![]() Understanding your HVAC company’s P&L statements is key to your HVAC business’ success. That’s why, these insights are key in growing your HVAC company’s efficiency, sales, and overall profitability. And, in the second scenario, you can stop offering your HVAC services to out-of-area calls.Īs you can see, your P&L statements offer insights you can use to make real-world decisions that will have a big impact on your business. In the first scenario, you can scale back your salaried contractors while adding independent contractors during your busiest months. Second, consider what you might do if your P&L statements show your out-of-area job calls have come with very costly travel expenses. HVAC Contractors Should Build a Strategic Plan using their P&L Statements Two scenarios:įirst, imagine reviewing your HVAC company’s P&L statements to learn which months you are generally most profitable. ![]() P&L Statements help you identify problems that are eating away at your profits and gains where you should be focusing your efforts 3. Once you are familiar with these elements, your P&L statements will become an effective decision-making tool rather than an obligation. Net Profit – total amount of revenue you earned minus expenses.Gross Profit – total amount of revenue you earned minus GOGS.Revenue – any income you earn from your HVAC services, used equipment sales, and also interest.Expenses – the operational costs, such as employee salaries or equipment insurance.Cost of Goods Sold (COGS) – the expenses that make up your HVAC services, such as labor, or equipment-maintenance fees.
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