What’s Hidden In Your Profit and Loss Statement?
How much time do you spend with your Profit and Loss Statement (P&L)? If you’re like most business owners, the answer is a lot.
When reviewing these statements, we tend to start at the bottom and then work our way up looking for lines we can cut, based on poor performance at the bottom. When doing this, we often hurt future P&L results. Each line item should bring value, beyond the face value of the expense. Additionally, each item should tell a story with an opportunity for growth.
For example, there’s a hidden story in the fleet maintenance expense. There should be value well beyond the cost of the maintenance and the repair. When working with the right provider such as ARS Truck & Fleet Service, your maintenance and repair cost should drive the longevity of your vehicles, saving on capital expenses. The maintenance cost should drive down unplanned repairs and increase worker efficiency. Done correctly, this expense makes your company more productive and a better performer.
Fleet expenses should also drive the value of your brand by providing clean, attractive trucks. It drives safety and savings in workers compensation, translating into fewer accidents. It also drives company culture. Employees are proud of their vehicles, brand awareness is increased, and recruiting is easier when candidates know your name. How you manage your fleet sends a message to both your employees and your customers. Consider all these items when evaluating your profit and loss statement. Each line item in your profit and loss statement tells a story and if it doesn’t, maybe it’s time for a new approach.