{"id":3133,"date":"2019-12-29T09:22:46","date_gmt":"2019-12-29T14:22:46","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=3133"},"modified":"2026-02-12T05:11:22","modified_gmt":"2026-02-12T10:11:22","slug":"checklist-create-and-use-a-profit-and-loss-pl-statement","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/checklist-create-and-use-a-profit-and-loss-pl-statement\/","title":{"rendered":"Checklist: How to prepare a profit and loss (P&amp;L) statement"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tChecklist: How to prepare a profit and loss (P&amp;L) statement\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col col-8 col-lg-4 entry-header__image\">\n\t\t\t<figure class=\"entry-header__thumbnail js-hero-section\">\n\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2017\/12\/Profitandlossstatement-1064x810.jpg\" class=\"entry-header__thumbnail-image\" alt=\"Profit and loss statement\" fetchpriority=\"high\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2017\/12\/Profitandlossstatement-1064x810.jpg 1064w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2017\/12\/Profitandlossstatement-768x585.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2017\/12\/Profitandlossstatement-1536x1169.jpg 1536w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2017\/12\/Profitandlossstatement.jpg 1675w\" sizes=\"(max-width: 1064px) 100vw, 1064px\" \/>\t\t\t<\/figure>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2019-12-29T09:22:46-05:00\">December 29, 2019<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Checklist: How to prepare a profit and loss (P&amp;L) statement\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/checklist-create-and-use-a-profit-and-loss-pl-statement\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/alexhague\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2017\/10\/AlexHague.jpg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Alex Hague<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Whether you\u2019re getting ready to launch your start-up, or you are an established business, you need to be able to measure your results.&nbsp; What is one of the best indicators of performance and business health?&nbsp; Easy \u2013 the amount of <u><a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/what-is-net-profit\/\">profit<\/a><\/u> you have generated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The best way to see this is by using your P&amp;L.&nbsp; <u><a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/profit-loss-statement\/\">A profit and loss statement<\/a><\/u> (P&amp;L or an income statement) provides a financial snapshot of a business over a specific period of time.&nbsp; The statement includes business income, operating costs, and expenses used to calculate total business profit or loss for a specified financial period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">P&amp;L statements can help you manage your business better and <a href=\"https:\/\/www.sage.com\/en-us\/blog\/5-ways-to-manage-your-cash-flow\/\">keep your financials on track<\/a>. A monthly statement can be used to help monitor the performance of your business against stated projections\u2014reflecting a profit, loss, or break-even situation. If problems are identified within the statement you will have a chance to correct before anything gets out of hand.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-managing-a-p-amp-l\"><span lang=\"EN-US\"><span style=\"color: #000000;\">What is managing a P&amp;L?<\/span><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses need to make informed decisions. Many of those decisions are only possible through a careful review of a profit and loss statement. Managing a P&amp;L involves the responsibility of modeling expenditure, monitoring financial target progress, and informing others of about what you learn.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Someone has to be held accountable for the performance of a business. Filing tax returns, communicating with shareholders, and making management decisions depend on the responsible management of a profit and loss statement. The responsibility of managing a P&amp;L is what underpins all financial accountability within a business, as well as creates an accurate record of that business\u2019s performance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-calculate-profit-and-loss\">How to calculate profit and loss<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">How you use your P&amp;L statement affects the level of detail required to create the statement. You may choose to monitor only a high-level overview of the business, or you may want to break down data by department or product line to pinpoint income and expenditure more precisely.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Establish recording systems. Effective systems and procedures need to be set up to record the necessary information for inclusion in your P&amp;L statement. Consider where you can gain efficiencies in preparing these statements; your time is precious and should be used making business decisions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-gather-your-data\"><strong>1. Gather your data<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">\u25cf <strong><a href=\"https:\/\/www.sage.com\/en-us\/blog\/free-invoice-templates\/\">All sales invoiced<\/a> for the period<\/strong>. Sales are based on the date of the sale or invoice date, and not on the actual date on which the customer pays.<br>\n\u25cf <strong>Expenses generated<\/strong>. This includes administrative expenses, R&amp;D expenses, interest, taxes<br>\n\u25cf <strong>The value of any stock held.<\/strong> The value should reflect the opening and closing balances. The closing balance may be higher or lower than the opening balance, depending on the sales and purchasing activities during the period.<br>\n\u25cf <strong>All purchases and operating expenses<\/strong> (overhead and labor associated with your business operations \u2013 rent, inventory, marketing budget, payroll), except capital items (e.g. machinery or furniture) \u00e0 these end up on your balance sheet<br>\n\u25cf <a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/what-is-depreciation\/\"><strong>Depreciation<\/strong><\/a> expense of your capital items (i.e. equipment, property, buildings, etc).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-check-accuracy\"><strong>2. Check accuracy<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Ensure your figures are correct. Do not include purchases of items that are classified as capital expenditures, such as company vehicles or equipment as they are not directly related to day-to-day operations. You can, however, include an amount to cover the depreciation of the capital items.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-prepare-the-statement\"><strong>3. Prepare the statement<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once you have gathered all the information required, you are ready to produce your P&amp;L statement. Also read our article on <a href=\"https:\/\/www.sage.com\/en-us\/blog\/cash-flow-statement-explained\/\">cash flow statements<\/a> to learn more about the financial health of your business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-ensure-regular-preparation-of-p-amp-l-statements\"><strong>4. Ensure regular preparation of P&amp;L statements<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">To keep tight control on your business financials, a new P&amp;L statement should be prepared at the end of each month. Some small businesses opt to prepare statements more infrequently, for example, quarterly or half-yearly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-investigate-discrepancies-and-reconcile\"><strong>5. Investigate discrepancies and reconcile<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Check for any discrepancies revealed by your P&amp;L statement. Careful monitoring will enable you to identify issues that can impact financial results.