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Money Worth Mentioning: End the P&L!

Say goodbye to accounting's favorite financial statement (and hello to really good data)

That's right, we said it: The P&L - or Profit & Loss, also called the Income Statement - has lost our favor. While the beloved business report provides a general overview of a business's profitability, it is not all that useful for understanding your company's cash position - a critical detail every business owner should be crystal clear on.

So what specifically is missing from traditional Profit & Loss reports? We absolutely love this short, snarky course created by Michael Eckstein of Resting Business Face, which explains exactly why the P&L is subpar for most small business owners.

Spoiler alert: Nearly every problem Eckstein highlights relates directly to the issue of cash flow evaluation and the P&L's shortcomings in this area.

If you subscribe to Eckstein's newsletter, you can also access an Enhanced P&L template that brings in the traditional P&L's missing pieces to provide a clear snapshot of your company's true cash position.

We're all about tools and tips that help business owners make the best decisions for their company's sustainability, and that's why Eckstein's End the P&L is this week's Money Worth Mentioning.


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