How to Read a Profit & Loss Statement (For Beginners)

✅ Special Xero offer: Get 90% off for 6 months using this link: https://referrals.xero.com/GeorgeV_Xerohowto . Terms & Conditions apply.* In this video, we’re breaking down how to read a Profit & Loss (P&L) statement to help you look beyond your bank balance and understand the true financial health of your business. We’ll walk through the essential components of the report, including Revenue, Cost of Goods Sold (COGS), Gross Profit, Operating Expenses, and the all-important Net Profit. We also highlight how Xero can automate this process, turning manual spreadsheet math into real-time insights. Whether you’re a small business owner trying to spot where your money is going, or a beginner looking to master financial basics, this guide will help you interpret the numbers that matter most for your business growth. 👋🏼 Work with me: https://vlasyev.com ✌🏽 My website: https://georgevlasyev.com 🚀 My affiliate marketing course: https://georgevlasyev.com/academy 💌 My newsletter: https://georgevlasyev.com/resources 🌍 My Instagram: https://instagram.com/georgevlasyev Timestamps: 0:00 Intro 0:41 The Simple Definition 1:38 Revenue (The Top Line) 2:32 Cost of Goods Sold (COGS) 3:19 Gross Profit (The First Reality Check) 4:02 Xero Integration 5:04 Operating Expenses (The Overhead) 5:55 Net Profit (The Bottom Line) 6:39 Analysis 📄 Disclosure Some of the links are affiliate links. If you make a purchase through them, we earn a small commission at no extra cost to you. This helps us keep our videos free for everyone.