You have been asked to prepare an annual Profit and Loss Statement for your department. What should you be aware of while preparing this financial management statement?

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You can format the annual Profit and Loss Statement using both current and prior year income and expense data. This formatting allows for the interpretation of data in context with the prior year for comparisons. Profit and Loss Statement formats vary among health care facilities. Some formats not only include extensive, detailed data relating to income and expenses, they can also include multiple years for comparison and percentages. For example, utility expenses may be shown as accounting for 6% of total expenses.

You Have Been Asked to Prepare an Annual Profit and Loss