“It’s P+L time – Yesssss!”
OK, OK, if that’s not a phrase you’ve ever imagined saying, you’re not alone. For most business owners, the Profit + Loss is like kale: We know it’s good for us, but it’s not exactly exciting or enjoyable.
But what if opening your P+L each month didn’t feel like a chore but more of a ritual, a chance to discover opportunities for growth, gain clarity and maybe even (gasp!) have a bit of fun in the process?
At Amplify, we believe that the P+L review shouldn’t be intimidating. Here’s how we’ve helped business owners transform their relationship with their P+L – and how you can, too.
Step 1: See it as the Story of Your Business
Your P+L isn’t just a spreadsheet; it’s a story that’s constantly unfolding.
Each line reveals something about your business—where money is coming in, where it’s slipping out and where you have opportunities for growth. When you look at it this way, the process becomes less about fear and more about discovery.
- Check your Revenue results: Did a specific product or service outperform this month? Celebrate it!
- Spot the leaks: Are there expenses that don’t align with your goals? Cut them and check in next month to see how it impacted your results.
- Monitor your Profit: was your Gross Profit in line with historical financials, and did you hit your target Operating Profit?
Step 2: Make It Personal
Remember that your business finances represent hard work, dreams and goals. This is why we believe so deeply in the importance of financial forecasting: Sustainable growth comes from connecting your P+L numbers to your overall vision and subsequent financial goals.
When you frame the numbers in terms of how they actually will impact your business and life, the story becomes more compelling.
- Ask yourself: What would hitting a 20% Operating Profit margin mean for my life? More time with family? A new hire to lighten the load?
- Play the “What If?” game: What would happen if Revenue were 10% higher or lower? What are the main controls that impact your cash flow?
- Celebrate wins: Did you increase your margins or cut unnecessary costs? Acknowledge the progress—it’s worth a fist pump.
Step 3: Create a Ritual (and make it enjoyable!)
Yes, you read that right. Make it fun. The monthly P+L review doesn’t have to be all serious business. Just like going for a run or opting for that salad, you have to make it enjoyable or you won’t want to do it.
- Set the Scene: Brew your favorite coffee or tea, put on a playlist you love and turn your P+L review into a mini event that we call the M.A.P. Review:.
- Measure: How did our actual results compare to what we thought was going to happen?
- Adjust: What updates need to be applied to the underlying forecast to reflect reality?
- Predict: Based on our refined growth picture, are we still on track to meet our goals on time?
Step 4: Take One Step Toward Change
The real fun begins when you turn insights into action. Seeing the tangible impact of your decisions—whether it’s a more robust bottom line or reduced expenses—can be incredibly rewarding.
- Share with a Colleague: Whether it’s a business partner, a team member or your accountant, make a plan to share your P+L with someone, and list out two or three questions to ask. Insight from others is invaluable to sustain business growth.
- Connect the Numbers to Your Goals: At Amplify, we live in the financial forecasting world because having a continuous numbers story leads to growth. Be sure to have a forecast or get help with one, so you have a tangible place to put the numbers you review in your P+L and connect them to your larger goals.
Moving Forward: Keep the Rhythm
Opening your P+L each month can go from a dreaded task to something you look forward to.
With a mindset of curiosity, a connection to your goals, and permission to enjoy it, you might just find yourself saying, “It’s P+L time—Yeeesssss!”
At Amplify, we’re here to help make that transformation happen. We build and interpret forecasts that connect your P+L numbers to your future goals, and then we join you in your monthly ritual of review to help you choose the most strategic next steps.
If you’re ready to embrace your P+L and make smarter, more confident decisions, let’s chat.
We’ll bring the spreadsheets—and maybe the coffee, too.
