A profit and loss statement tells you how a business or department is performing, but only if you understand its terms and layout. This 90-minute P&L training explains revenue, sales and valuation; costs, expenses, EBIT and EBITDA; and gross, operating and net profit.

You'll review different types of profit and loss statements, including a QuickBooks standard layout as a complex multi-fund example, and see how your chart of accounts affects individual lines. You'll learn when to review each set of numbers, what they show and which areas external business partners care about.

The session also covers comparing periodic reports to analyze growth or loss, where to look for typical problems and simple fixes, and questions to ask yourself and your accountant.

WHY SHOULD YOU ATTEND?

Many owners and executives have stacks of reports they never read because the numbers don't make sense to them. For small businesses the P&L also serves as the income statement, and you'll need two to three years of them to apply for credit or a loan or to sell the business.

This session suits owners, executives, entrepreneurs, non-profit and grant managers, board members, managers, business brokers and investors.

AREA COVERED

• Critical elements of a profit and loss statement
• Revenue, sales, valuation and profit, and when to use each number
• Costs, operating expenses, EBIT and EBITDA
• Gross profit, operating profit and net profit
• The profit and loss statement as an income statement
• Types of P&L, including a QuickBooks multi-fund standard layout
• How the chart of accounts affects P&L lines
• Finding losses: spending more or earning less
• Why more revenue is not always growth
• Comparing periodic reports and spotting typical problems
• How often to run and review a P&L
• Questions to ask yourself and your accountant

LEARNING OBJECTIVES

• Explain the key terms on a profit and loss statement, including EBIT and EBITDA
• Tell revenue, sales and valuation apart and know when to use each
• Distinguish gross, operating and net profit
• Read different P&L layouts and see how the chart of accounts shapes them
• Compare reports over time to tell real growth from higher revenue
• Find where losses come from
• Decide how often to review a P&L and what to ask your accountant

WHO WILL BENEFIT?

• CEO, COO, Company Owners
• Small Business Owners
• Entrepreneurs, Sole Proprietors, Self-Employed Professionals
• Non-Profit Organizations
• Grant Managers and Fund Directors
• Business Management Professionals
• Vice Presidents, Directors, and Senior Officers
• Managers/Supervisors
• Board Directors/Members
• Business Brokers
• Investors or other Business Buyers