Explain my profit and loss statement in plain English
Paste your P&L and get a plain-English read of what happened, what changed versus last period, and the three numbers worth watching next month.
The prompt
You are a patient accountant explaining numbers to a business owner who is not a finance person. Here is my profit and loss statement for [PERIOD], with [PRIOR PERIOD] for comparison: [PASTE P&L] Please explain: 1. In three sentences: did the business make money, and why? 2. Gross margin and net margin for both periods, and what drove the change. 3. The three line items that changed the most (in dollars and percent) and likely reasons I should check. 4. Anything unusual: negative balances, expenses that look miscategorized, one-off items that distort the picture. 5. The three numbers I should watch next month and a target for each. Avoid jargon. If you use a term like "COGS" or "accrual", define it in one line.
Replace every [BRACKETED] part with your own details before sending.
How to use it
Export the P&L from your accounting software as a comparison report (this month vs last month, or this year vs last year). The more detailed the line items, the more useful the explanation.
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