How to Explain: The P&L

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If you’re new to the channel, my name is Michael King. I’ve been building and managing my Fractional CFO firm, KFE Solutions, since 2016. I’ve also coached hundreds of other Fractional CFO firm owners to help them start and scale their firms as well. Today, I share the lessons I’ve learned over the past 8+ years to help others build their firms and have outsized impact for their clients.
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[@Unnamed111-l5z]

You have explained rather complex question in such a simple way! Thank you!

[@MB11183]

One of the best videos I’ve seen on the topic
Straight to the point and simple

[@skylerstewart]

I really already knew this, but watched it to see your explanation. Just wanted to share love because I'm really enjoying your content. You do a good job at leaving me hungry for more. In the early stages of CFO business and not quite ready to dive deep in the course materials etc but your free content is really great. I've gotten a lot of value from your interviews as well.

[@TheCFOreport]

@@skylerstewart so glad to hear that Skyler. Welcome to the CFO world!

[@SaidMarra]

Thank you so much. You have explained it in a very simple way.

[@kelrassi]

Great explanation and clear P&L

[@1_baddest476]

Educative. Simple to the point

[@josemateuslopes8241]

From now on I'll follow you. Very amazing. Thank you

[@TheCFOreport]

Happy to help!

[@charismabadu9644]

Very informative ! Thank you!

[@lunamorris2091]

I like your video presentation. It is informative too, at the same time. Thanks a lot for your guidance!

[@TheCFOreport]

Thanks! I'm glad it was helpful 😀

[@lindawashington5741]

You made it simple. It was hard to understand

[@Nataliathatslays]

Great video, one of the better ones out there- than you !

[@TheCFOreport]

Wow, thanks!

[@funmasti29]

Good video with no waste of time. ❤

[@TheCFOreport]

Thanks! Glad you enjoyed it.

[@ValeHow-de5ts]

Fab explanation, many thanks

[@TheCFOreport]

@@ValeHow-de5ts glad it was helpful!

[@marthalindsey5599]

Super helphul thanks!

[@TheCFOreport]

So glad to hear that Martha!

[@FortuneGodstar]

Amazing! 👏

[@shankarp.s5923]

excellent...

[@chuckturner997]

Can you show a P&L and do a demo? Industrial field?

[@captkhalsa]

Great explanation!

[@TheCFOreport]

Thank you!

[@Jaktgbabu]

Thanks well informed ❤

[@chocolatte8301]

Thank you!

[@TheCFOreport]

You’re so welcome!

[@burlyn88]

Perhaps dumb question here...but I always assumed Profit was after ALL expenses. How do I know what other sorts of things fall under the COGS category vs Overhead?

[@TheCFOreport]

COGS are the expenses directly related to making your product or delivering your service.
Example:
Let’s say you sell dry erase markers. Your COGS would include the marker shell, the felt inside the marker, the lid, the box, etc.
Let’s say all of your COGS total up to $1.25. You sell your marker for $2 then your gross profit is $0.75.
Example 2:
If you sell plumbing services, your COS would include the payroll your company paid the plumber that works for your company. So if you pay them $30/hr and they spend 3 hours at the job your COS would be $90.
Let’s say you bill $100. Your revenue for that job would be $300. Your COS is $90 and therefore your gross profit is $210.
These are two very basic examples but I hope it helps!

[@patrickjarman372]

Nice Video.

[@TheCFOreport]

Thanks Patrick

[@rikkihurt]

Hi Michael, I’m an Executive Assistant and hope to be hired on to one of the positions I’m interviewing for.
One supports the CFO, the other supports the VP of tax department. Part of the role I really want is analyzing the P&L statement and other reports and recommending a course of action.
Any advice for me that will help me wow my executive and help me excel in my role?

[@LASB208]

How to invest the money of my P&L on Webull?

[@aartug1]

What about EBIT and other terms used in P & L?

[@TheCFOreport]

There's definitely more to the P&L. But concepts like EBIT or EBITDA aren't concepts that I have found most business owners need to understand to make smarter decisions around their financials.
Important for a fractional CFO, a CPA, or a bookkeeper to understand - less important for day to day understanding of the financial health of a business.

[@prathameshARE]

❤❤❤

[@TheCFOreport]

@@prathameshARE ❤️❤️❤️

[@MrRivii]

Thank You!