Monthly Profit/loss reporting for your business
Instructed By:
Richard Malenczuk // CPA // Chief Financial Officer at City Winery
Ron Bostwick // Evening Show Host/Promotions Director at The Colorado Sound
ADDITIONAL RESOURCES
Staff and Team Discussion Questions
Simplified vs. Detailed P&Ls
Simplified P&Ls vs. Detailed P&Ls: What are the advantages and disadvantages of using a simplified profit and loss statement compared to a more detailed one?
Comparison Items: How important are budget, forecast, flash reporting, and prior actuals in evaluating P&Ls? Can you think of situations where one might be more useful than the others?
Understanding EBITDA
Definition and Use: What is EBITDA, and why is it a crucial measure for assessing a company's performance? How does excluding interest, taxes, depreciation, and amortization provide a clearer picture of operating profitability?
Corporate Tool: Do you think discussing EBITDA makes one a "corporate tool," or is it an essential part of financial analysis? Why or why not?
Key Performance Indicators (KPIs)
Value of KPIs: What are some critical KPIs for your business or industry, and how do they help in measuring value and performance?
Buzzword Impact: How do you feel about the use of buzzwords like "KPIs" in corporate discussions? Do they enhance or detract from meaningful communication?
Miscellaneous Financial Topics
Taxes: How do different types of taxes (sales tax, ticket tax, property taxes) impact the financial health of a company? What strategies can be used to manage these taxes effectively?
G&A Expenses: What are the challenges in managing General & Administrative (G&A) expenses? How do discretionary vs. fixed expenses play into this?
Accrual Accounting: Can you explain the difference between accrual accounting and cash accounting? Why might one be preferred over the other in certain situations?
Revenue Segments: How important is revenue diversification for a company's stability? What are some potential risks and benefits of diversifying revenue streams?
As a % of Revenue: Why is it useful to analyze expenses and profits as a percentage of revenue? How does this help in making financial decisions?
General Reflections
Stress Management: How can companies reduce stress and concern when reviewing P&Ls, especially in tight margin businesses? Are there any strategies or practices that can help maintain a positive outlook?