Understanding a Profit and Loss Income Statement for Beginners
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- Опубліковано 1 чер 2021
- Are you new to learning your business numbers? Curious as to what this thing called a P & L is? Wondering what this income statement is that your bookkeeper / accountant has been giving you?
Your profit and loss income statement is one of the most critical pieces to your small business. It is your business’s report card.
Yes, there are a lot of numbers on it, but it doesn’t have to be hard. It is actually easy to understand as it is just showing you the flow of money in and out of your business.
Let’s take a quick look at what a profit and loss incomes statement is and how you can learn to read it in just a few minutes.
Here is a blank P&L that you can plug in numbers to create one. However, keep in mind that your bookkeeping system probably has the best one, but this can help you get started. I'll look at creating an even better tool in the future but this should at least help get you started. - babolearning.com/blankPandL
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FREE GUIDES / TOOLS
👉 FREE eGuide: 8 Steps to Earning $100,000 in Income in your small business - bit.ly/8Steps100k
👉 FREE eGuide: How to Read a Profit & Loss Statement - bit.ly/ReadPL
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Books I Recommend to All Small Business Owners - 5 Must Reads
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👉 Building a Storybrand by Donald Miller - amzn.to/3y5t0fS
👉 The ONE Thing by Gary Keller & Jay Papasan - amzn.to/3yciFi7
👉 The 12 Week Year - Brian Moran & Michael Lennington - amzn.to/3R54Smi
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COURSES to HELP YOU
👉 Understanding Your Business Numbers - KnowYourBusinessNumbersCourse.com
👉 Start a Local Small Business - StartASmallBusinessCourse.com
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TOOLS TO HELP YOU RUN A BETTER BUSINESS
👉 Housecall Pro: babolearning.com/housecallpro - Straightforward software for home service pros. Work simpler and grow smarter with Housecall Pro. Easily manage payments, link to Quickbooks, scheduling, dispatching, and more--all from one, convenient platform. Easy to Learn. Want more efficiency in your business? (not gonna lie - affiliate link) 😊 But I do believe in it’s ability to help your business!
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MORE:
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👉 DISCLAIMER: I am not an attorney, CPA, bookkeeper, insurance agent or financial advisor. My videos/podcast are for entertainment & educational purposes only and should not be construed as tax, legal, insurance or financial advice. Please seek out a qualified CPA, attorney, or specialist as needed. I’m sharing my experiences with my businesses and those I have worked for and/or helped coach.
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Here is a blank P&L that you can plug in numbers to create one. However, keep in mind that your bookkeeping system probably has the best one, but this can help you get started. I'll look at creating an even better tool in the future but this should at least help get you started. - babolearning.com/blankPandL
Sales-Coast to goods-Expensess=Profits
This was very helpful. I look forward to watching more of your content.
Awesome, thank you!
Thank you! Such and easy to understand video. Thanks for all your helpful info!
I'm glad you found it helpful! - :-). Tammy
Awesome content
easy to understand love love thank you so much
you're welcome! - Tammy
Great Content
Great video
Thumbs Up and Subscribed! 👍
Welcome aboard!
Thank you for the video....believe me when I say it is very helpful...Quick question: I operate my business virtually as a solopreneur, should the rent of my apartment be included in operational expenses?
Glad it was helpful! I'd speak to your tax person, there are different rules that you will want to make sure you abide by but it might just be possible but check with a local tax profession to make sure you comply. :-) - Tammy
Where can I find your Profit and Loss template that you have in your video to get started on my own P&L?
Great video and so helpful. I can't find the template. Is it still available?
Hey there. I'm having a brain poof moment, what template do I reference? LOL I Just zoomed through and can't find it but I might have missed it. Tammy
@@BadassBusinessOwners Yes, where is the P&L template to make our own?
@@PalmSpringsInDallas Here is the link to a basic P&L you could use. Ideally, you would use the one in your bookkeeping system but this can at least help get you started - babolearning.com/blankPandL
How to go about the scenario where the net operating income is negative (e.g. -5K) for the month. Should the owner be required to put it in 5K out from his own pocket to protect the business?
Good question. Typically what has happened is, the owner used retained earnings from previous months to cover the 5k. They would only need to add money if the actual business account was negative. It is common to see a negative profit month but paid from the previous month's profits. It also could be the business has sales coming in the next month to offset money they paid in advance. - Tammy
Where do I get more info about the know your business numbers course?
Hi there! Here is the page that talks about it in more depth. I appreciate you asking :-) - Tammy knowyourbusinessnumberscourse.com
*What is the Biggest Struggle You Face with Learning Your Business Numbers? - Tammy*