What is a Profit & Loss Report with Department Comparisons?
Financial statements with organizational units in the columns are considered comparative reports and are often used by accountants and department managers to get a side-by-side view of how one department is doing versus another. Some of the key functionality in this type of report is that it automatically lists selected departments across the columns with a consolidated total. The rows in the report has a normal P&L layout. The charts on the right side help with the analysis. You find an example of this type of report below.
Purpose of Comparative Profit & Loss Reports
Companies and organizations use Comparative Profit & Loss Reports to easily compare how each department are doing versus the others, both for revenues and expenses. When used as part of good business practices in a Finance and Accounting Department, a company can improve its account-level analysis as well as reduce the chances that one department becomes an outlier without anyone taking notice, for example when it comes to certain expenses.
Comparative Profit & Loss Report Example
Here is an example of a Profit & Loss Report with departments listed across the columns.
You can find hundreds of additional examples here
Who Uses This Type of Report?
The typical users of this type of report are: CFOs, Controllers and Accountants.
Other Reports Often Used in Conjunction with Comparative Profit & Loss Reports
Progressive Finance and Accounting Departments sometimes use several different Comparative Profit & Loss Reports, along with regular financial statements and other management and control tools.
Where Does the Data for Analysis Originate From?
The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others.
In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.
What Tools are Typically used for Reporting, Planning and Dashboards?
Examples of business software used with the data and ERPs mentioned above are:
- Native ERP report writers and query tools
- Spreadsheets (for example Microsoft Excel)
- Corporate Performance Management (CPM) tools (for example Solver)
- Dashboards (for example Microsoft Power BI and Tableau)
Corporate Performance Management (CPM) Cloud Solutions and More Examples
- View 100â€™s of reporting, consolidations, planning, budgeting, forecasting and dashboard examples here
- See how reports are designed in a modern report writer using a cloud-connected Excel add-in writer
- Discover how the Solver CPM solution delivers financial and operational reporting
- Discover how the Solver CPM solution delivers planning, budgeting and forecasting
- Watch demo videos of reporting, planning and dashboards