Experience has shown that most small businesses have a profit and loss statement that is arranged in a format that was determined by their accountant. While that arrangement may work for the accountant, it is not a format that allows the small business owner to understand the information so that they can make better decisions about their business.

This calculator allows you to use our sample data, or input the information from your profit and loss statement to see how our suggested format can give you more insight to your busienss. In the traditional format you know your gross profit, gross margin, operating expenses and net profit. However, you do not get a clear image of how your operating expenses are being spent.

After you look at the data in the traditional profit and loss statement, there is a bottom of that profit and loss statement which will allow you to move your data to the new format we are suggesting.

In the new format, your operating expenses will appear in groups; advertising, occupancy, payroll, and 'other operating expenses'. Each of the groups are subtotaled as well as expressed as a percentage.

There are additional columns in the new format where you can enter the data for 'year to date', 'same month last year', 'year to date last year' and 'budget'. This new format will give you the percentages and totals for each of the groups as well as give you a comparison for the 'year to date' and 'budget'.

Again, the experience from having worked with many small business owners and having taught this in many educational sessions has shown that this 'logical profit and loss statement' allows the owner to better understand what has happened in their business as well as make decisions about the operation of their business.