If you spend more than you take in, then you have a problem. To create the future, you must "read" the present, and you can do this coherently, without errors, with the help of the P&L report. Find out further why an analysis of the profit and loss account can give you direction in business.
What is the P&L report and how does it help you?
In short, the P&L report is an analysis of revenues, expenses and profit earned that shows the financial position of a company over a certain period. The financial profit and loss report is drawn up semi-annually or annually, being also known as the income statement, statement of operations, statement of income or statement of financial performance.
The profit and loss ratio helps you see the construction company's ability to generate profit by increasing revenue, decreasing expenses, or both. Basically, you need a P&L report, which can be generated with the help of the SocrateERP solution, to find out the health of the business. More precisely, with such a report you know how well (or not) the company is performing and, therefore, what decisions to make to increase the business or to correct things where things are not looking so good.
In short, preparing a Profit and Loss report helps you see where the business is going based on the reported financial results. If you're not making a profit, you'll see what you need to improve and where you need to adjust spending.
What benefits does a P&L report give you?
First of all, the ability to make wise decisions. With not only this report at hand, but also the other performance indicators that you can set in SocrateERP, you can analyze the performance of your business and make the best decisions about income, expenses and investments that you can make based on the health of the organization you lead.
The P&L report gives you the opportunity to prove the success of the company. In business, any decision made must be based on numbers, because they don't lie. Reports show reality as it is and help you make the right decisions with as little risk as possible. We are not talking about the cases where you are talking to investors, you want to take a loan or you want to list the company on the stock exchange.
At the steering wheel of business, SocrateERP brings you visibility and control
SocrateERP gives you all the information and by default an overview of the performance of the construction company you manage. SocrateERP helps to effectively manage all processes in the company: procurement, management of contracts, costs, consumption, employees, equipment and machinery, maximizing profit through an efficient execution of each project and through the possibility of managing several projects with fewer resources, through the integration and automating key processes.
Financial reports and analyzes are automatically generated based on the data in the application showing all revenues, receipts, expenses, scheduled payments, cash flow, consumption of materials, people and machinery, all distributed by cost centers. All these reports are generated quickly, without hassle, and you can analyze the figures and decide with their help in favor of the company.
