How To Analyze Profit & Loss Statements

10/21/24 • 9 min

Welcome to the Mills Knows Bills Podcast! Host Mills Bender, founder and CEO of Mills Knows Bills, discusses strategies for business owners and variable income earners to manage their finances effectively. Let's get to those burning financial questions!

In this season finale episode of the Mills Knows Bills podcast, Mills provides a comprehensive guide to understanding and analyzing your profit and loss (P&L) statement. The episode covers key components such as revenue, cost of goods sold (COGS), operating expenses (OPEX), and net income. Mills offers practical tips on diversifying revenue, managing seasonal business fluctuations, negotiating with vendors, and maintaining a healthy profit margin. Whether you're a product-based or service-based business owner, this P&L analysis 101 class will help you make smarter financial decisions and avoid common pitfalls. Tune in to learn how to better handle your fluctuating income and stay on track with your financial goals!

Do you have your own burning financial question for Mills? Contact her here:

Email: [email protected]

Website: https://MillsKnowsBills.com

Instagram: https://instagram.com/@millsknowsbills

LinkedIn: https://www.linkedin.com/company/mills-knows-bills

Subscribe for the latest on YouTube: https://youtube.com/@MillsKnowsBills

Link to video podcast episode: https://youtu.be/5MUYVnkmG-I

00:00 Introduction to Mills Knows Bills

00:53 Podcast Overview and Goals

01:26 Understanding Profit and Loss (P&L)

02:01 Revenue Analysis

03:52 Cost of Goods Sold (COGS)

04:49 Operating Expenses (OPEX)

06:39 Net Income and Profit Margin

09:22 Conclusion and Next Steps

#financialpodcast #millsknowsbills #entrepreneurialfinance #variableincome #businessfinances

Do you have your own burning financial question for Mills? Contact her here:

Email: [email protected]

Website: https://MillsKnowsBills.com

Instagram: https://instagram.com/@millsknowsbills

LinkedIn: https://www.linkedin.com/company/mills-knows-bills

Subscribe for the latest on YouTube: https://youtube.com/@MillsKnowsBills

Link to video podcast episode: https://youtu.be/5MUYVnkmG-I

00:00 Introduction to Mills Knows Bills

00:53 Podcast Overview and Goals

01:26 Understanding Profit and Loss (P&L)

02:01 Revenue Analysis

03:52 Cost of Goods Sold (COGS)

04:49 Operating Expenses (OPEX)

06:39 Net Income and Profit Margin

09:22 Conclusion and Next Steps

#financialpodcast #millsknowsbills #entrepreneurialfinance #variableincome #businessfinances

Previous Episode

How To Scale $1 Million to $10 Million for Blue Collar Businesses

Welcome to the Mills Knows Bills Podcast! Host Mills Bender, founder and CEO of Mills Knows Bills, discusses strategies for variable income earners to manage their finances effectively. Let's get to those burning financial questions!

Join Mills in this solo cast episode of the Mills Knows Bills podcast as she discusses strategies for mastering fluctuating income and scaling your blue collar business. Mills identifies five common financial pitfalls that entrepreneurs face: lack of planning, mixing personal and business finances, avoidance of financial management, inadequate savings, and unbalanced leverage. Learn practical tips to implement a budget, separate finances, stay proactive in financial planning, build savings, and manage debt to ensure a healthier financial future for your business.

Do you have your own burning financial question for Mills? Contact her here:

Email: [email protected]

Website: https://MillsKnowsBills.com

Instagram: https://instagram.com/@millsknowsbills

LinkedIn: https://www.linkedin.com/company/mills-knows-bills

Subscribe on YouTube for the latest https://youtube.com/@MillsKnowsBills

Link to video podcast episode: https://youtu.be/dpI7WLlTED4

00:00 Introduction to Mills Knows Bills

00:28 Podcast Overview and Goals

00:53 Answering Common Financial Questions

01:35 Five Common Financial Pitfalls

01:48 Pitfall 1: Lack of Planning

03:11 Pitfall 2: Mixing Business and Personal Finances

04:30 Pitfall 3: Avoidance

06:11 Pitfall 4: Little to No Savings 0

7:18 Pitfall 5: Unbalanced Leverage

08:57 Conclusion and Call to Action

#financialpodcast #millsknowsbills #entrepreneurialfinance #variableincome #businessfinances #financialmistakes #bluecollar

Next Episode

Tax Traps To Avoid As Business Owners

Tax Traps to Avoid as Business Owners | The Mills Knows Bills Podcast Season 4 Premiere

Link to video podcast episode: https://youtu.be/tQd0BD-mczM

Welcome back to The Mills Knows Bills Podcast! Let's get to those burning financial questions.

In this season 4 premier episode, host Mills Bender welcomes Paul Childers, owner of Blue Sky Biz Solutions, to discuss the importance of showing profit in a business and avoiding common tax traps. They dive into business credit, why it matters, and how to build it effectively. Learn strategies to manage taxes, protect personal assets, and obtain better financing to scale your business. Tune in to gain insight into mastering your fluctuating income and achieving both personal and professional financial goals!

To connect with Paul:

https://blueskybizpro.com/

https://www.facebook.com/paul.childers.731

Do you have your own burning financial question for Mills? Contact her here:

Email: [email protected]

Website: https://MillsKnowsBills.com

Instagram: https://instagram.com/@millsknowsbills

LinkedIn: https://www.linkedin.com/company/mills-knows-bills

Subscribe on YouTube for the podcast episodes and more from Mills Knows Bills: https://youtube.com/@MillsKnowsBills

00:00 Introduction to Mills Knows Bills

00:53 Season Four Kickoff with Paul Childers

01:22 Understanding Business Credit and Taxes