Profit & Loss and Balance Sheets

From "The Manual for Developing Social Enterprises"

For every single bit of goods or services you supply to others, there will be costs to pay (money going out) and money coming in from the sales you make. If there’s more coming in than going out, then you should be making a profit.

The balance sheet for your business gives you a 'snapshot' view of what the business is worth, its assets and liabilities, at one particular moment in time. Usually this is at the end of the financial year and allows you to compare the situation of the business from one year to the next but you can also draw up quarterly or even monthly balance sheets. The balance sheet should be produced once your trading profit and loss account has been drawn up.

This manual covers the following subjects related to analzying profit and loss:

  • Simple Financial Calculations
  • Analysing Performance - The Balance Sheet
  • Analysing Performance
  • Analysing Financial Performance
  • Profit And Loss Forecast
  • Profit And Loss Calculations
  • The Balance Sheet Exercise
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