What is Profit and Loss P&L?

ContentGet the full picture of your business’s financial healthCalculate Your Net ProfitRealized Profits and LossPnL unexplainedResources for Small Business Lenders and investors often rely on P&L budgets to help assess risks. They are used to prove that the business has a realistic and well-thought-out plan to execute on. This helps instill confidence in both lenders and investors that the management team is capable, and that the business is a going concern. P&L stands for profit...

3 Words for a COVID-19 World: Flexible Budget Variance

ContentAdvantages of flexible budgetingUsage in Variable Cost EnvironmentBetter Cost ControlsDisadvantagesSales Volume as a Measure of Activity of a Flexible Budget However, this approach ignores changes to other costs that do not change in accordance with small revenue variations. Consequently, a more sophisticated format will also incorporate changes to many additional expenses when certain larger revenue changes occur, thereby accounting for step costs. By incorporating these changes into the budget, a company will have a tool...

Payback Period Analysis EME 460: Geo-Resources Evaluation and Investment Analysis

ContentAdvice from VCs: Why CAC Payback Period is critical4.4.1 Payback period index evaluationSustainability modelingIt presumes ongoing profitabilityWhat Are the Advantages of Calculating the Payback Period?Cost-Benefit Analysis of Safety Measures For example, if your company is using social media to convert customers, try implementing some smarter retargeting campaigns to optimize your marketing spend. You can use retargeting to connect with prospects that are already in your funnel, like free trial users. Or, you can use it...