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P&L 101
Profit & Loss At a Glance
The scorecard every other guide uses.
The Profit & Loss statement is the scorecard every other guide in this roadmap uses. Read it top to bottom: start with what you billed, take away what the jobs cost, then what it costs to run the company. What's left is profit.
Where each $1 of revenue goes
Example company · $110,000 revenueGross Profit · 60.3¢ left to run the business
- Direct 39.7¢
- Indirect 4.5¢
- Fleet 10.8¢
- Admin 34.9¢
- Net Profit 10.1¢
Every line, in plain words
Revenue
Everything you invoiced customers for work performed. The “top line.”
In-house work $100,000 + subcontracted work $10,000
$110,000100% of revenue
Direct Expenses
Costs tied to doing the job itself. No job, no cost.
Field labor, materials, subcontractors, equipment rental, dump fees
$43,70039.7% of revenue
Gross Profit
What the jobs earn before paying to run the company.
Revenue − Direct Expenses
$66,300$110,000 − $43,700
Gross Margin
Cents kept from every $1 after job costs.
Gross Profit ÷ Revenue
60.3%
Indirect Expenses
The hidden “burden” that rides along with every crew hour.
Field payroll taxes, workers' comp, vacation/sick pay, travel & lot time
$5,0004.5% of revenue
Fleet Expenses
The cost to own, fuel and keep trucks and equipment running.
Depreciation, vehicle & equipment fuel, repairs, fleet insurance, small tools
$11,85010.8% of revenue
Admin Expenses
The cost of running the office and the business: overhead.
Office salaries & taxes, rent, utilities, advertising, insurance, phones, payroll processing
$38,38034.9% of revenue
Net Profit
The bottom line: what the business actually earned.
Revenue − Direct − Indirect − Fleet − Admin
$11,071$110,000 − $98,930
Net Margin
Cents of true profit kept from every $1.
Net Profit ÷ Revenue
10.1%
Try it with your own month
Starts with the example company's numbersYour P&L, one dollar at a time
Type in one month from your own P&L to see where your dollar goes.
- Direct
- Indirect
- Fleet
- Admin
- Net Profit
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