Ok, be honest. Do you know what a “P&L” is? If you are an entrepreneur and/or own a business, I would bet you do. If not, or you are starting your business, this blog is for you. Let’s start with the basics. The Profit and Loss, often referred to P&L, is also called an income statement. This statement shows you your revenue and expenses over a certain period of time. Some prefer reviewing this weekly, monthly or quarterly. Bottom line, you should be looking at this regularly. Along with your balance sheet, your ‘Tide Flow’ (remember this helpful cash flow/budgeting tool), your P&L provides a complete picture of your financial position.
Now that you know what a P&L statement is and does, what is included in it?
Understanding all of these numbers is easy when you are working with a professional bookkeeper. Any successful business owner will remind you, when you know your financials like the back of your hand, business gets better. It starts with knowing how your business is doing.
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