How to Build and Read a P&L
**Free for H2B2 Supporters and members of H2B2 Skool platform; check your email for your 100% off code!
You can’t answer your CEO’s most important financial questions without understanding the basic financial documents.
This workshop is built to cover early but critical topics in the H2B2 COO Financial Training program, helping those who are administrative assistants all the way to senior leaders who are unfamiliar with hands-on financials and financial reporting.
We will focus on ONLY using the Profit and Loss statement and communicating around it, including talking about what is MISSING from the P&L that is also important, which is why the other statements are so valuable (but we won't go through them, because that would invite confusion rather than clarity).
This will be led by Nathan Young, who grew up in the family business, has navigated being a Second in Command, a CFO and head of Finance who works directly with the CEO. He now coaches both First and Second in Commands to not only understand their margins, but how to have these financial conversations together.
What we’ll cover
What the CEO actually cares about
Understanding the P&L and how to use it to get answers
How bookkeeping supports everything above
Everyone who attends will
Fill out a P&L from scratch and understand how to do so in the future
Build out a simple Chart of Accounts
Allocate expenses to different parts of the P&L to see how bookkeeping effects reports
Calculate their margins (and understand targets vs actuals)
Answer each of the CEO level questions from the P&L built during the workshop
And then be able to use that document to answer questions the CEO actually cares about, from their work, like:
How much cash do we need to run the business for 3 months if no one pays?
Are we hitting our target margins?
How much will I pay taxes on?
What kinds of questions can you NOT answer with a P&L?
How much cash do we have on hand? (Balance Sheet + Cashflow Calendar or Statement of Cash Flows, depending on size of company)
What do we owe, how much are we owed? (AP/AR) (This is on the balance sheet)
Can we buy a new truck / make a new hire? (Requires P&L & Balance Sheet)