{"id":80733,"date":"2022-12-22T07:52:53","date_gmt":"2022-12-22T15:52:53","guid":{"rendered":"https:\/\/honeybook.site.strattic.io\/?p=80733"},"modified":"2023-08-03T08:38:51","modified_gmt":"2023-08-03T15:38:51","slug":"how-to-make-a-profit-and-loss-statement","status":"publish","type":"post","link":"https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/how-to-make-a-profit-and-loss-statement","title":{"rendered":"How to make a profit and loss statement"},"content":{"rendered":"\n<p class=\"has-text-align-center\"><em>Learn how to make a profit and loss statement to track your independent business\u2019s growth and financial health over time.&nbsp;<\/em><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"793\" src=\"https:\/\/hbbadmin.reliablepenguin.com\/blog\/wp-content\/uploads\/2022\/12\/create-profit-and-loss-feature-1024x793.jpg\" alt=\"Person on computer working on a profit and loss statement with charts\" class=\"wp-image-80735\" srcset=\"https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2022\/12\/create-profit-and-loss-feature-1024x793.jpg 1024w, https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2022\/12\/create-profit-and-loss-feature-300x232.jpg 300w, https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2022\/12\/create-profit-and-loss-feature-768x594.jpg 768w, https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2022\/12\/create-profit-and-loss-feature-1536x1189.jpg 1536w, https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2022\/12\/create-profit-and-loss-feature.jpg 2000w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Financial statements are imperative to understanding your business success, or lack thereof. They give you a way to determine if you\u2019re generating a profit or a loss and what direction your company is headed financially.&nbsp; They also pinpoint inefficiencies that could affect your profitability.&nbsp;<\/p>\n\n\n\n<p>One of the most important financial statements to consider putting together regularly for your business is known as the <a href=\"https:\/\/hbbadmin.reliablepenguin.com\/blog\/profit-and-loss-statement\" target=\"_blank\" rel=\"noreferrer noopener\">profit and loss statement<\/a>, or simply the P&amp;L statement.\u00a0<\/p>\n\n\n\n<p>However, if you\u2019re like most new independent business owners, you may have never put together financial statements before. To get started, use our complete guide that will teach you <a class=\"wpil_keyword_link\" href=\"https:\/\/hbbadmin.reliablepenguin.com\/blog\/how-to-make-a-profit-and-loss-statement\" target=\"_blank\" rel=\"noopener\" title=\"how to make a profit and loss statement\" data-wpil-keyword-link=\"linked\">how to make a profit and loss statement<\/a>.<\/p>\n\n\n\n<p><strong>Jump to:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#what\">What is a profit &amp; loss statement?<\/a><\/li>\n\n\n\n<li><a href=\"#why\">Why you need a profit &amp; loss statement<\/a><\/li>\n\n\n\n<li><a href=\"#contents\">What should be included in a profit &amp; loss statement?<\/a><\/li>\n\n\n\n<li><a href=\"#track\">How to track profits &amp; losses<\/a><\/li>\n\n\n\n<li><a href=\"#categorize\">How to categorize your profit &amp; loss statement<\/a><\/li>\n\n\n\n<li><a href=\"#statements\">Other financial statements you should consider<\/a><\/li>\n\n\n\n<li><a href=\"#honeybook\">How HoneyBook can revamp your financial reporting<\/a><\/li>\n<\/ul>\n\n\n\n<a id=\"what\"><\/a>\n\n\n\n<h2 class=\"wp-block-heading\">What is a profit &amp; loss statement?<\/h2>\n\n\n\n<p>As its name suggests, a profit and loss statement is a report that outlines your company\u2019s profits and losses, which is why it\u2019s also called a profit and loss report.&nbsp;<\/p>\n\n\n\n<p>These reports are one of three crucial financial statements investors look for before investing in a publicly traded company. They\u2019re also essential for private companies and entrepreneurs because they give you a better understanding of your company\u2019s profitability and play a key role in overall <a href=\"https:\/\/hbbadmin.reliablepenguin.com\/blog\/small-business-financial\" target=\"_blank\" rel=\"noreferrer noopener\">financial management<\/a>. \u00a0<\/p>\n\n\n\n<p>P&amp;L statements go by many names, including:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Earnings report<\/li>\n\n\n\n<li>Income statement<\/li>\n\n\n\n<li>Expense statement<\/li>\n<\/ul>\n\n\n\n<p>Regardless of what you decide to call your P&amp;L statement, it\u2019s imperative to maintain one to keep track of your company\u2019s financial success.