For business owners, there are many important documents to learn to read. One of the most important is the profit and loss statement, known as the P&L, and the balance sheet.
Sentiment: POSITIVE
The Profit and Loss Statement tells you a lot about how your business is doing. It can also help you to determine ways that you can go about saving money so that you get to bring more money home! Basically, the P&L statement measures all of your income sources verses all your business expenses for any given period of time.
Learning how to keep track of inventory and cash flow and creating an income statement and a balance sheet are great skills to learn for managing existing businesses.
Our balance sheet provides us with the ability to act on investment opportunities in appropriate areas that diversify and broaden our portfolio, including the gas and energy sector.
Profits are one of the most important goals of any successful business, and investors are one of the most important constituencies of public businesses.
Don't ever let your business get ahead of the financial side of your business. Accounting, accounting, accounting. Know your numbers.
If you don't understand the details of your business you are going to fail.
Your typical business just measures the metrics that have to do with the profitability of the business one way or another. But you can have metrics that measure employee happiness and the morale. You can also do direct customer surveys; you can track it over time. You can do supplier satisfaction scores as well.
In general, you don't want competitors to understand your business outside of telling people your revenue and profitability numbers.
Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them.
The fact is that one of the earliest lessons I learned in business was that balance sheets and income statements are fiction, cash flow is reality.