Read your profit and loss report in five minutes
Your profit and loss report answers one question: did the business make money? Here is how to read it line by line, and the five questions to ask it every month.
Blog Money and bookkeeping
Cash flow, pricing, profit and keeping clean records.
Your profit and loss report answers one question: did the business make money? Here is how to read it line by line, and the five questions to ask it every month.
Busy shop, small profit? The problem is often the price. Learn your true cost, the difference between markup and margin, and how to set retail and wholesale prices that pay.
When the shop drawer is also your household purse, you never really know if the business is making money. Here is a simple way to separate the two and pay yourself properly.
Your report says you made a profit, yet the drawer is empty when the supplier comes. Here is where the money goes, and how to get more of it back in your hand.
Credit keeps good customers coming back, but unpaid debts can quietly empty your shop. Here is how to decide who gets credit, set clear terms and collect what you are owed.
You do not need to be an accountant to keep good books. Keep these five records well and you will always know if your shop is really making money.
Ready when you are
Create your business, add products, and bring sales, stock, orders, reports, and payouts into one clean workspace.