As an owner of a small business, it is important to schedule time to prepare a profit and loss statement, also known as an income statement. You may feel your time may be better spent on managerial issues or improving your products or services. While these key functions help grow your business, you also need to take the time to prepare and understand your income statement. It provides crucial information on the health of your business by letting you know your revenue and expenses, with the difference being the net profit or loss. Compare this to your budgeted figures to analyze your progress so you can take additional steps, such as cutting expenses.
You can prepare an income statement any time using QuickBooks.