It doesn’t matter if you’re an owner operator or a fleet manager, the purpose of any business is to make money. One report that can help a trucking company determine how the finances are working is the Profit and Loss Statement. The P&L, as it’s commonly known, gives a snapshot look at a business. This financial report if often requested by a bank or lending institution when filing a loan application.
Which One Do You Need? P&L vs. Cash Flow
It sounds like they’re the same time – profit and loss, and cash flow. But they are different documents that show different perspectives on a business’s finances. We need both, but they aren’t the same.
Cash Flow
Want to know where the money is moving? That’s the purpose of a cash flow report. This shows exactly where the money is coming in and where it’s going out. It’s very specific – payments, expenses – that can explain how much money is needed on a day-by-day basis. Operating expenses are clear in a cash flow statement. if there are any financial problems in a business, a cash flow statement may show them.
That’s why a report from a TMS trucking software package that shows both income and outgoing funds is so important. The ability to identify problems, such as expenses that are abnormally high or invoice payments coming in late, allow a business owner to resolve them. It shows how much money is on hand, which would be handy to know when you’ve got enough cash for a big purchase.
Profit and Loss (P&L)
Profit and Loss statements use exactly the same data as the cash flow statement. So what’s the difference?
A cash flow statement will tell a business owner that they have enough (or don’t) to make payroll. The P&L doesn’t make that distinction. It looks at the complete financial picture of a business but not with the details.
Some accountants call the P&L an income statement. It focuses on the money coming into a business, but it also compiles the expenses and deducts them. In the end, the P&L shows if the business is profitable.
In a cash flow report, there might be a major expense in one month which would make the business look like it’s in the red. For example, take a month when new tires are paid for. The month will look completely unprofitable on a cash flow basis, but the P&L will take into account the money that was saved for that expense.
Cash flow reports will show an owner if they have the money in hand to cover a emergency repair or if there’s enough cash to cover payroll. In a P&L, an owner will see how the business is increasing profits. If an owner want to expand and needs a loan, the P&L is the report that the loan officer will look at to see if there is a history or success.
TruckingOffice PRO’s Reports
Whichever you need, TruckingOffice PRO has a report already programmed for you.
Instead of trying to compile all these numbers into a spreadsheet, TruckingOffice PRO takes the numbers you have already entered into the TMS – trucking software – so you don’t have to reenter data or spend hours looking for it. It’s all inside the complete trucking management software to produce the reports on demand.
If you want a specific date – you can specify those for the reports. If you want to know how a specific truck is doing, you can run that report as well. Because TruckingOffice PRO reuses the data that’s already in the system, you can get the reports you want in a matter of seconds, at any time. Even in your rig!
P&L and Cash Flow Reports are part of the Trucker Stats™ that TruckingOffice PRO offers you. No extra costs. No upgrades. TruckingOffice PRO handles all this and more. Running your trucking business with a complete system – secure and available when you need it – saves you time and reduces your workload.
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Get your free trial of TruckingOffice PRO today. Just sign up – no credit card or checking account number is needed for you to explore all of the features of TruckingOffice PRO today.
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