How to read a Profit & Loss Statement (without falling asleep)

If you've ever opened a P&L and immediately closed the tab, you're not alone. 

Here’s the quick breakdown: 

Income - What you're bringing in 

Expenses - What’s going out 

Net income - What’s left after expenses 

That last line, net income, tells you if your business is making money or just staying busy. And when your P&L is updated monthly and organized properly, it turns into a tool you can use to make decisions instead of just something you forward to your accountant once a year.