Episode 12: Demystifying your Financial Statements - Profit and Loss (P&L)

Your numbers tell a story and the P&L is where that story begins.

If you’ve ever opened your Profit and Loss statement and felt a little unsure of what it’s really telling you, you’re not alone. The P&L can look like a maze of numbers, but once you know how to read it, it becomes one of the most powerful tools in your business.

In this episode of The Accounting Edit, Leah and I break down the Profit and Loss statement in plain language. We talk about what it really means for your business health, how to make sense of revenue, gross margin, and net income, and the common traps business owners fall into when they review their numbers.

We also talk about the mindset side of it—why understanding your P&L isn’t just about data, but about confidence and control. When you can look at your numbers and actually understand the story behind them, you start making smarter, more grounded decisions about where your business is headed.

For both of us, the goal is simple: to help business owners see that their financial statements aren’t something to fear or ignore—they’re a way to tell the story of your growth.

So whether you’re a seasoned business owner or just starting out, this episode will help you see your P&L in a completely new way.

What we cover in this episode:
• What a Profit and Loss statement really shows about your business performance
• How to identify strengths, weaknesses, and spending patterns
• Why tracking trends matters more than single-month results
• The importance of understanding gross margin for pricing
• Common mistakes like mixing personal and business expenses
• How to use your P&L to make informed and confident business decisions

🎙 Listen to Episode 12: Demystifying Your Financial Statements - The P&L

Connect With Us

theaccountingedit.com

Aminder Mann, CPA
Website: sequoia-cpa.com
Instagram: @sequoiacpa
LinkedIn: Sequoia CPA

Leah McCool
Website: orca-accounting.com
Instagram: @orcaaccounting
LinkedIn: Leah McCool

Keywords: Profit and Loss, P&L, Business Accounting, Financial Statements, Gross Margin, Net Income, Common Mistakes, Business Growth, Accounting Tips, Financial Analysis, Bookkeeping