
Within 17hats you are met with a variety of reports: our newly released referral and lead source reporting, sales tax, upcoming and aged receivables, clients sales and product sales. However, the most important one is Profit & Loss – but many members ignore it for the wrong reason.
While 17hats has a bookkeeping feature, many don’t use it mainly because bookkeeping is a pain. And, because they don’t use bookkeeping they ignore the reports. So, we are glad you are here, and hopefully you will utilize this valuable report!
Profit & Loss Report Breakdown
While you might not be adding your expenses into 17hats, if you are being paid through 17hats Invoices, a detailed summary of your income transactions are being recorded in this report.
If you are only looking at the “Profit” side of the report, you can see your total income as well as that income broken down into your transaction categories.
What are 17hats Transaction Categories?
Transaction categories (or buckets of money, as I like to call them) give you great insight into your business which is why I have a recommended way of setting these categories up so this year next time, you’ll be set for success.
Recommended Setup for Transaction Categories in 17hats
You can set up your transaction categories however you wish, however, I highly recommend setting them up by revenue stream first, then by product type. This will give you the most detailed account of your business income.
What is a revenue stream? A revenue stream is a source from which a business earns it’s money. And, most businesses have multiple revenue streams.
Let’s Breakdown a Few Different Types of Revenue Streams:
- Photographers:
- Weddings
- Newborn Portraits
- Senior Portraits
- Headshots
- Family Portraits
- Commercial Event Photography
- Boudoir
- Doulas:
- In-home Birth
- Hospital Birth
- Designers:
- Web Design
- Social Media Design
- Print Design
- Logo or Brand Design
- Videographer:
- Commercial Work
- Weddings
- Events
- Coaches:
- Group Coaching
- 1:1 Coaching
- Intensives
Even if you have a profession outside one that is listed, you can see that a revenue stream is a source of income. If you don’t know what your revenue streams are, don’t over complicate it. And, you might just have one.
Next, I like to break my revenue streams down by product type. For example; a la carte, packages, custom quote, flat rate, session fee. Each revenue stream and business owner will have their own way of offering products and services.
By breaking it down one more step, I will be able to see how much money my packages for each revenue stream brought in. Then, I can see how well I am doing on upsells, or what areas need a little more of a sales push.
Create for Income Transaction Categories
Once you have your revenue streams and your product types laid out, you can create your income transaction categories within the Bookkeeping options of 17hats. It’s as easy as clicking the ‘Add Category’ next to Income and typing in your category name.
Final Step – Add the Appropriate Income Category to Your Products and Services
And, now the final step is to tie your income transaction categories back to your product or service. When an income transaction category is added to the product, each time that item is purchased via an invoice, the purchased amount will be recorded for that income transaction category and therefore show up on your business’s Profit & Loss Report in 17hats.
Not as Hard as It Looks
It’s common to be a little overwhelmed by this quick task. Most things in bookkeeping can cause a slight panic. But, if you have never set up transaction categories before, there really isn’t much harm you can do.
If you feel a little overwhelmed, start with one revenue stream and adjust those products and services. Then you can get the hang of it. And, if you have any questions, our amazing 17hats support team is standing by ready to help.
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