&nbsp;<\/p>\n\n\n\t\t<div data-elementor-type=\"section\" data-elementor-id=\"88924\" class=\"elementor elementor-88924\" data-elementor-post-type=\"elementor_library\">\n\t\t\t<div class=\"elementor-element elementor-element-99ad397 e-con-full cta_click e-flex e-con e-parent\" data-id=\"99ad397\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t<div class=\"elementor-element elementor-element-ec10187 e-con-full e-flex e-con e-child\" data-id=\"ec10187\" data-element_type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-c538a76 elementor-widget elementor-widget-image\" data-id=\"c538a76\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"404\" height=\"740\" src=\"https:\/\/hbb.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2023\/07\/cta-payments-banner-merino.png\" class=\"attachment-medium_large size-medium_large wp-image-88479\" alt=\"\" srcset=\"https:\/\/hbb.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2023\/07\/cta-payments-banner-merino.png 404w, https:\/\/hbb.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2023\/07\/cta-payments-banner-merino-164x300.png 164w\" sizes=\"(max-width: 404px) 100vw, 404px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-0d64de4 e-con-full e-flex e-con e-child\" data-id=\"0d64de4\" data-element_type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-8a918e8 elementor-widget elementor-widget-heading\" data-id=\"8a918e8\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<span class=\"elementor-heading-title elementor-size-default\">Get the free profit &amp; loss template<\/span>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dea38c1 elementor-widget elementor-widget-text-editor\" data-id=\"dea38c1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Use our free profit &amp; loss template to track revenue and expenses.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7cb141f click-profit-loss elementor-widget elementor-widget-button\" data-id=\"7cb141f\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Get the template<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n\n\n\n<a id=\"why\"><\/a>\n\n\n\n<h2 class=\"wp-block-heading\">Why you need a profit and loss statement<\/h2>\n\n\n\n<p>There are multiple benefits to building a profit and loss statement at least once annually, but there\u2019s no shame in making one quarterly. Some of the most important benefits, specifically for <a href=\"https:\/\/hbbadmin.reliablepenguin.com\/blog\/profit-and-loss-for-self-employed\" target=\"_blank\" rel=\"noreferrer noopener\">tracking self-employed revenue<\/a>, include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Adjust pricing and expenses:&nbsp;<\/strong>Your profit and loss statement shows you how much money you bring in and how much you spend to do so. This may prove to be an invaluable tool that allows you to adjust your pricing and cut expenses where possible to improve your bottom line.&nbsp;<\/li>\n\n\n\n<li><strong>Understanding your company:\u00a0<\/strong>It\u2019s wise to set profitability goals, but if you don\u2019t track your profits and losses, you\u2019ll never really know if you hit them. These statements give you a better understanding of <a href=\"https:\/\/hbbadmin.reliablepenguin.com\/blog\/3-areas-to-analyze-your-profit-loss-statement\" target=\"_blank\" rel=\"noreferrer noopener\">your company\u2019s financial performance<\/a>.\u00a0<\/li>\n\n\n\n<li><strong>Find inefficiencies:&nbsp;<\/strong>Once you build your profit and loss statement, you may find inefficiencies that you can improve upon to expand your profitability.&nbsp;<\/li>\n<\/ul>\n\n\n\n<a id=\"contents\"><\/a>\n\n\n\n<h2 class=\"wp-block-heading\">What should you include in a profit and loss statement?<\/h2>\n\n\n\n<p>There are multiple categories you should include in your profit and loss statement. We\u2019ll discuss categorization later in this guide on how to make a profit and loss statement later. Nonetheless, all categories you\u2019ll need to include fall into one of three larger categories. Those include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Income:&nbsp;<\/strong>This includes all the money you bring into your company from sales of goods or services.<strong>&nbsp;<\/strong><\/li>\n\n\n\n<li><strong>Expenses:\u00a0<\/strong>This includes all expenses associated with running your business. That means the cost of raw materials to create your product, the cost of manpower, and administrative costs.