Tip for the new year – A Profit and Loss report that works!
Make your Profit and Loss report tell you what you need to know. Using whatever accounts your accounting software suggested in the set up is ok to start. To really use your accounts to analyse how your business is going requires custom accounts. For instance a Landscaper needs several income accounts not just “Sales” Useful income accounts would be Maintenance – Domestic, Maintenance – Commercial, Landscape Projects. The benefit is you can easily identify the best performing incomes streams and target them to grow the business less