Aug 1, 2025
How to Read Your P&L in 5 Minutes: Owner’s Guide
Turn your P&L into decisions: where money comes from, where it goes, and what to fix first.
Open your Profit & Loss and scan top to bottom: revenue, COGS, gross margin, operating expenses, and net profit.
- Revenue: compare to last month and same month last year.
- COGS: track as % of revenue; rising COGS means pricing or vendor action.
- Gross margin: benchmark vs your target.
- Operating expenses: highlight payroll and advertising.
- Net profit: confirm you’re funding taxes and reserves.
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