\u00a0Make sure you&#8217;re properly tracking your <a href=\"https:\/\/hbbadmin.reliablepenguin.com\/blog\/how-to-track-expenses-for-small-business-owners\" target=\"_blank\" rel=\"noreferrer noopener\">small business expenses<\/a> each month. <\/li>\n\n\n\n<li><strong>Profit or loss:&nbsp;<\/strong>Subtract your expenses from your income to determine your profit or loss for the period. For example, if you generated $250,000 in income and had $175,000 in expenses, your profit would be $75,000.&nbsp;<\/li>\n<\/ul>\n\n\n\n<a id=\"track\"><\/a>\n\n\n\n<h2 class=\"wp-block-heading\">How to track profits and losses<\/h2>\n\n\n\n<p>A profit and loss statement does nothing for you if it\u2019s inaccurate. So, it\u2019s essential to track your financials to ensure that when you build your P&amp;L statement, you\u2019re doing so with accurate numbers. You can either do so manually or use software-assisted tracking to streamline the process. Find the details on each option below.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Manual tracking<\/h3>\n\n\n\n<p>Using a spreadsheet provider like Excel or Google Sheets is the best way to take the manual approach to profit and loss tracking. When you build your spreadsheet, it should have three pages, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Income:&nbsp;<\/strong>Label the first page of your spreadsheet \u201cIncome.\u201d Every time you make a sale that drives income into your business, note the sale on your spreadsheet, including what you sold, the date of the sale, and the amount of money you generated.&nbsp;<\/li>\n\n\n\n<li><strong>Expenses:&nbsp;<\/strong>Label the second page of your spreadsheet \u201cExpenses.\u201d When you pay business expenses, note them on the sheet, including the name of the expense, the date of the expense, and the amount of money you spent.&nbsp;<\/li>\n\n\n\n<li><strong>P&amp;L:<\/strong> Label the third page of your spreadsheet \u201cP&amp;L.\u201d Use spreadsheet functions to subtract your total expenses from your total income to produce your profits or losses.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Software-assisted tracking<\/h3>\n\n\n\n<p>Manual tracking can become time-consuming quickly. That\u2019s especially the case if you have multiple expenses and produce more than a sale or two per week. Your time is worth money, and you don\u2019t want to waste it.&nbsp;<\/p>\n\n\n\n<p>The good news is that software solutions \u2013 like HoneyBook \u2013 automatically track your income and expenses so that you can focus on more critical business activities. HoneyBook also makes it possible to build your profit and loss statement with the click of a button and pull in your income from client payments inside the software.<\/p>\n\n\n\n<a id=\"categorize\"><\/a>\n\n\n\n<h2 class=\"wp-block-heading\">How to categorize your profit and loss statement<\/h2>\n\n\n\n<p>As mentioned above, your profit and loss statement should have several categories to make it easy to digest the information. These statements typically include the following categories:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Net sales:&nbsp;<\/strong>Net sales are the total amount of money you generate from the sale of goods or services. It differs from gross sales, which includes the amount of money you generate plus the money you didn\u2019t collect due to discounts, allowances, and returns.&nbsp;<\/li>\n\n\n\n<li><strong>Cost of goods sold:&nbsp;<\/strong>This is the amount of money you spend on raw materials and manpower to produce the goods or services you sold.&nbsp;<\/li>\n\n\n\n<li><strong>Gross margin:&nbsp;<\/strong>When you subtract your cost of goods sold from your net sales, the result is your gross margin. This shows you how much profit you generate without accounting for operating expenses.&nbsp;<\/li>\n\n\n\n<li><strong>Operating expenses:&nbsp;<\/strong>Operating expenses account for expenses associated with selling your product, like advertising and sales associate salaries. These expenses also include administrative costs.&nbsp;<\/li>\n\n\n\n<li><strong>Net profit:&nbsp;<\/strong>Your net profit is the total amount of money you generated or lost. This number is generated by subtracting your operating expenses and the cost of goods sold from your net sales.