Whether business is good and powering ahead or you're just keeping your head above water, managing cash flow of a hospitality business is a constant juggle for owners, watching expenses and maintaining profitability without letting running costs get out of hand.
- Sales - Cost of Goods = Gross Profit
- Gross Profit - Expenses = Net Profit (Owners Wage)
Between stock, wages, supplies, bills and fees, it’s easy to overspend on day to day expenses and wonder where all the money has gone when you get to the end of the week.
What is the Profit and Loss Worksheet?
The Profit and Loss worksheet is a quick and simple financial tool for business owners to record weekly takings, costs and expenses which automatically works out weekly profitability in a few minutes.
The value of a business is determined by the net profit it generates, all businesses need to reach a happy medium of sales, costs of goods, expenses for a business to provide the owner with a healthy income and be worthwhile.
Why use the Profit and Loss Worksheet?
It’s important for business owners to understand where and how the money goes, hence keeping detailed financials and maintaining accurate records is critical to building a healthy and sellable hospitality business and is a discipline well worth adopting.
Use the Profit and Loss Worksheet at the close of the last trading day of each week to record key items;
- Sales
- Cost of Goods
- Expenses
- Net Profit
The worksheet is dual mode, you can enter the numbers on the worksheet directly or you can print off and manually workout the details.
Get the Worksheet.
Download the Profit & Loss Worksheet in Microsoft Excel format which can be easily customised to suit your needs (Australian Version).
Consult a Professional.
Always consult a qualified professional for advice.
By Peter Kais | hospitalitytrader.com
