Section 7: A typical P&L

Earlier on we showed you a very basic P&L. Having reviewed the previous sections you will now be able to view a more detailed P&L and review the different aspects:


Review of the P&L example

The P&L statement shows an example of a clinic P&L for month 7 and year to date (YTD). It shows a breakdown in revenue and then all costs associated with generating revenue and running the business as a whole.

Revenue: This shows a positive result of £3,510 up on the revenue target for the month and £21,333 up on YTD. This is a positive result for the clinic and overall shows great performance. It is important to breakdown your revenue to different budgeted elements to measure performance in specific areas of the business. As you can see for the month the clinic were £110 off their doctors target, however for the year they are £24,365 up which shows a great position. The product revenue is strong both for the month and YTD. The practitioner revenue however shows great performance for the month with £2,365 up on budget, however for YTD the clinic is performing £10,110 behind budget which would need to be investigated.

Cost of sales: This shows an overspend of £1,169 for the month and £9,948 YTD. The ability to identify areas of costs you have overspent at allows you to identify trends where sales performance is different for other groups. We will review performance in the next section.

Labour costs: Labour costs are in line with budget for the month with only a small variance of £355, this shows great control. For the YTD it shows an overspend of £6,022. You can expect to see an overspend if overall revenue is up but this should be in line with the trend of sales.

Overheads: These are a mixture of fixed and variable costs. There are slight variances across the group of costings. Overall the overheads are slightly overspend for budget for the month at £88 and YTD a larger overspend of £3,581.

Property costs: These costs should always be fixed and actual costs should be in line with budget. As you can see here there is no variances both for the month or the year.

Marketing: There is an underspend of £643 for the month, however YTD the clinic have overspent by £3,245. This should be investigated and ensure that marketing campaigns are tracked for performance and success.

Brand overheads: There is little movement within this group of costs. The monthly performance shows and underspend of £280 and YTD overspend of £50. These are a mixture of fixed and variable costs and should be monitored to ensure monthly spends are in line with budget to not accrue a large deficit for the YTD performance.

Depreciation: These costs should be in line with budget unless there have been any asset purchases or disposals in the year. The variance for the month is an overspend of £32 and YTD £487.

Profit / Loss before taxation: The clinic is performing well with a pre-tax profit of £7,137 which is £1,007 up on budget. YTD is also extremely strong with a pre-tax profit of £51,944 which is £5,564 up on budget.