Understanding a P&L in 8 minutes (Income statement/profit & loss stmt)

In 8 minutes, you'll understand the basics of one of the most useful financial tools - the income statement (otherwise known as the Profit & Loss (P&L) statement). It can be used professionally or personally, ensuring profitability and building wealth!
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[@mjay5983]

Ive gotta admit you made it so much easier for someone with no degree and trying to learn the basic book keeping for my new job, please keep posting I cant thank you enough
And how on earth you do not have millions of subscribers.

[@DrKTheManagementProfessor]

Thank you so much for your kind words! I hope you enjoy my channel! :)

[@loop4430]

Very smart and simple way to explain! Thank you

[@DrKTheManagementProfessor]

Thanks for your favorable feedback, and I'm glad you found it helpful!

[@jrccandleco7939]

Wow!!!! Amazing video!!! I needed this!! Thank you❤

[@davehansel9715]

Thanks for the simplified explanation. I currently use Someka's P&L statement template that runs on Google sheets and it's really well designed, detailed and easy to use. Thank you.

[@DrKTheManagementProfessor]

Thank you Dave for your feedback! I'm glad you found the video helpful and appreciate the resource!

[@updatedaytoday4531]

Thank you mam I learn p & l in a simple way thank you so much

[@DrKTheManagementProfessor]

I'm glad I could help. Thank you for the feedback!

[@afrovibes3225]

That was so well done; thanks. I'm a new subscriber now!

[@DrKTheManagementProfessor]

Thanks for your kind words and thanks for subscribing!

[@billdemaineiii6979]

Thank you 🙂✨ I think that was really well done. Again… thank you so much 🏆✨

[@DrKTheManagementProfessor]

Thank you for the feedback Bill! I'm glad you found this video helpful!! :)

[@dawnprayer5205]

everything is so simple ,i like that, usually people hate complicated things , its great topic to know ,we hope if you can share the excel sheet .

[@DrKTheManagementProfessor]

Thank you! You may find this video helpful also: ua-cam.com/video/z0lutSmLoRU/v-deo.html

[@el3qidfayed553]

It's completely awesome, thanks alot for easy explanation

[@DrKTheManagementProfessor]

Thank you for the feedback, and I'm glad you enjoyed it!

[@mweempemuleya8138]

This really helped me on my examination thank you once again❤

[@DrKTheManagementProfessor]

You're welcome!

[@tashlikesmakeup]

Thank you for this!

[@DrKTheManagementProfessor]

I'm glad you found it helpful, and thanks for your positive feedback!

[@aliciouskross]

This is very helpful, thank you so much Dr K

[@DrKTheManagementProfessor]

I'm glad you found it helpful! :)

[@glennclark]

Thank you for sharing this method 🙏🏻❤️

[@DrKTheManagementProfessor]

Glad you enjoyed it, and thanks for your feedback!

[@glennclark]

@@DrKTheManagementProfessor it’s big help for me being Manager of the restaurant 🙏🏻🙏🏻🙏🏻by the way if you have any song request i will play for you ❤️

[@DrKTheManagementProfessor]

@@glennclark Feel free to share it with your employees so they understand the impact of their actions and encourage them to subscribe to my channel!

[@nguetchanjionou2292]

thanks very much i have now understand the profit and lost account

[@DrKTheManagementProfessor]

Happy to help and thanks for your feedback!

[@nguetchanjionou2292]

@@DrKTheManagementProfessor please can you post a vídeo on How to solve a balance sheet?

[@wiseguise5960]

Pretty straight forward. Although at 6:28 y'all could've edited that "Uhm..." out.

[@DrKTheManagementProfessor]

Thanks! :)

[@mweempemuleya8138]

Thank you for the help you are the best❤❤

[@DrKTheManagementProfessor]

You are very welcome! I'm glad you found it helpful!!

[@_noobXD]

Thanks

[@DrKTheManagementProfessor]

You're welcome!

