Generate monthly profit and loss statements

A profit and loss statement (P&L) is the single report that tells you if the business made money this month. Generating it monthly turns your bookkeeping into real decisions instead of just data.

Do this

1. In your accounting software, run the Profit & Loss report for last month.
2. Read it top to bottom: revenue, cost of goods, expenses, net profit.
3. Compare it to the month before — what moved and why?
4. Save it each month so you build a track record.

How to Read Your P&L

A P&L has three parts, top to bottom:

REVENUE — all money earned − COST OF SALES — what it cost to deliver (materials, direct labor) = GROSS PROFIT — what's left to run the business − EXPENSES — rent, software, marketing, admin = NET PROFIT — what you actually kept

Run it monthly. The story is in the changes: which line grew, which leaked.