Necessary for restaurants big or small, a profit and loss statement (P&L) shows you the total revenue and expenses of a business in a given period of time.

Simply, a P&L reflects your costs minus sales, and the result gives you an indication of your business’ financial health. A positive number shows you you’re doing well financially.

A negative number can show you it’s time to overhaul your business operations.

But it can be an overwhelming document. Learn how to make sense of your P&L now.

by Dana Krook

Dana is the former Content Marketing Manager at TouchBistro, sharing tips for and stories of restaurateurs turning their passion into success. She loves homemade hot sauce, deep fried pickles and finding excuses to consume real maple syrup.