[VIDEO] How to make your Profit & Loss Statement Work For You

I am often asked by clients what a profit and loss does; what it actually tells you and what it should actually look like. The normal Profit and Loss Statement is basically a record of all your income and all your expenses; for example a normal Profit and Loss Statement has one income account, and a whole long list of all your expenses. Most of the expenses are listed in alphabetical order which tells you absolutely nothing. You then have one figure right at the bottom which tells you what your net profit is.

In other words you can see:

  1. how much you’ve earned;
  2. the cost to generate that income and the running of your business, and;
  3. your net profit figure at the bottom.

So at the end of this type of Profit and Loss Statement all you really know is what you’ve earned in a total figure, the total amount of your costs and what you’re left with. So how do you really make your Profit and Loss Statement work for you?

Watch the video for my tips!

 

 

These recommendations on how to change your profit and loss aim to give you more information and detail which you need to make informed REAL decisions in your business.

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