Managing Partner of BlackStorm, Shelby Tee, once said, "The financial systems of a company are its bloodline.". This statement cannot be more accurate at this junction, with many businesses pivoting their offerings while preparing for the endemic.
To provide a more holistic experience to users, the financial template contains clear instructions and various examples to show readers how to use it. The template also contains various explanations of key financial terms and accounts. Anybody will be able to use the template easily as it is self-explanatory. It will be able to help businesses and entrepreneurs alike to iron out their financials. People who do not have any experience in finance will also be able to use the templates.
Profit and Loss Statement
The Profit & Loss Statement helps you summarise the company's revenues and expenses incurred during a specific period, providing information about the company's ability to generate profits by increasing revenue, reducing costs or both.
By using this statement, the company will understand if it is making a profit or a loss. If it is making a profit, they should seek to understand why are they making a profit and how has the profit grown. For example, they should make an effort to analyse if the profit has grown due to an increase in the number of clients served or if it should be attributed to an increase in prices.
By building on this, the business will understand its future cash flows and plan appropriately for its budget in the coming month.
This template aims to assist you in summarising the company's revenues and expenses incurred during a specified period. In addition, it provides information about a company's ability to generate profits by increasing revenue, reducing costs or both. By developing a clear understanding of the profit and loss statement, investors can assess the company's profitability.
In this video, we will cover:
• Understand the purpose, uses and limitations of the Profit & Loss Statement
• Understand how a Profit & Loss Statement will look like
• Understand how the Profit & Loss Statement may vary across different industries
• Identify the key elements in the Profit & Loss Statement and the calculations that derive them
• Understand the differences between the two types of costs – Cost Of Goods Sold (COGS) and operational expenses, and both can be found in the Profit & Loss Statement
• Identify the common mistakes made in the Profit & Loss Statement and learn how to avoid them
• Learn how to interpret the quantitative data found in the Profit & Loss Statement