FINANCIALS: P&L Stability
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      1. BPA Knowledge Base
      2. Strategy
      3. FINANCIALS: P&L Stability

      Overview of a Profit and Loss (P&L) report

      You'll understand the significance of this report in assessing a business' financial performance, who typically prepares it and how to interpret the information it presents.

      A Profit and Loss (P&L) report, also known as an income statement, is a financial document that summarizes a company's revenues, expenses, and profits over a specified period of time.

      A profit and loss (P&L) report is an essential document for a chiropractic business as it shows whether the company is generating a profit or incurring a loss. It includes important financial information such as revenue, expenses, and other details that provide insight into the company's performance. Understanding how to read a P&L report can assist the business in reaching its financial goals and making informed decisions. 

      This exercise will cover the key aspects of a P&L report and will help you learn:

      • what is a P&L report
      • why do you need a P&L report
      • who prepares a P&L report
      • how to read a P&L report

      The P&L report is a fundamental tool for measuring the financial performance of the company and for making strategic decisions. It is important to review this report regularly, comparing them with previous period or industry benchmarks and to identify trends and patterns that might need attention.