What Every NH Business Owner Should Know About Profit & Loss Statements

Ryan Poirier
Nov 8, 2021
3 min read

Brown blobs on a background with a black blob dead center. Centered on the black blob is a green bar graph an orange and red set of arrows pointing up. Profit and Loss, What Does It Mean?!? A fake button says "Read More"

If you're running a business here in New Hampshire—whether it’s a landscaping company in Sunapee, a café in Concord, or a home services business based out of your garage—one of the most valuable financial tools in your arsenal is your Profit and Loss Statement (also known as a P&L or income statement).

It’s not just paperwork. It’s your scorecard.

And if you're not looking at one regularly, you’re basically driving without a dashboard.

Let’s break down what a P&L actually tells you, why it matters for NH businesses, and how it can help you make smarter decisions.

What Is a Profit & Loss Statement?

At its core, a P&L shows how much your business made, spent, and kept over a specific period (usually a month, quarter, or year). It gives you a clean breakdown of:

Revenue (your total income from sales or services)
Cost of goods sold (materials, supplies, subcontractor labor, etc.)
Operating expenses (rent, insurance, software, advertising, payroll)
Net profit or loss (what’s left over—if anything)

Think of it as a financial story: Where the money came from, where it went, and what’s left for you.

Why NH Businesses Should Care about Profit and Loss?

Here in New Hampshire, we don’t have a traditional income tax—but we do have the Business Profits Tax (BPT) and the Business Enterprise Tax (BET). Both are based on your financial activity, and your P&L is often the first place to start understanding what you may owe—or what you can legally reduce through smart planning.

✅ The P&L can help identify tax-saving opportunities like:

Whether to take the NH personal compensation deduction (unique to non-corporate NH businesses)
Whether your business crosses BPT/BET filing thresholds
Whether it’s time to switch entity types for tax efficiency

Most out-of-state accountants miss these nuances. We live and work here—we know how to use your P&L to legally lower your NH tax bill.

What You’ll Learn From Reviewing Your P&L

Even if you’re not “a numbers person,” a well-organized P&L will quickly tell you:

Are you actually making money—or just staying busy?
Which services or products are profitable (and which are bleeding cash)?
Can you afford to hire or give yourself a raise?
Are your marketing dollars pulling their weight?
Are your margins competitive in your industry?

Plus, banks and lenders require P&Ls if you’re applying for a business loan or line of credit. It’s also your foundation for tax prep, forecasting, and business valuation.

How Often Should You Look at Your P&L?

At a minimum, quarterly. But monthly is ideal—especially if you want to stay ahead of cash flow issues, tax surprises, or slow-season downturns.

We recommend setting aside 30–60 minutes a month to review your P&L with someone who can help you interpret it, identify risks, and make confident next steps.