Drive Your Profits Course

Business owners and CEOs use the profit and loss statement the most of the three main financial statements. If it is structured and understood correctly, it can be a significant resource to driving the profits of the company to new levels.

The training begins with the basic structure of the profit and loss statement, which includes sales, direct costs, indirect costs, and selling, general, and administrative costs. We discuss the elements of properly recognizing revenue and direct costs as they relate to the matching principle and other accounting best practices. This includes an understanding of the gross margin of the firm and how to improve it.

Another important element of the profit and loss statement is breaking-up the variable from the fixed costs and calculating the break-even point of the company. Additional reports derived from the profit and loss include budget vs. actual analysis and prior period and year comparisons