Bright Paws Grooming - Profit & Loss Statement (DRAFT)
- Period: January 1 – February 28, 2025
- Basis: cash basis, from bank/card data
- Prepared: from customer-supplied transactions (one account, USD)
1. Summary
| Metric | Jan 2025 | Feb 2025 | Total |
|---|---|---|---|
| Total Revenue | $5,556.45 | $4,504.00 | $10,060.45 |
| Gross Profit | $4,757.85 (85.63%) | $3,804.44 (84.47%) | $8,562.29 (85.11%) |
| Total Operating Expenses | $537.79 | $701.63 | $1,239.42 |
| Net Income | $4,220.06 (75.95%) | $3,102.81 (68.89%) | $7,322.87 (72.79%) |
Observations (from the data only):
- Revenue fell from $5,556.45 in January to $4,504.00 in February, a drop of $1,052.45 (about 18.9%). January had 4 Square deposits and February had 3 (plus one $200 Venmo payment). Deposit timing doesn't always match when the grooming was done, so part of this gap may be timing.
- Your contract groomer (J Lopez) is your largest cost at $1,250.00 for the two months, about 12.4% of revenue.
- Van costs total $283.64. That is $193.65 for fuel (3 Shell fills in Jan/Feb) and $89.99 for one Jiffy Lube visit. As you asked, these are shown as separate lines.
- The $2,899.99 Best Buy purchase (laptop and printer) is not in the P&L above. It is flagged as a possible fixed asset. If your bookkeeper decides it should be expensed instead, total net income would be $4,422.88 (43.96%) and February's net income would drop to $202.82.
- Square fees aren't shown anywhere in the data, so Square revenue is likely net of fees. Your true gross sales were probably somewhat higher, and your processing fees are not captured in this P&L.
2. Profit & Loss Statement
| Line | Jan 2025 | Feb 2025 | Total |
|---|---|---|---|
| REVENUE | |||
| Grooming Sales – Square (likely net of fees) | 5,556.45 | 4,304.00 | 9,860.45 |
| Grooming Sales – Direct (Venmo) | 0.00 | 200.00 | 200.00 |
| Total Revenue | 5,556.45 | 4,504.00 | 10,060.45 |
| COST OF SERVICES (Direct Costs) | |||
| Contract Groomer (J Lopez) | 600.00 | 650.00 | 1,250.00 |
| Grooming Supplies (PetSmart, Chewy, net of refund) | 198.60 | 49.56 | 248.16 |
| Total Direct Costs | 798.60 | 699.56 | 1,498.16 |
| GROSS PROFIT | 4,757.85 | 3,804.44 | 8,562.29 |
| Gross margin % | 85.63% | 84.47% | 85.11% |
| OPERATING EXPENSES | |||
| Advertising & Marketing (Google Ads) | 150.00 | 150.00 | 300.00 |
| Bank & Payment Processing Fees | 15.00 | 15.00 | 30.00 |
| Insurance (State Farm) | 142.00 | 142.00 | 284.00 |
| Licenses & Permits (City of Austin) | 0.00 | 125.00 | 125.00 |
| Software & Subscriptions (Adobe) | 22.99 | 22.99 | 45.98 |
| Telephone & Internet (AT&T) | 85.40 | 85.40 | 170.80 |
| Vehicle – Fuel (Shell) | 122.40 | 71.25 | 193.65 |
| Vehicle – Van Maintenance (Jiffy Lube) | 0.00 | 89.99 | 89.99 |
| Total Operating Expenses | 537.79 | 701.63 | 1,239.42 |
| OPERATING INCOME | 4,220.06 | 3,102.81 | 7,322.87 |
| Other Income | 0.00 | 0.00 | 0.00 |
| Other Expense | 0.00 | 0.00 | 0.00 |
| NET INCOME | 4,220.06 | 3,102.81 | 7,322.87 |
| Net margin % | 75.95% | 68.89% | 72.79% |
Classification notes:
- Contract groomer as a direct cost: J Lopez directly delivers your grooming service, so I placed the payments under Direct Costs. Some bookkeepers prefer "Contract Labor" under Operating Expenses instead. Moving it would change Gross Profit but not Net Income.
- Grooming supplies: I assumed the PetSmart and Chewy purchases are grooming supplies (shampoo, tools, and so on) used on customers' dogs. The $24.99 Chewy refund reduces this line rather than counting as revenue.
3. Excluded from P&L (Reconciliation Items)
These rows moved money but are not income or expenses.
| Date | Description | Amount | Reason |
|---|---|---|---|
| 2025-01-10 | TRANSFER TO SAVINGS 4471 | -1,000.00 | Transfer to your own business savings account (per your note) |
| 2025-01-25 | OWNER DRAW | -1,500.00 | Owner draw / distribution |
| 2025-02-19 | BEST BUY 00412 | -2,899.99 | Possible fixed asset, ask your bookkeeper. Laptop and printer for the business (per your note) |
| Total excluded outflows | -5,399.99 | Jan: 2,500.00 · Feb: 2,899.99 | |
| Total excluded inflows | 0.00 |
About the Best Buy purchase: Equipment like a laptop and printer is sometimes recorded as an asset and expensed over time, and sometimes expensed right away. The right treatment depends on your accounting policy and tax situation. Your bookkeeper or tax professional should decide. I kept it on its own line so it is easy to see and easy to move.
4. Self-Check
| Check | Result |
|---|---|
| Month columns sum to Total (every line) | ✅ Yes |
| Money in: P&L inflows $10,085.44 (revenue $10,060.45 + Chewy refund $24.99) + excluded inflows $0.00 = total in-period money in $10,085.44 | ✅ Match |
| Money out: P&L outflows $2,762.57 (direct-cost purchases $1,523.15 + operating expenses $1,239.42) + excluded outflows $5,399.99 = total in-period money out $8,162.56 | ✅ Match |
| Cash tie-out: Net income $7,322.87 − excluded items $5,399.99 = $1,922.88, which equals the balance change from $7,000.00 (implied opening) to $8,922.88 (closing) | ✅ Match |
Reconciliation difference: $0.00.
5. Transaction Detail (all 32 rows)
| # | Date | Description | Amount | Category | Confidence |
|---|---|---|---|---|---|
| 1 | 2025-01-02 | SQUARE INC DEPOSIT | 1,240.50 | Revenue – Square | High |
| 2 | 2025-01-03 | PETSMART #1123 AUSTIN TX | -86.12 | Direct – Grooming Supplies | Medium |
| 3 | 2025-01-05 | SHELL OIL 57442 | -64.30 | Vehicle – Fuel | High |
| 4 | 2025-01-06 | ADOBE *CREATIVE CLOUD | -22.99 | Software & Subscriptions | High |
| 5 | 2025-01-08 | SQUARE INC DEPOSIT | 1,580.00 | Revenue – Square | High |
| 6 | 2025-01-10 | TRANSFER TO SAVINGS |