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Where did my profit go?

profit-to-cash analysis

Pick one month, or one quarter, and use the same one in every box below.

You can leave any number blank. Blank lines stay out of your report.

Bottom line of your P&L for the period. Often labeled Net income.
Balance sheet, the Accounts receivable line under current assets. This period's number minus last period's. One shortcut: the Balance Sheet Comparison report in QuickBooks shows this period next to last period, and one run answers every change box on this page.

This period's number minus last period's. If it went down, type a minus.

Balance sheet, the Inventory line. This period minus last period.

This period's number minus last period's. If it went down, type a minus.

Balance sheet, the Accounts payable line under current liabilities. This period minus last period. Include the change in your credit card balances too. In QuickBooks they sit on their own line, not inside Accounts payable.

This period's number minus last period's. If it went down, type a minus.

Balance sheet, under liabilities: lines named Customer deposits, Unearned revenue, or Deferred revenue. This period minus last period.

This period's number minus last period's. If it went down, type a minus.

Balance sheet equity section, the Owner draws or Distributions line, total for the period. Or add up your transfers to yourself. Paychecks you get through payroll are already inside profit. Count only draws and distributions here.
Your loan statement: payments minus interest. Or the balance sheet loan balance, last period minus this period.
The Depreciation line on your P&L, or your accountant's year-end schedule. Depreciation is a cost on paper. No money leaves the bank, so we add it back.
What you paid for equipment this period: the increase in fixed assets on the balance sheet, or your purchase receipts.