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SettleWise

Income Statement

Review budget, actual, and variance across revenue, costs, expenses, and operating result inside Accounting

Income Statement is the default Accounting section. It turns the shared account layer into a financial view your team can use to understand revenue, operating spend, and variance by period.

In the app, Accounting opens to Income Statement first. Budgets and Chart of Accounts are the other two sections inside the same Accounting workspace.

What It Shows

AreaWhat it answers
RevenueHow much validated payment activity is recognized for the period
Costs and expensesWhich account groups are driving operating spend
Budget vs actualWhere actual account activity is above or below plan
VarianceHow far each account group is from the budgeted amount
Operating resultWhether the period is trending profitably on a cash basis

Where the Numbers Come From

Income Statement reads account-based activity:

  • Validated payments can post revenue actuals through the register and revenue accounts
  • Completed payouts can post expense actuals through payout lines and the payout register
  • Budgets provide planned amounts for comparison
  • Chart of Accounts provides the account hierarchy used to group rows

The V1 income statement is cash basis. Creating an invoice does not recognize revenue by itself. Revenue appears when payment cash is validated into a register and posted to revenue accounts.

Read the Statement

  1. Confirm the period and remember the view is cash basis.
  2. Start with operating result, then inspect revenue and expense groups.
  3. Compare actual with budget and identify the largest variances.
  4. Expand the relevant group to its posting accounts.
  5. Open account detail and trace unusual activity to the source payment or payout.

Why a Number May Be Missing

  • An invoice without a validated payment does not create cash-basis revenue.
  • A pending payout does not create an expense actual.
  • Activity assigned to another account appears under that account's parent.
  • A register without the correct backing account can prevent a complete posting.
  • A transaction outside the selected period is excluded.

Use the Income Statement to investigate operating results, not as the only reconciliation source. Confirm material numbers against account detail and their source records.

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