Profit and Loss in a graphic design studio.

Profit and Loss in a graphic design studio. from Streamtime

By: Streamtime  08/06/2011
Keywords: scheduling software, Business Management Software, project management software

Your profit and loss account (P&L) shows business performance. It measures how much money you made, and how you made it, over a specific period. It can measure profitability of:

  • trading over short periods like a month
  • trading over longer periods like a year
  • specific projects,
  • specific clients.

Most P&L’s are set out in a logical format that’s easy to follow:

Download the dmzine  to see an explanation of the various parts of a P&L.

Some computerised accounting systems may lay the figures out differently, but when accounts are printed, they are generally shown in this format.

To make a P&L meaningful you should breakdown the income and expenses.

For example our accounts itemises Income under a sub-category of professional fees which includes design, photography/illustration, artwork, new media, design management and couriers/deliveries.

Expenses are broken down into 25 items such as accounting, bank charges, insurance, leases and rent through to staff training and WorkCover premiums.

The amount of detail really depends on the types of costs you need to track.

P&L’s are not a difficult concept and deal with the day-to-day running of a design studio. Understanding your P&L can ensure you have a profitable business.

illustration for Streamtime by 

Keywords: Business Management Software, Job Tracking Software, project management for creatives, project management software, scheduling software, studio management software, time management software, Time Recording Software, time tracking software, Timesheet Software,

Other news and updates from Streamtime

Choosing Project Management Software for a Creative / Graphic Design Company from Streamtime thumbnail
08/06/2011

Choosing Project Management Software for a Creative / Graphic Design Company

Choosing Project Management Software for a Creative / Graphic Design Company


Streamtime tops DBA user choice. from Streamtime thumbnail
08/06/2011

Streamtime tops DBA user choice.

Streamtime tops DBA user choice for Project Management Software.