Perform an Annual P&L Review

By QuickBooks Canada Team

0 min read

You should perform an annual review of your business’s profit and loss statement, also known as the income statement. Your P&L statement will show your revenue and expenses, with the difference being net income or loss.

As a small business owner, you may be tempted to skip this step or delegate the task to someone else. However, examining your P&L at the end of the year is useful to check your progress against previously budgeted figures and compare to year-ago numbers.

Use the P&L review process to create a more accurate budget for the next year. For instance, if expenses are running higher than planned, you can make adjustments.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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