&nbsp;<\/li>\n<\/ul>\n\n\n\n<a id=\"statements\"><\/a>\n\n\n\n<h2 class=\"wp-block-heading\">Other statements you should consider<\/h2>\n\n\n\n<p>Although the profit and loss statement is arguably the most important financial statement to create for any business, it\u2019s not the only financial statement you should consider building. To get the best overall picture of your company\u2019s economic well-being, it\u2019s best to couple your P&amp;L statement with a balance sheet and a <a href=\"https:\/\/hbbadmin.reliablepenguin.com\/blog\/what-is-cashflow\" target=\"_blank\" rel=\"noreferrer noopener\">cash flow<\/a> statement.\u00a0<\/p>\n\n\n\n<p>Find the details of these financial statements below.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Balance sheet<\/h3>\n\n\n\n<p>A <a href=\"https:\/\/www.investopedia.com\/terms\/b\/balancesheet.asp\" target=\"_blank\" rel=\"noreferrer noopener\">balance sheet<\/a> is a financial statement typically produced by publicly traded companies, but it can help you better understand your company, even if you\u2019re just a startup entrepreneur. These statements include three key bits of information:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Assets:&nbsp;<\/strong>This section of a balance sheet outlines the value of the assets your company owns, like cash and cash equivalents, inventory on hand, real estate, equipment, and other business assets.&nbsp;<\/li>\n\n\n\n<li><strong>Liabilities:&nbsp;<\/strong>This section of a balance sheet outlines the debts your company owes. Liabilities include amounts owed but not yet paid for, like rent, utilities, and employee salaries. Liabilities also include other regular expenses, like interest you pay on bonds.&nbsp;<\/li>\n\n\n\n<li><strong>Shareholder Equity:&nbsp;<\/strong>Shareholder equity is the total amount of money the company would return to shareholders if it were to be liquidated and all debts paid off.&nbsp;<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Cash flow statement<\/h3>\n\n\n\n<p>A <a href=\"https:\/\/online.hbs.edu\/blog\/post\/how-to-read-a-cash-flow-statement\" target=\"_blank\" rel=\"noreferrer noopener\">cash flow statement<\/a> is a financial document that shows how much cash enters and leaves your company. Cash flow statements are important because they outline how well you\u2019re managing your company\u2019s money.\u00a0<\/p>\n\n\n\n<p>These statements also show your company\u2019s ability or failure to generate cash fast enough to pay its debts and fund its operations. These statements typically include four main components:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Cash flow from operating activities:&nbsp;<\/strong>This is a fancy way of saying cash flow from sales.&nbsp;<\/li>\n\n\n\n<li><strong>Cash flow from investing activities:&nbsp;<\/strong>This section outlines your company&#8217;s return on investments it has made.&nbsp;<\/li>\n\n\n\n<li><strong>Cash flow from financing activities:&nbsp;<\/strong>This includes any additional income you\u2019ve generated by providing financing options to your customers.<\/li>\n\n\n\n<li><strong>Disclosure of non-cash activities<\/strong>: This includes trading your product or services for another company\u2019s product or service.&nbsp;<\/li>\n<\/ol>\n\n\n\n<a id=\"honeybook\"><\/a>\n\n\n\n<h2 class=\"wp-block-heading\">How HoneyBook can revamp your financial reporting<\/h2>\n\n\n\n<p>If you\u2019re looking for a simple solution for creating the financial statements your company needs, look no further; you\u2019ve found HoneyBook. HoneyBook is a clientflow management platform specifically developed for entrepreneurs and independent businesses.\u00a0<\/p>\n\n\n\n<p>You can sell your services and book clients faster with HoneyBooks templates for sales brochures, pricing guides, contracts, invoices, and much more. With integrated <a class=\"wpil_keyword_link\" href=\"https:\/\/hbbadmin.reliablepenguin.com\/blog\/payment-processing\" target=\"_blank\" rel=\"noopener\" title=\"payment processing\" data-wpil-keyword-link=\"linked\">payment processing<\/a>, your clients also don\u2019t have to switch services just to book you.&nbsp;<\/p>\n\n\n\n<p>With all your payments in one place, it\u2019s easier to track your profit and analyze it with your expenses. HoneyBook also integrates with Quickbooks to help you automate your accounting even further.