports
Knowledge of your business's seasonal patterns
Understanding the Income Statement
Income Statement Structure
The income statement follows this basic structure:
Key Components
Revenue (Income):
Course fees and certification income
Equipment rental revenue
Retail product sales
Dive trip and excursion income
Other service revenue
Expenses:
Cost of Goods Sold - Direct costs of products sold
Operating Expenses - Day-to-day business expenses
Other Expenses - Interest, depreciation, and non-operating costs
Net Income:
Total revenue minus total expenses
Shows profit (positive) or loss (negative) for the period
Generating Income Statement Reports
Step 1: Access Income Statement Reports
Navigate to Finance → Reports in the main menu
Click Income Statement from the available report options
The income statement interface will open with parameter options
Step 2: Set Report Parameters
Quick Filter Options:
This Month - Current month from 1st to last day
Last Month - Previous complete month
This Quarter - Current quarter (Jan-Mar, Apr-Jun, Jul-Sep, Oct-Dec)
Last Quarter - Previous quarter
This Year - January 1st to December 31st
Last Year - Previous complete year
Date Range Selection:
Start Date - Beginning of the reporting period
End Date - End of the reporting period
Comparison Options:
No comparison - Standard report without comparison
Previous Month - Compare with the same period last month
Previous Year - Compare with the same period last year
Previous Quarter - Compare with the previous quarter
Year to Date - Compare current period with full year-to-date
Additional Options:
Trip Filter - Filter by specific dive trips (when dimensions feature is enabled)
Export Options - PDF and Excel (Sheet) export
Step 3: Generate and Review Report
Click Generate Report to create the income statement
Review the report structure and account balances
Check key metrics: Total Income, Total Expenses, Net Income
Analyze any comparison data if selected
Understanding Income Statement Sections
Revenue Section
Course Revenue:
Open Water certification fees
Advanced certification fees
Specialty course fees
Private instruction fees
Refresher course fees
Equipment Rental Revenue:
Scuba gear rental fees
Wetsuit rental fees
Specialty equipment rentals
Long-term equipment rentals
Retail Sales Revenue:
Diving equipment sales
Accessories and gear sales
Apparel and merchandise
Books and training materials
Trip and Excursion Revenue:
Local dive trip fees
Multi-day dive packages
Specialty dive experiences
Travel and accommodation packages
Other Revenue:
Equipment service and repair
Air fill and nitrox fees
Facility rental income
Miscellaneous service fees
Expense Section
Cost of Goods Sold (COGS):
Cost of retail products sold
Equipment maintenance costs
Course materials and supplies
Direct labor costs for services
Operating Expenses:
Staff Costs
Instructor salaries and wages
Administrative staff compensation
Payroll taxes and benefits
Training and certification costs
Facility Costs
Rent or mortgage payments
Utilities (electricity, water, internet)
Insurance premiums
Maintenance and repairs
Cleaning and janitorial services
Equipment Costs
Equipment purchases and leases
Maintenance and repairs
Equipment insurance
Depreciation expenses
Marketing and Advertising
Website maintenance
Social media advertising
Print materials and brochures
Event sponsorships
Online advertising campaigns
Administrative Expenses
Office supplies and equipment
Software licenses and subscriptions
Professional services (accounting, legal)
Bank fees and charges
Travel and entertainment
Insurance and Legal
General liability insurance
Professional liability insurance
Property insurance
Legal fees and compliance costs
Analyzing Income Statement Results
Key Performance Indicators
Revenue Metrics:
Total Revenue Growth: Compare with previous periods
Revenue per Course: Average revenue per certification
Revenue per Customer: Average revenue per client
Seasonal Patterns: Identify peak and off-peak periods
Expense Analysis:
Expense Ratio: Total expenses as percentage of revenue
Cost per Course: Average cost to deliver a course
Staff Cost Ratio: Staff costs as percentage of revenue
Facility Cost Ratio: Facility costs as percentage of revenue
Profitability Metrics:
Net Profit Margin: Net income as percentage of revenue
Gross Profit Margin: Gross profit as percentage of revenue
Operating Profit Margin: Operating income as percentage of revenue
Profit Trend: Compare profitability across periods
Trend Analysis
Monthly Trends:
Track revenue and expense patterns month-over-month
Identify seasonal variations in your business
Monitor growth or decline trends
Spot unusual spikes or drops
Quarterly Analysis:
Compare quarterly performance year-over-year
Identify business cycle patterns
Plan for seasonal variations
Assess quarterly growth rates
Annual Performance:
Review full-year financial performance
Compare with previous years
Identify long-term trends
Plan for future growth
Troubleshooting Common Issues
Data Accuracy Problems
Missing Transactions:
Check if all transactions are properly recorded
Verify account classifications are correct
Ensure proper date ranges are selected
Review transaction approval workflows
Incorrect Balances:
Verify account balances match source documents
Check for duplicate or missing entries
Review account reconciliation reports
Ensure proper account hierarchy setup
Comparison Period Issues:
Verify comparison period dates are correct
Check if comparison data exists for selected periods
Ensure consistent account structure across periods
Review any account changes or reclassifications
Report Generation Issues
Loading Errors:
Check internet connection and system status
Verify user permissions for financial data
Clear browser cache and refresh page
Contact support if issues persist
Export Problems:
Ensure report data is fully loaded before export
Check available disk space for downloads
Verify PDF viewer compatibility
Try different export formats if available
Best Practices
Regular Reporting Schedule
Monthly Reviews:
Generate income statements by the 5th of each month
Review revenue and expense trends
Compare with budget and previous periods
Identify any unusual variances
Quarterly Analysis:
Comprehensive quarterly review
Year-to-date performance assessment
Budget variance analysis
Strategic planning updates
Annual Planning:
Year-end financial review
Tax preparation and planning
Next year budget development
Business strategy assessment
Data Quality Maintenance
Transaction Management:
Enter transactions promptly and accurately
Use consistent account classifications
Review and approve transactions regularly
Maintain proper documentation
Account Structure:
Keep chart of accounts organized
Use consistent naming conventions
Regular account cleanup and maintenance
Proper parent-child relationships
Analysis and Decision Making
Performance Monitoring:
Track key performance indicators
Identify trends and patterns
Monitor budget performance
Spot opportunities and risks
Business Planning:
Use insights for pricing decisions
Plan for seasonal variations
Identify growth opportunities
Optimize expense management
The income statement is your primary tool for understanding business performance and making informed financial decisions. Regular analysis and proper interpretation will help you optimize operations and drive business growth.
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