School Profit And Loss Management

School Profit And Loss Management

School Profit And Loss Management A school profit and loss is a financial report summarizing a school’s revenues, expenses, and profits and losses over a given period.

The Profit & Loss statement shows a school’s ability to generate sales, manage expenses, and create profits. It is prepared based on accounting principles that include revenue recognition, matching, and accruals, which makes it different from the cash flow statement.

Structure of the Profit and Loss Report

A School’s profit and loss are portrayed over some time, typically a month, quarter, or fiscal year. For Schools that operate on a seasonal basis, using a fiscal year may be beneficial. This is because it may provide a more accurate reflection of the school’s operations, allowing revenues and expenses to align better. For instance, it is common for schools to end their fiscal year with an annual exam.