Chapter 3 — Profit & Loss Statement

Discover why revenue and cash are not the same—and how this distinction affects financial reporting and business decisions. Learn when revenue should be recognised, how Accounts Receivable and customer prepayments work, and why invoices do not always reflect earned income. Through practical examples, explore the relationship between revenue, profitability and cash collection. Understand how incorrect revenue recognition can lead to misleading financial results. Designed for Data Engineers and aspiring Data Leaders, this lesson helps you build accurate revenue models in Power BI and Microsoft Fabric, reconcile financial data and deliver reliable insights to CFOs and executives.

Revenue is growing, but why is Gross Profit falling? Discover how Cost of Sales (COGS) affects profitability and why controlling direct costs is essential for business performance. Learn to calculate Gross Profit and Gross Margin, distinguish direct costs from operating expenses, and identify how labour, materials and subcontractors influence financial results. Through practical business examples, explore how incorrect GL account classifications can distort profitability. Designed for Data Engineers and aspiring Data Leaders, this lesson develops the skills to analyse Gross Margin in Power BI and Microsoft Fabric and deliver meaningful financial insights to CFOs and executives.

Revenue is growing, but is the business actually becoming more profitable? Discover how Gross Profit and Gross Margin reveal the relationship between revenue and direct costs. Learn to calculate profitability, analyse customer and site performance, and understand why higher margins do not always mean stronger financial results. Through practical examples, explore how pricing, labour costs, revenue mix and accounting classifications influence profitability.