202 - Explaining a Profit & Loss

This episode is brought to you by my new program The Profit Rx. If you've been following along here on the podcast, you know that the doors opened to the Profit Rx officially, a couple of weeks ago. The Profit Rx is your prescription to help you build a healthy and wealthy business. Help you avoid that financial anxiety. pay yourself more. tackle your taxes. All of these good things. For all of the information you can go to theprofitrx.com. You can join us on our twice weekly Co-working calls, Finance Fridays, get all of the good stuff, so go check it out.

In today's episode. I am going to be explaining to you all about the profit and loss statement, so what a P&L is, Um, how they work and in order to do that, I'm actually going to be walking you through an excerpt of our Profit Rx textbook.

So a P&L, or a profit and loss is also often referred to as an income statement. That's like the more official term for most accountants, but I like P&L, because it's shorter to say, and also, profit and loss is pretty clear as to what it is that we're covering a profit.

A Profit & Loss, or P&L for short, is created by and for your own company. It's typically not submitted anywhere. The P&L shows a snapshot of income, expenses and profit. If prepared correctly, it shows your self-employment income from that business. So in our book I have a snaps shot of a P&L. I'm going to kind of describe it to you, since obviously you cannot see it.