08/13/2026
When was the last time you reviewed your Profit & Loss statement and Balance Sheet?
If your answer is "I don't know" or "Not recently," you're not alone. Most owners don't review them at all. And that's exactly why they're leaving money on the table every single month.
Here's What Most Owners Get Wrong:
They think their numbers are just for taxes. You run your P&L through an accountant in March, file taxes, and that's it.
That's backwards.
Your P&L and Balance Sheet aren't tax documents. They're your business scoreboard. They tell you how your business is actually performing.
And you should be looking at them every month.
What Your Profit & Loss Statement Tells You:
Are you actually profitable? Not "did revenue go up," but real profit after every expense is accounted for. Is that number going up, down, or flat month-to-month?
Where is money leaking? Are expenses trending up? Is your rent/overhead reasonable? Are you spending too much on inventory that doesn't sell?
What's your profit margin trend? Is it getting better or worse? Why? This tells you if your pricing strategy is working.
Are you on track for your annual goal? If your goal is $150K profit this year and you're already 6 months in, are you tracking to hit it? Should you adjust?
What Your Balance Sheet Tells You:
How healthy is your cash position? Do you have enough cash to survive a bad month? Can you weather an emergency?
How much inventory are you carrying? Is it reasonable? Is too much capital tied up in unsellable product?
What are you actually worth? Assets minus liabilities = your net worth. Is your business building value or just spinning wheels?
What's your debt position? How much do you owe? Are you paying it down or taking on more? Can you afford expansion or is debt too high?
Can you get financing if needed? Banks look at your balance sheet to decide if they'll lend to you. Is yours strong enough?
The Hard Truth:
Most owners think reviewing financial statements is boring accounting stuff. It's not. It's your business talking to you. Telling you what's working, what's not, and where you should focus your energy.
Ignoring these reports is like flying a plane without looking at your instruments. You might be fine. Or you might be heading straight into a mountain.
The best owners review these numbers every month. Not because they love spreadsheets. But because they want to know their business.
If you're not reviewing your P&L and Balance Sheet monthly, we need to talk. I'll show you exactly what to look for and help you build a simple system so you can do this yourself (or have me do it for you).
This one practice will transform how you run your business.
Best,
Doug Maffett
(561) 702-9516
P.S. Pro tip: The best time to review is early each month, as soon as your numbers close. Not in March. Not at year-end. Monthly. That's when the insights are fresh and actionable.
