Should You Prepare a Monthly Profit and Loss Account?

If you've been running a small business for a couple of years, you may be relatively happy with your performance and may even be thinking about expansion. Yet if you are simply relying on your own rudimentary calculations, you may not be in total control and run the risk of encountering problems down the road. While you may certainly create a set of accounts at the end of a trading year, would it be better if you were to craft a profit and loss statement each month instead?