Reading your P&L without an accounting degree
The P&L isn't a mystery. Three lines tell you almost everything.
Revenue, gross margin, net income
Top line, the percentage left after direct job costs, the percentage left after everything. Watch those three trends over time. That's most of what matters.
Compare to last year, not just last month
Seasonality makes month-over-month deceptive. Year-over-year is the more honest comparison.
Categorize expenses on purpose
If 'other' is your biggest expense category, the chart of accounts is broken. Clean categories make decisions possible.
Take your version of this question further
This is one operator-tested angle on the question. Your shop, your size, your trade, and your team change the answer. Ask your specific version inside Ask a Shop Owner to get a response grounded in how owners like you actually handled it.