Watch This · Module 01 · My Business

Income Statement Explained: A Step-by-Step P&L Guide for Beginners

LivePlan · 4 min

Module 1 · Module 1 Complete — before you turn the page to Module 2

Why this video

A walk through a real business's report card: revenue at the top, expenses underneath, profit at the bottom — the same three numbers you just pulled apart for Marcus, on a business a hundred times his size. Stay for the last minute: it says out loud what Cash Has a Clock showed you — profit is not cash. There's a 20-second ad in the middle; skip it.

What to watch for

Revenue, then expenses, then profit — the same order as your Four Numbers page.
At 2:41 she lists what the income statement can't show you. Cash is first on the list.

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Video by LivePlan (Palo Alto Software), played here from YouTube in privacy-enhanced mode. If the player doesn't load, watch it on YouTube. Build Your First Business is published by Family Aspirations and is not affiliated with LivePlan.