I’ve been wanting to write this article for a while, but I wanted to make sure I approached the topic accurately, practically, and in a way that's easy to understand, especially for leaders and business owners at smaller companies. A P&L can feel intimidating if you don't work in finance every day, but understanding the basics can dramatically improve your overall business knowledge and make you more comfortable discussing financial performance with a CFO, controller, or fina

Through my consulting work with companies doing less than $10 million annually, as well as fresh start-ups, I've learned that one area often needs more attention: P&L management education. That’s what led me to write this article (or maybe more accurately, a lesson plan) on how I believe a P&L should be built, understood, and managed throughout an organization. Now, I know some CFOs may disagree with parts of my approach, and leaders running $50 million companies may look at