The quick version · keep this
- Top: income, versus what you expected.
- Middle: direct costs, to get gross profit.
- Bottom: overheads, to get net profit.
- Ask: did we make money, what's creeping, better or worse?
01
Start at the top: income
This is what you earned. Check it against what you expected. A big gap is worth a look.
02
Middle: direct costs
The costs of doing the work, like freelancers and ad spend. Income minus these is your gross profit. This tells you if the work itself pays.
03
Bottom: overheads and the result
Rent, software, salaries, your pay. Take these off gross profit and you get your net profit, the real result.
04
Then ask three questions
Did we make money? Is any cost creeping up? Is this better or worse than last month?
Punctual does this bit
Punctual keeps your P&L current and lets you click any number to see what's behind it.
Terms in this guide