The Profit & Loss (P&L) is one of the key monthly management reports which tells you how you are doing financially, for a month and for the year to date.
It can help you see if you are on track to make a profit for the year, and show you areas to look at in order to help you control your costs.
As a business owner you are always keen to know if you can employ more staff or if perhaps you are employing too many staff, your profit and loss will help you to make this decision. It also allows you to pinpoint and focus in on other areas of your business that need attention, so you can deal with problems quickly and keep your business on track and growing.
Continue reading “Understanding Accounting & Finance, Part 2 – The Profit & Loss Report.”