The financial report offers key insights about the financial health of your business. Head over to Reports > Financial Report to access this report.
Questions you can answer with this report include:
How has my revenue, expense, and profit fluctuated over time? This information is presented at the top of the report with a graph:
Additionally, the report offers the following metrics:
Net Sales: The amount of sales after discounts and returns have been deducted.
Gross Profit: The amount of margin in dollars remaining from the Net Sales price after the cost of the product is deducted.
Net Retail Margin: The gross margin, less net shipping expense and transaction fees, to provide the available margin after costs of retailing.
Net Sales: Net Sales is the true amount of sales you generated over a period of time. It represents all revenue after accounting for any discounts used to generate the sales.
Profit & Loss Summary: A breakdown of your financials get to your Net Retail Margin. This gives a summary of key variable categories and whether performance is improving relative to the prior period.
Revenue*: The sum of the Retail Sales Price per product, times the quantity sold of each product. The total sales obtained (before discounts) on the customer orders placed in a period. Total Revenue can also include other sources of revenue generated outside of sales.
Expenses: Expenses are the cost required for running your business.
*OrderMetrics made the decision to remove Sales Tax from the total Revenue Metric. This is inconsistent with Shopify’s reporting (which includes Sales Tax). The reason for this decision is removing tax provides a much truer picture of the merchant’s business performance. Tax is not considered revenue for a business, it’s owed to the local revenue authority. It is actually a liability that does not show up on the income statement. Here is more context from a US perspective.