What Is a Profit & Loss Statement? (And Why Every Business Owner Needs One)
Let’s Talk About the Report Every Business Owner Needs (But Many Avoid)
If you’ve ever opened your bookkeeping software and felt instantly overwhelmed, you’re not alone. Many service-based business owners I work with from creatives and coaches to wellness professionals have built thriving businesses but still feel unsure about one of the most important financial tools: the Profit & Loss Statement.
So let’s break it down in a way that’s simple, supportive, and aligned with how you run your business.
What Is a Profit & Loss Statement?
A Profit & Loss Statement (also called a P&L or Income Statement) shows your revenue, expenses, and net profit over a specific period of time typically monthly, quarterly, or yearly.
Think of it as a snapshot of how much money is coming into your business, how much is going out, and what’s left over.
It usually includes:
Revenue (Income): The money your business earns from sales or services.
Cost of Goods Sold (COGS): If applicable, the direct costs of delivering your service or product.
Operating Expenses: Everything it takes to run your business; software, contractors, advertising, etc.
Net Profit (or Loss): Your total income minus your total expenses.
Why It Matters (Even If You’re Not a “Numbers Person”)
Here’s the truth: you can’t grow what you don’t track.
Your P&L gives you clarity on:
Your actual profitability (are you really making money?)
Where your money is going (subscriptions, anyone?)
Seasonal patterns in income and spending
Informed decisions around pricing, investing, or scaling
Many women I work with are intuitive and heart-led. You’re passionate about your work and I want your finances to support that passion, not stress you out. If you are wanting to build a simple and aligned business knowing your numbers is non negotiable.
Real Talk: What Happens Without It?
Without a regular P&L review:
You may feel like you’re making money but still can’t figure out where it all goes.
You might miss out on smart deductions at tax time.
You could unknowingly overspend or underprice your offers.
You risk burnout from trying to scale a business without clear financial footing.
You are stuck in a cycle of stress and fear because your operating your business without a true plan
But Here's the Good News…
You don’t have to do this alone.
As a bookkeeper who supports service-based women entrepreneurs, I create monthly P&L reports that are:
Easy to understand
Tailored to your business and your goals
Designed to give you clarity, confidence, and peace of mind
Imagine opening a clean, beautiful report each month and instantly knowing:
How your business performed
What to focus on next
And how close you are to your goals
That’s the kind of financial support you deserve and that’s what I love providing!
Ready for Peaceful Profit Clarity?
If you’ve been DIYing your books or avoiding your numbers all together, now is the perfect time to shift into aligned financial support.
Head to www.alignedclaritybookkeeping.com/services to start learn more about working with me and to get the process started!
You deserve a business that feels grounded, aligned, and financially clear. And your Profit & Loss Statement is a powerful part of that.
✨ You've got this and I’ve got you.
