A Profit and Loss with one column per month is the quickest way to see a trend: sales picking up, a cost creeping in, a quiet month that wasn't really quiet. Xero can do this in a few clicks once you know where the options are. This guide covers the ready-made layouts, the Compare with setting, year-to-date columns and how to keep the layout for next month.
The quickest way: a ready-made layout
Go to Reporting > All reports and open Profit and Loss. On the left there's a panel of common formats. The useful ones for monthly views are:
- Current financial year by month: a column for each month of the current financial year, plus a year-to-date column. Run it at year end and you have the classic 12-month P&L.
- Current and previous 3 months: this month, the three before it and a year-to-date total. Good for a quick trend.
- Current financial year by month, actual and budget: actual figures for months that have finished and budget figures for the rest, if you've set up a budget.
- Month to date comparison: this month so far against the same days in the previous three months. Handy mid-month.
- Year to date comparison: this financial year so far against the previous two.
You can mark the ones you use as favourites so they're at the top next time.
Building it yourself with Compare with
If none of the formats fit, set it up by hand:
- Set the date range to the latest month you want, for example last month.
- Under Compare with, choose how many past periods to show. Xero defaults to the same kind of period as your date range, so a one-month range gives previous months.
- Click Update.
Two things to know. Comparison periods can't be combined with comparing tracking categories, so it's either months side by side or tracking categories (such as departments) side by side, not both. And under More you can add a Year to date column, a Total column and a Percentage of trading income column, which is useful for seeing costs as a share of sales. Once you add the Total column, most other layout columns can't be added.
Cash or accrual
Under More > Accounting basis you can switch between accrual (invoices and bills when they're dated) and cash (when money actually moved). Accrual puts income and costs in the month they relate to, so the trend tends to be smoother; cash basis shows what actually hit the bank.
Custom columns with the layout editor
For anything more particular, like this month against the same month last year with a variance column, use Edit layout at the bottom of the report and add columns. Date columns can cover a fixed range or follow the report's date range, and a variance column compares two columns, optionally as a percentage. Then use Save as, choose Custom and name it, so next month you only change the date.
Sales by month
If you only want sales, the income section of the monthly P&L is usually enough. For sales per customer by month, the Income by Contact report has its own Compare with option. The Sales by Item report doesn't compare periods.
Exporting and sending it
Export to PDF, Excel or Google Sheets from the report. If you want it in a spreadsheet you maintain yourself, our free Excel management accounts template has a 12-month P&L layout ready to paste into.
If the monthly P&L goes to the same people every month, Reportpost can send it for you. Pick the Profit and Loss, set the period to last month and compare with the previous 11 months for a full 12-month view (or 2 or 3 for a short trend), choose cash or accrual, and it arrives as PDF, Excel or CSV on the day you choose with fresh figures from Xero. You can try the demo without connecting anything.
Related: Xero reports by tracking category, sending monthly management accounts and a Xero month-end checklist.
For a closer look at the report itself, with a sample, see the Xero Profit and Loss explained.