Where Is the Profit Coming From — Nexto Profit Reports

Everybody asks what the total profit was, but the better question is where it came from — because only that tells you what to do next month. Four Nexto reports answer it, and this episode shows what each one is good for, plus the one step you must run before trusting any of the numbers.

What you will learn

• Which of the four profit reports answers which question
• How to read the monthly report and its balance-sheet summary
• Why revaluation must come before you read profit figures
• Why the profit and loss report needs its own permission
• How customer profitability changes your pricing decisions
• How the commission report separates fee income from trading profit

Step by step

1. Start with the monthly report — the shortest one

You give it a date range and at the top you see the profit and loss for that range: trading profit, commission income, other income, expenses, and finally the net profit.

2. Read the balance-sheet summary underneath

Underneath is a summary of where you stand right now: treasury, what customers owe you, what you owe customers, capital, and net assets. It is the snapshot to go with the period figures above it.

3. Run a revaluation first

The small line below the summary matters a great deal: all these amounts are converted at the mid rate, so for full accuracy run a revaluation first — the step covered in /learn/rates-revaluation. Do it before you read the monthly report, not after.

4. Open profit and loss for the detail

The profit and loss report gives you the same table in more detail, and it has one important property: seeing it needs its own permission. So you can have a user who records everything but cannot see your profit — set up in /learn/users-backup.

5. Look at customer profitability

For each customer: the number of trades, the volume, the profit, and the average profit per trade. This table sometimes shows you something you were not expecting — a customer with big volume but thin margins, next to a small customer whose every trade leaves a decent profit behind.

6. Split fees from trading profit with the commission report

The commission report separates fees from trading profit and shows them by source: trades, transfers, payment commitments and deposit requests. If a good part of your income is commission, this is the table to look at once a month.

7. Compare traders with the bonus report

For offices with several traders, the trader bonus report shows how many trades each did, what volume they brought, and how much profit they produced. Look at the user activity page alongside it; it shows the same thing from the day-to-day side — who recorded how many documents, who logged in how often. The in-app page help (the ? icon at the top of the page) has more detail.

Tips

• Never read the monthly report before running the revaluation. Without it the figures are converted at the mid rate and will not be exact.
• The profit and loss report is permission-gated on purpose. Use that: a trader can record every document without ever seeing your margins.
• Customer profitability is where your pricing decisions come from. Big volume and thin margins is a conversation, not a compliment.

FAQ

Why does the monthly report tell me to run a revaluation?

Because all its amounts are converted at the mid rate. Revaluation pins your currency balances to the rate first, so the profit and net asset figures you read afterwards are solid rather than approximate.

What is the difference between the monthly report and profit and loss?

The monthly report is the short version for a date range, with a balance-sheet summary underneath. Profit and loss gives you the same table in more detail — and, unlike the monthly report, it requires its own permission to open.

How do I stop staff from seeing my profit?

Give them a role or custom permissions that record documents but exclude the profit and loss permission. That setup is covered in the users, permissions and backup episode.

Which report tells me how much of my income is fees?

The commission report. It separates fee income from trading profit and breaks it down by source — trades, transfers, payment commitments and deposit requests.