Truth about P&L

Is Your Small Business Flying Blind? The Surprising Truth About Your P&L

by Daniel Richards in Dan's Blog

I’m often surprised by how many small business owners don't regularly review their finances. Some wait until the end of the quarter, only to get a summarised email from their accountant with a few thoughts. That’s like trying to win a basketball game without ever looking at the scoreboard—it just doesn't make sense.

Your business's financial health isn’t a mystery to be solved every three months. It’s a live, dynamic story that you should be reading every single week. Knowing your numbers isn't just for your accountant; it’s the starting point for making smarter, more confident decisions.

If you want to move from guesswork to strategic action, you need to create routines that become powerful habits. What gets measured, gets results.

Start with the Scoreboard

The first step is to treat your Profit & Loss (P&L) statement like your business’s scoreboard.

  • Review it weekly. Don’t wait for your accountant to send a summary. Set a non-negotiable routine to review your P&L at least once a week. This allows you to spot trends, identify issues, and celebrate wins in real time.

  • Find What's Working (and What's Not). As you review your P&L, ask yourself a few key questions:

    • Where are my biggest wins coming from?

    • What expenses are higher than expected?

    • Are my key metrics moving in the right direction?

Measure What Matters

Once you have a handle on the big picture, you can set up clear lead measures to focus your team on what really matters. Lead measures are the daily or weekly actions that drive your long-term results.

For example, if your P&L shows that sales are down, a lead measure could be "make 20 client outreach calls per week." If profitability is slipping, a lead measure could be "reduce average material waste by 5%." These are tangible actions your team can control, which directly impact your P&L.

Create Visibility

Just like in a basketball game, everyone on the team should be able to see the score.

Create clear, visible scoreboards that track your key lead measures. This could be a physical whiteboard in the office or a digital dashboard. When your team can see whether they are winning, it fosters a culture of ownership and accountability. They’ll be motivated to hit the targets, and everyone will feel like a key player in the game.

The Game of Business

You wouldn’t play a game of basketball or football without a scoreboard, a playbook, and a way to know if you're winning or losing. So why would you run your business—the game of your life—without one?

Take control of your numbers. Set up the routines. Build the habits. And start playing the game of business with the clarity you need to win.

Book Your Free Discovery Call HERE

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