Profit and Loss Monthly Scorecard

Let’s check out the odds…

3 out of 10?

4 out of 10?

Based on my (very) unscientific research over the last twenty years, I’m finding about 3 to 4 out of every 10 small businesses are getting a timely and accurate profit and loss report each and every month.

Special emphasis on these words – timely and accurate.

THE PROFIT AND LOSS REPORT – A MUST HAVE FOR YOUR BUSINESS EVERY MONTH!

At it’s core, a profit and loss report (or P+L if we’re being casual) will recap these critical metrics in your business every month:

  • Total sales/revenue
  • Total cost of goods sold (or COGS)
  • Gross profit (Total sales – Total COGS)
  • Total expenses
  • Net profit (Gross profit – Total expenses)

Without this key data, it’s a bit like driving a car without a speedometer or GPS. You have no idea where you are going or how you are going to get there! (and we know how that turns out, right?)

via GIPHY

IS YOUR PROFIT AND LOSS BOTH TIMELY AND ACCURATE?

Sadly, I see this all too often – the business hands off their financial information