[@markeithgreen4506]

Thank you

[@DrKTheManagementProfessor]

You're welcome!

[@highervybzbeautyandwellness]

I liked this

[@DrKTheManagementProfessor]

Thank you for your feedback!

[@aasalratnagirikarvlogs]

Well explained

[@DrKTheManagementProfessor]

Thank you!

[@beaujamie2661]

Instablaster

[@FULLMOON322]

What I am confuse is having a negative balance on the account. Is that a credit balance sat on the account or it is a loss? Its a bit confusing for me

[@DrKTheManagementProfessor]

I'm not sure which line you're referring to, but at a high level, if you have more revenue than expenses, it's a profit. If you have more expenses than revenue, it's a loss. Debits and credits are for Balance Sheets, in general.

[@marybenjamin-qb3kp]

Hey ,, discount allowed is an expense or not

[@BrianteWhite]

How do you Excel? I made one like this but need to know how to get the total

[@DrKTheManagementProfessor]

On the Home tab, to the far right is the AutoSum button. That will automate how you add a column or row. If you need more help, hit F1 and type "Autosum" - good luck! :)

[@tiwalorianne7359]

Will rents receive by organization be an income or expense?

[@DrKTheManagementProfessor]

If money is being paid to you, it is income. If you are paying money out, it is an expense. :)

[@lowmett2165]

Hello. If Income statement data from QuickBooks and tax return are different, is this normal?

[@DrKTheManagementProfessor]

I would verify that all of your line items are accounted for; it could be a misclassification/reclass if they are the same. There's tax accounting and managerial accounting, so you'll want to figure out if that could be what's happening. Otherwise, I'd seek professional tax advice.

[@DungNgo-or5lo]

The balance on an expense account will go to the P/L account. However, the balance on a liability accounts is written off to capital. It's True or False ???
Please help me :(((

[@TheAboriginal1]

No, a charge off of a liability on the balance sheet will be some form of expense or loss on the income statement.

[@neshebaadams]

Im in the g
Hospitality field..trying to read the P& L ughhhhh

[@DrKTheManagementProfessor]

It can be tough! Think of it as a story - What brings in money goes in the top section (there, it's just categorized resulting in a bunch of line items), and everything paid out is itemized in the bottom section. You want to be sure you're bringing in more money than you're spending each month. Hopefully that helps - good luck! :)

[@biblebloopers946]

What about gross profit? How come this was kind of skipped?

[@DrKTheManagementProfessor]

There was much more detail to share, but wanted to convey the understanding of a P&L and how to use it.

[@biblebloopers946]

@@DrKTheManagementProfessor
Thank you I appreciate that. I'm just learning about this stuff. I'm starting my own small residential HVAC company and your video is helping me understand this better. But then I watched another video and they talked about gross profit which confused me cuz I didn't see it included here

[@shaungorham5479]

03.

[@tradersmind1456]

Not explained EBITDA? Who will explained about taxes?

[@TheAboriginal1]

EBITDA is not GAAP. EBITDA is a construct of the banking industry.

[@pauldickinson5316]

I don't see how $24000 is just under $50000 when it's less than half? Please explain why you didn't just say an annual income of $24000.

[@DrKTheManagementProfessor]

The $24K is a net number. Meaning, this person makes more money but has deductions for medical, taxes, social security, life insurance, 401(K), etc. The $50K is a gross number. According to the employer, this employee earns $50K.

[@caged_muscle]

So that's all you could take from the whole video????

[@deezplace]

4:08 $50k ?

[@DrKTheManagementProfessor]

Yes, it's after you max your 401(K), pay your family healthcare expenses, taxes, and all other deductions. It's conservative.

[@blitxwhx_x]

Thank you

[@DrKTheManagementProfessor]

You're welcome!

[@lisayerry3694]

Thank you

[@DrKTheManagementProfessor]

@lisayerry3694 You're welcome! I'm glad you found it helpful! :)