Get Off the Struggle Bus: Understanding Your Profit & Loss Without the Panic
If the phrase “P&L statement” makes you want to immediately open a new browser tab and scroll Instagram instead, you’re not alone. But here’s the truth: understanding your Profit & Loss report is one of the most empowering things you can do as a business owner, especially if you want to stop winging it and start growing with intention.
This post will break it down simply, with no jargon and no shame. Let’s make sense of the numbers, babe.
What is a P&L (Profit & Loss) Statement?It’s a snapshot of your business income and expenses over a set period (usually monthly or quarterly). It shows:
Revenue (everything you’ve brought in)
Cost of Goods Sold (COGS) (what it costs to deliver your product or service)
Operating Expenses (subscriptions, marketing, office rent, software, etc.)
Net Profit (what’s actually left after expenses)
Why It Matters:A P&L helps you make smart, data-informed decisions and shows you exactly where your money is going. Your accountant will love you for the help with tax prep, and most importantly, it gives you clarity on what’s working, and what’s just draining you (financially and energetically).
What to Look For in Your P&L This Fall:Is your profit margin healthy? (Compare revenue to expenses—are you paying yourself?)
Which expenses can be cut or renegotiated?
Are there offers generating high revenue but low profit?
Are you allocating funds toward growth (ads, team, systems)?
How does this quarter compare to last quarter or last year?
Tools to Help:While we definitely recommend a knowledgeable, local bookkeeper or accountant who is happy to explain (not intimidate), Wave or QuickBooks can be helpful tools to analyze simple reports. Or event just a spreadsheet template (you can DIY or download a free version).
Your First Steps:Run your P&L for the year so far.
Highlight three surprises.
Pick one financial action to take this month (like raising a price, canceling a subscription, or tracking mileage better).
You don’t have to be a numbers person, you just have to be a business owner who cares about sustainability (and if you’re reading this, we know you’re already on the right track).