Profit waterfall report

This report shows where your revenue goes by starting at total revenue and removing one cost at a time until it reaches net profit, so the biggest drops point to your biggest costs.

What it shows

It starts at your total revenue for the period and steps down through each cost in turn until it reaches net profit. If your prices include tax, the tax is removed as the first step. Along the way it marks two milestones: gross profit and contribution margin. Each cost step can be opened to see the individual entries that make it up, such as separate fixed costs, salaries, or marketing components. The bottom of the waterfall is your net profit, with your net margin for the period.

Filters and options

• Date range picker.
• Compare to the previous period, the previous year, or a custom period. With comparison on, the comparison shows alongside each line, listing revenue, each cost layer, and net profit for this period next to the comparison period.
• Filter by channel.

When to use it

Open it when you want a clear, visual answer to "where is my money going?" The biggest steps are your biggest costs, so they are usually the best place to look for savings. For the same numbers as a month-by-month statement, see the profit and loss report; to learn what moved profit between two periods, open profit change; and for how each cost is worked out, read how profit is calculated.