Net Income reports, often called profit and loss (P&L) reports, are standard accounting reports designed to show revenue, total expenses, and what is left over, or "net."

These reports help you understand your business's financial health, give a better view of where to cut costs, and aid in strategic decisions when planning to scale your investment portfolio.

Some important things to know:

The P&L reports do NOT reflect asset purchases via manual journal or fixed asset purchase. Fixed asset purchases are not considered expenses as they are not immediately deductible in the same tax year but have long-term deductible depreciation.
Debt service is not included in the P&L. Principal repayment on loans is not considered an expense in the eyes of the IRS, but mortgage interest is. REI Hub has an automatic mortgage interest expense account that populates on the P&L when loan payments are booked.
Escrow transfers will not be reflected in the P&L statements. Instead, only actual expenses for property taxes and insurance will be included when they are manually entered in REI Hub. Read more about booking your annual expenses from escrow here.

The Net Income By Property

By far our most popular report, the Net Income By Property will show the total revenues and expenses, as well as these revenues and expenses divided into columns for each property.

For a breakdown of the columns:

The Total column populates the same amounts as the revenues and expenses for the entire portfolio.
The Property column will populate the revenues and expenses that have had the property applied as the transaction scope. The vast majority of transactions booked in REI Hub will be applied to the property level. A column will populate for each property entered in REI Hub.
The None Assigned column refers to any transaction that has been booked without applying a property to it or has been specifically applied to the portfolio (or sub-portfolio, depending on your scope selection) level. This is best used when categorizing expenses that help with a whole business, not just one property. Some examples include legal fees or your REI Hub subscription.

The blue numbers on these reports are clickable! Click the number to view the transactions populating the amount shown.

Reporting Scopes

The Net Income reports show five filtered views:

Net Income (Profit & Loss): The Net Income (P&L) report can be pulled for the entire portfolio or for a specific view of one property at a time.
Net Income By Property: The Net Income By Property report shows the total net income and columns splitting this total amount among the individual properties.
Net Income By Sub-Portfolio: Similar to the Net Income By Property report, this shows the total net income for the properties specifically grouped in the sub-portfolio, as well as columns for each of those properties and any revenues/expenses applied to the sub-portfolio level. In this report scope, None Assigned refers to the business-level expenses to operate these grouped properties respectively.
Net Income By Unit: The Net Income By Unit report shows a total net income for the entire property, as well as columns splitting this out for each unit. The None Assigned column here refers to any revenues or expenses applied to the property level, but applied to "all units" instead of one exclusively.
Net Income By Period: The Net Income By Period report shows the total net income for the specified scope (full portfolio, property, or unit) and aggregates the transactions either monthly, quarterly, or annually.

Curious to how the Net Income reports compare to the Schedule E report? Click here to learn about the big differences of our two most popular reports.

To View Your Net Income Reports

1) Navigate to the reports page and choose the report that matches your needs

2) Select the Date Range and Report Scope

For the Net Income by Period report, additionally select the desired Reporting Period (Monthly, Quarterly, Annually).

3) View and Export the Report

The Net Income reports can be exported into Excel or PDF, downloaded directly to a computer, or emailed.