Free Guide

The Founder's Guide to Reading a P&L Statement

Understand your profit & loss report in plain English — and know exactly what to look for each month.

What's inside

8 sections that walk you through every line of your P&L — so you can read it like a pro.

  • RevenueWhat you actually earned from sales — before any costs are taken out.
  • Cost of Goods Sold (COGS)The direct costs to produce or deliver your product or service.
  • Gross ProfitRevenue minus COGS. This tells you if your core business is profitable.
  • Operating ExpensesOverhead costs like payroll, rent, software, and marketing.
  • EBITDAEarnings before interest, taxes, depreciation, and amortization — a key profitability metric.
  • Net IncomeThe bottom line: what's left after every expense, tax, and interest payment.
  • Month-over-Month TrendsHow to spot patterns and flag issues before they become problems.
  • Red Flags to WatchCommon warning signs founders miss when reviewing their P&L.

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