Profit and loss report (P&L)
Enter the month’s sales and costs — see what you earned by month-end and where the money went.
What does this tool do? Takes all costs away from the month’s sales and shows what you keep at the end and which cost is above the limit.
How it works
- Enter the month’s sales — example café: 50,000 ₼.
- Enter costs: ingredients 15,000 ₼, staff 12,500 ₼, rent 5,000 ₼ and so on (example figures).
- Read the result: in the example net profit is 7,700 ₼ (15.4%), main costs (ingredients + staff) 55% — the common limit is 65%, so it is fine.
Monthly report
Common sector limits
These are common rough limits in the sector — not an official norm for Azerbaijan.
What is a P&L?
A P&L (profit and loss report) shows how much you sold in a month, what you spent it on and what was left at the end. Prepare it every month.
How the report is built
Total sales
− Ingredients and packaging
= Left after ingredients
− Costs you control
= Left after those
− Costs that rarely change
= Net profit
The P&L in plain words
Know what is behind each number — and control your costs.
Costs you control and costs you don’t
You control
Ingredients, staff, advertising, free treats, utilities and repairs change with your decisions. Most of your costs sit here.
Rarely change
Rent, taxes, insurance and depreciation stay about the same every month. Focus on the costs you control.
What are main costs (ingredients + staff)?
A restaurant’s two biggest costs are ingredients and staff; together they are the main costs. Common rule: keep them at or below 65% of sales.
Formula
Ingredients + staff
= Main costs
Main costs % = (ingredients + staff) ÷ sales × 100
Warning signs
If main costs (ingredients + staff) are above 65% (common rule), profit shrinks fast.
If net profit is below 5%, one bad month can push you into a loss.
If rent is above 10% of sales (common rule), the location may be too expensive.
If net profit grows for several months in a row, you can start thinking about a new branch or product.
DK Agency tip
Preparing a P&L every month is already a big step. Look at it weekly and you will spot problems before the month ends.
Read full articleOCAQ Panel
P&L, food cost and staff cost — automatic, in one panel.