Run Your Monthly P&L
Your Profit & Loss statement is the clearest picture of your business's financial health each month. This recipe walks you through reviewing your P&L, visualizing where your money comes from and goes, and understanding your bottom line—all in just a few minutes.
1. Request your P&L
Start by pulling your complete Profit & Loss statement for the month. This document shows all your income and expenses, giving you your net profit or loss for the period. It's the foundation for understanding your business's financial performance.
2. Review the waterfall chart
Visualizing your finances makes patterns easier to spot. The waterfall chart shows how your income flows down through expenses to reach your final profit or loss, making it simple to see which categories have the biggest impact.
3. Get the narrative summary
A plain-language summary helps you understand what the numbers mean for your business. This narrative connects your P&L to your actual performance, highlighting key takeaways and changes from previous months.