Learning objective: Read a monthly Profit & Loss statement, separate tuition, CCS and other revenue, and identify what drives net income from month to month.

The Profit & Loss (P&L) statement has three parts: income at the top, expenses in the middle, and net income at the bottom. A monthly P&L shows each month side by side, which makes trends easy to see.

Nonprofits call this report the Statement of Activities. The layout is the same; the bottom line is called the change in net assets.

Harbor Oak’s P&L follows the same income and expense categories as the MSSA Budget Builder, so you can compare it line for line with a budget built in that tool.