Field guidesPart 3 · Know Your Numbers3.1

How to build a P&L

7 MIN READ·7 STEPS·PART 3

List revenue for the period, subtract the cost of the goods you actually sold, then subtract operating expenses. What is left is net profit.

A P&L is three blocks of numbers in a fixed order. Once it is set up, producing one each month takes under an hour.

The hard part is not the format. It is making sure COGS follows the sale rather than the purchase.

01

Set the period

One calendar month. Monthly beats annual because you can still act on it.

02

Total revenue

All sales delivered in the period. Deposits on undelivered goods are not revenue yet.

03

Calculate COGS

The landed cost of units sold in the period, not the cost of everything you bought.

04

Gross profit

Revenue minus COGS, plus the percentage. This is your gross margin.

05

List operating expenses

Rent, utilities, wages, fuel, insurance, software, interest, marketing. Consistent categories every month.

06

Net profit

Gross profit minus operating expenses. Include your own pay as an expense.

07

Compare months

Put three months side by side. Trends tell you more than any single month.

Example

Revenue $18,000 − COGS $10,800 = $7,200 gross profit (40%) − $5,500 operating expenses = $1,700 net profit.
COMMON MISTAKES
  • Expensing whole loads in the month they were bought.
  • Leaving owner pay out so the business looks profitable.
  • Changing expense categories every month so nothing is comparable.

Not ready for truckloads yet? Keep building.

Part 4: Build Buying Power →

REGISTIX RESERVEKeep building.

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