finance
P&L Diagnostic
Find the 3 lines silently eating your margin.
2-3 hours for the audit. Quarterly review of 30-60 min.
What it is
13-month P&L analysis broken to individual line items. Identifies revenue concentration, margin bleeders, and cost drift.
When to use it
Quarterly minimum. Annually as part of strategic planning.
How it works
- 1.Pull 13 months of P&L data from your accounting software
- 2.Categorize every line: direct revenue, direct delivery cost, overhead, founder draw
- 3.Sort by trend: which lines are growing, flat, declining
- 4.Identify margin compression: where is the cost growing faster than revenue
Outcome
Specific identification of 3-5 line items eating margin you didn't see. Most service businesses recover 5-10% margin within 60 days of this audit.