How to Read Your P&L in 5 Minutes: Owner’s Guide

Open your Profit & Loss and scan top to bottom: revenue, COGS, gross margin, operating expenses, and net profit.

1. Revenue: compare to last month and same month last year.
2. COGS: track as % of revenue; rising COGS means pricing or vendor action.
3. Gross margin: benchmark vs your target.
4. Operating expenses: highlight payroll and advertising.
5. Net profit: confirm you’re funding taxes and reserves.

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