Discover why the Profit and Loss (P&L) report is indispensable for your UK's female-led small businesses. Here are three compelling reasons why regular P&L reviews are crucial:
1. Financial Health Check: Your P&L is a vital health check for your business. Reviewing it will help you see trends that can grow your sales and identify areas hindering your progress.
2. Future Business Planning (Forecasting): As Maya Angelou said, "You can't really know where you are going until you know where you have been" and the same applies to P&L. Utilising historical data, often available through accounting software, aids in forecasting future scenarios. For instance, female-led retail businesses can leverage past Christmas sales data to plan for upcoming seasons.
3. VAT Threshold Compliance: P&L contains taxable turnover crucial for monitoring the VAT threshold. As you approach the threshold (currently £85,000, increasing to £90,000 on April 1st, 2024), timely registration is essential to avoid HMRC penalties. Staying vigilant ensures your female-led business has the time you will need to implement VAT into your business. If you have questions about VAT, check out my prior blog post, which answers the 5 most common questions.
Stay tuned to Abelha's Instagram as I'll be running a P&L reel series on Instagram, guiding you through P&L review techniques.
Hi! I am Marie, a down-to-earth bookkeeper, my goal is to ensure your financial recipe is just right for the unique flavour of your business. I virtually support female-led sole proprietors, micro-corporations and partnership businesses in England and Wales. My goal is for my clients to gain confidence in their financial matters while optimising profits. If you are interested in working with me, please contact me here.