In this module we are going to look at how to put a profit and loss statement together for your business.
In this module you’ll explore:
- Building a profit and loss statement for your business
- How to calculate gross and net profit margins
- What other financial metrics you need to track within your business
- Top tips for managing your finances
Start by downloading and saving the workbook to your computer, to use throughout the module, capturing any key takeaways and completing the exercises at the end of each chapter.
Building a profit and loss statement
In the first chapter we’ll take a closer look at a profit and loss statement, bringing together revenue and costs to understand the viability of your business.
Even if you aren’t trading yet or already have a profit and loss statement in place, take the time to go through the process anyway to challenge your existing business model, revenues streams and costs and see if you can make any improvements.
Understanding profitability
Following on from the last chapter, we are now going to look at the overall profitability of your business and individual product and service lines, using gross and net profit margin equations.
We’ll also hear from some entrepreneurs about how they monitor the profitability of their businesses and what other key financial metrics they also track.
Top tips for managing your finances
In this chapter, we’re going to hear some top tips from entrepreneurs on how they manage their finances.
Further Reading
- Management strategies: accounting for growth
- Management strategies: how to reinvest in your business
- How late payments affect your SME
- The quick fix: how to get out of a cash-flow crisis in three steps
Download the Financial Management Workbook here
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