This is my take on things, there are those that may disagree.

I am also including the only accounting joke I have created “What is the difference between Russian profit and American profit?

A Profit and Loss Statement is one of three important financial measurement tools. It captures five areas of financial measurement.

There are two methods of recognizing income and expense.

Cash Based Accounting will only recognize income when the money is in the bank and will only recognize expense when it is paid.

Accrual Based Accounting recognizes income as soon as it is billed and recognizes expense when you receive the invoice.

I prefer Accrual Based because it shows the complete financial picture, however you must remind yourself that Accrual Based Accounting may not reflect reality if everyone billed has not yet paid and if you have not paid all your bills.

That’s why the Balance Sheet was invented.

Among other things it accounts for the money people still owe you (Accounts Receivable) and the money you have not yet paid (Accounts Payable)

Revenue: The money you receive for doing the work you do. I like to measure everything as a percentage of Revenue, so Revenue always is 100%

Cost of Sale: The money you spend to do the work. I only count costs that can be directly tracked to specific jobs. If a cost is shared between two or more jobs, it should go into Overhead. I.e., …you cannot accurately track the amount of gasoline used by your truck for a specific job so usually gasoline is a line item in overhead.

Next week rest of the profit and loss

 Some with interesting methods for improvement in business or self.

When I find a book that you should read, I’ll share.

Here is one.

The little Golden Book of YES! Attitude.

By Jeffrey Gitomer

In less than 200 pages Jeffrey Gitomer blasts the reader with positive affirmations.

This book does not build chapter to chapter.

You can begin in the middle and move to the front or choose a different page each time you finish one.

There are no chapters only elements of focus on attitude.

Jeffrey identifies six elements, however, he calls the sixth element ‘Element five point five.’

• Insight to your inside attitude
• Self Awareness
• Actions
• Attributes
• Achievement
• Fulfillment

At the end of a few Element selections, he gives you the opportunity to take a self-evaluation test with the rating system of 1-5… 1 Never, 2 Rarely, 3 Sometimes, 4 Frequently and 5 All the time.

It’s an interesting tool and can help clarify where you stand in his total rating system which is sort of a positivity index.

The book is cleverly laid out with lots of eye-catching font colors, size changes, cartoons and cute drawings.

While “The Little Gold Book of Yes! Attitude” is not deeply philosophical it’s a good book to have around.

It could be visited every time you need your ‘Attitude Battery’ charged.

To follow my often-used food metaphor this book is a great light appetizer for those days you just don’t want to digest a full meal.