Member-only story
Why Is The P&L So Important?
Every major corporation in the world keeps track of its bottom line, on its profit & loss statement (“P&L”). Government regulators, investors, and company management all think that this statement contains crucial information to be aware of.
So, do you know what is so important about a P&L? And do you know the answers to these questions in your own life?
You, LLC
While you may not be a large, multinational conglomerate like the many currently compiling their 2023 profit and loss information, you still work for the all-important company You, LLC (or You, Inc. if you want to incorporate).
Therefore, it is important that you know what the big deal is with the P&L.
The P&L answers the single most important question in all of personal finance, it is important whether you know the answer to this question … and it can be summed up in six words:
Are You Living Within Your Means?
In accounting terms: are your revenues greater than your expenses? Aka, do you earn more money than you spend?
This one question determines whether you are living a sustainable lifestyle or not, so it is best…