&nbsp;<\/p>\n\n\n\n<div class=\"aligncenter wp-block-ugb-container ugb-container ugb-6bb1d93 ugb-container--v2 ugb-container--design-basic ugb-main-block\"><style>.ugb-6bb1d93-wrapper.ugb-container__wrapper{border-radius:12px !important;background-image:url(https:\/\/hbbadmin.reliablepenguin.com\/blog\/wp-content\/uploads\/2023\/03\/Banner-CTA-Background2.jpg)}.ugb-6bb1d93-wrapper.ugb-container__wrapper:before{opacity:0.5}<\/style><div class=\"ugb-inner-block\"><div class=\"ugb-block-content\"><div class=\"ugb-container__wrapper ugb-6bb1d93-wrapper ugb--has-background-overlay\"><div class=\"ugb-container__side\"><div class=\"ugb-container__content-wrapper ugb-6bb1d93-content-wrapper\">\n<h2 class=\"wp-block-heading has-text-align-center\"><strong>Manage your entire clientflow with HoneyBook<\/strong><\/h2>\n\n\n\n<p class=\"has-text-align-center\">When you manage the full process of selling and delivering your services in one place, it&#8217;s easier to track profit and loss.<\/p>\n\n\n\n<div class=\"wp-block-ugb-button ugb-button-wrapper ugb-9def6fd ugb-main-block\"><style>.ugb-9def6fd .ugb-button1{background-color:#000000}.ugb-9def6fd .ugb-button1 .ugb-button--inner,.ugb-9def6fd .ugb-button1 svg:not(.ugb-custom-icon){color:#ffffff !important}<\/style><div class=\"ugb-inner-block\"><div class=\"ugb-block-content\"><div class=\"ugb-button-container\"><a class=\"ugb-button1 ugb-button ugb-button--size-normal\" href=\"https:\/\/hbbadmin.reliablepenguin.com\/online-payment-software\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"\"><span class=\"ugb-button--inner\">Try it for free<\/span><\/a><\/div><\/div><\/div><\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn how to make a profit and loss statement to track your independent business\u2019s growth and financial health over time.&nbsp; Financial statements are imperative to understanding your business success, or lack thereof. They give you a way to determine if you\u2019re generating a profit or a loss and what direction your company is headed financially.&nbsp; [&hellip;]<\/p>\n","protected":false},"author":840,"featured_media":80735,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[26],"tags":[349,350,107,195],"class_list":["post-80733","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-tips","tag-accounting","tag-bookkeeping","tag-business-tips","tag-finances"],"acf":[],"featured_image_urls_v2":{"full":["https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2022\/12\/create-profit-and-loss-feature.jpg",2000,1548,false],"thumbnail":["https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2022\/12\/create-profit-and-loss-feature-150x150.jpg",150,150,true],"medium":["https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2022\/12\/create-profit-and-loss-feature-300x232.jpg",300,232,true],"medium_large":["https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2022\/12\/create-profit-and-loss-feature-768x594.jpg",768,594,true],"large":["https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2022\/12\/create-profit-and-loss-feature-1024x793.jpg",1024,793,true],"1536x1536":["https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2022\/12\/create-profit-and-loss-feature-1536x1189.jpg",1536,1189,true],"2048x2048":["https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/wp-content\/uploads\/2022\/12\/create-profit-and-loss-feature.jpg",2000,1548,false]},"post_excerpt_stackable_v2":"<p>Learn how to make a profit and loss statement to track your independent business\u2019s growth and financial health over time.&nbsp; Financial statements are imperative to understanding your business success, or lack thereof. They give you a way to determine if you\u2019re generating a profit or a loss and what direction your company is headed financially.&nbsp; They also pinpoint inefficiencies that could affect your profitability.&nbsp; One of the most important financial statements to consider putting together regularly for your business is known as the profit and loss statement, or simply the P&amp;L statement.\u00a0 However, if you\u2019re like most new independent business&hellip;<\/p>\n","category_list_v2":"<a href=\"https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/category\/finance-tips\" rel=\"category tag\">Finance tips<\/a>","author_info_v2":{"name":"Joshua Rodriguez","url":"https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/author\/joshua-rodriguez"},"comments_num_v2":"0 comments","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How To Make A Profit And Loss Statement For 2022 | HoneyBook<\/title>\n<meta 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