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-6-analyze\"><strong>6. Analyze<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Now that you have your statement prepared, how do you use the data to make business decisions? Consider metrics like gross margin, operating margin, net profit margin, ROE\/ROA, inventory turnover to understand the health and direction of your business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Editor&#8217;s note: This article was originally published December 2017 and has been updated for relevance.&nbsp;<\/em><\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Get your cash flow template<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Our easy-to-use template will help you understand the cash coming in and going out of your business so you can make smarter decisions.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-8fd32b11-050f-4828-89a5-aae504126966\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/01\/GettyImages-561609507-1024x576-1-e1672917871162.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/01\/GettyImages-561609507-1024x576-1-e1672917871162.jpg 800w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div 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48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/cash-flow\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tCash Flow\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/starting-a-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tStarting a business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li 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https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0640-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-30T07:32:53-04:00\">September 30, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">12 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title 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business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-a-deferred-tax-liability\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1329013231-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1329013231-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1329013231-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1329013231-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-29T12:11:03-04:00\">September 29, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">14 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tDeferred tax liability: A practical guide\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-27939 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-boss-your-business tag-business-intelligence tag-compliance tag-growing-a-business tag-small-business tag-staying-competitive business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/invoice-vs-receipt\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-814559004-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-814559004-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-814559004-768x432.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-814559004-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-28T06:31:39-04:00\">September 28, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tInvoice vs. receipt: What\u2019s the difference and why does it matter?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-31288 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-boss-your-business tag-cash-flow tag-growing-a-business tag-small-business tag-staying-competitive business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/outstanding-checks-bank-reconciliation\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-684x384.jpg\" class=\"card-post__image\" alt=\"A woman on earophones taking notes\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-768x432.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-24T10:28:33-04:00\">September 24, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat are outstanding checks in bank reconciliation? How to identify, calculate, and manage them\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-31399 post type-post status-publish format-standard has-post-thumbnail hentry category-accountants category-money-matters tag-accountants tag-accounting-101 tag-boss-your-business tag-business-continuity tag-cash-flow business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-an-nsf-check\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-677893494-684x384.jpg\" class=\"card-post__image\" alt=\"High performance is key for businesses\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-677893494-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-677893494-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-677893494-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-16T07:48:37-04:00\">September 16, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">8 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tNSF check meaning: What is an NSF check?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Whether you\u2019re getting ready to launch your start-up, or you are an established business, you need to be able to measure your results.&nbsp; What is one of the best indicators of performance and business health?&nbsp; Easy \u2013 the amount of profit you have generated. The best way to see this is by using your P&amp;L.&nbsp; [&hellip;]<\/p>\n","protected":false},"author":332,"featured_media":3203,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_is_cornerstone":"","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":"","_yoast_wpseo_schema_page_type":"","_yoast_wpseo_schema_article_type":"","_sage_video":false,"_yoast_wpseo_focuskeywords":"[]","_yoast_wpseo_keywordsynonyms":"[\"\"]","_yoast_wpseo_primary_category":"43","sage_membership_post_content_type":"article","sage_membership_post_featured_video_id":"","sage_membership_post_video_type":"trailer","sage_membership_post_featured_video_duration":"","post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[43],"tags":[299,152,155],"business_type":[40],"lilypad":[],"context":[102],"industry":[56,54],"persona":[96,97],"imagine_tag":[230,231],"coauthors":[688],"class_list":["post-3133","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-cash-flow","tag-starting-a-business","tag-staying-competitive","business_type-small-business","industry-ecommerce","industry-retail"],"sage_meta":{"region":"en-us","author_name":"Alex Hague","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2017\/12\/Profitandlossstatement.jpg","imagine_tags":{"230":"Small business","231":"Start up business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/3133","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/332"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=3133"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/3133\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/3203"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=3133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=3133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=3133"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=3133"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=3133"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=3133"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=3133"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=3133"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=3133"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=3133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}