Every business owner has a big vision for their company and wants to make it happen. However, when the owner is struggling with making the company bigger, they often get confused or frustrated that it’s not happening.

They didn’t teach you how to grow your company in college and there’s no on-the-job training when you’re the CEO. It shouldn’t be so hard to have a company with increasing profitability.

In our last post, we discussed the balance sheet, and you heard the acronym PALL (Profitability, Activity (AR and inventory turns), Liquidity, and Leverage). In case you missed it, you can check it out here.

Today, we’re going to talk about the income statement, or the profit and loss statement. This is the one that most business owners are familiar with. The income statement measures profitability; specifically, revenue minus expenses. Expenses fall into 2 categories: before and after operating expenses.

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