All your settlement statements and expense receipts should be accumulated throughout the month and turned into a profit and loss statement, also called a financial statement or a statement of earnings. The statement should tell you how many miles you drove, what your revenue was, what your costs were and how much money you made during the month – your profit or loss.
This should be done on a monthly basis so you can see how you are doing each month. You also can compare month to month to see if you are improving. The statement should include ratios like cents per mile and percent of revenue so you can analyze your performance. You also will be able to compare your profit and loss statement to your budget to see if you are on track with your plan.
In addition, the statement should have a year-to-date (YTD) column that accumulates each month into a total for the whole year.
A profit and loss statement is a valuable tool for your business. Not only does it show how you are doing in your business, it allows you to analyze your operation and pinpoint areas that require attention.