Income statement glossary terms for bookkeepers: P&L, revenue, COGS, operating expenses, gross margin, and month-over-month review.
The income statement is where owners look first, but bookkeepers know it depends on hundreds of small categorization calls. A Stripe fee posted to subscriptions, a contractor payment posted to wages, or a refund posted to revenue can make the P&L tell the wrong story.
Start with the income statement, or P&L. It shows revenue, cost of goods sold, gross profit, operating expenses, and net income for a period. The useful question is not just "did the client make money?" It is whether the categories are consistent enough to compare this month to last month.
Use this sub-hub for income statement vocabulary: revenue recognition, COGS, gross margin, operating expenses, other income, reimbursements, refunds, and P&L review. Growthy categorizes routine transactions automatically and flags lower-confidence items, so the bookkeeper spends less time clicking and more time checking whether the trend actually makes sense.
If you want to see how consistent categorization keeps income statement terms working month over month, see how Growthy's features support this workflow. Pattern learning keeps COGS and operating expenses in the right accounts automatically. You review the exceptions, not the whole feed. Built by a CPA firm partner who reads P&Ls every month.
Free during alpha. Read-only access. You review every sync.
Request Early AccessThe income statement (P&L) reports revenue, expenses, and net income for a period. Here's how to read each section, what it reveals about the business, and how to set up class- and location-based custom P&L views in QBO.