How to answer Profit and Loss P&L Job Interview Questions (2024)

FAQs

How to answer Profit and Loss P&L Job Interview Questions? ›

This is more of a mindset than anything. Tell them, though you were not directly responsible for p&l, that you understand it on a fundamental level and that you are looking forward to coming up to speed in this area and being in a position where you will have a more active role with it.

P&L responsibility goes way beyond merely overseeing a financial document. It involves managing every aspect that impacts the profit and loss statement of a business unit or the entire company. This responsibility signifies a deep trust placed in a leader's capability to influence the company's financial health.

Profit & Loss (P&L) management is the process of monitoring, recording, and directing your business's revenue and spending. P&L management includes activities like revenue retention and optimization, customer churn, pricing, and cash flow management.

A profit and loss (P&L) statement, also known as an income statement, is a financial statement that summarizes the revenues, costs, expenses, and profits/losses of a company during a specified period. These records provide information about a company's ability to generate revenues, manage costs, and make profits.

To explain it, try to split the P&L into the 3 main segments: sales, cost of sales, and expenses. The difference is Net Income. Use the % of sales ratios in your discussion.

A profit and loss account will include your credits (which includes turnover and other income) and deduct your debits (which includes allowances, cost of sales and overheads). These are used to find your bottom line figure – either your net profit or your net loss.

The report is divided into two sections: income and expenses. Your total revenue is listed under the income section, while your total expenses are listed under the expenses section. To calculate your net profit or loss, simply subtract your total expenses from your total revenue.

The main categories that can be found on the P&L include: Revenue (or Sales) Cost of Goods Sold (or Cost of Sales) Selling, General & Administrative (SG&A) Expenses.

How do you walk through a P&L? ›

Focus on results over duties: Highlight what you've achieved rather than the tasks you were assigned. Whether it's "P&L management of a $100M budget" or "leading international expansion," concrete results speak louder than responsibilities.

The goal of a P&L statement is to measure a company's profits by subtracting expenses from income. This type of report helps provide an overview of the business's overall financial health.

Whenever possible, quantify your accomplishments and responsibilities. That is, use numbers, amounts, dollar values, and percentages (e.g., "Increased monthly sales by forty percent," "Supervised and trained five new employees," "Handled daily receipts totaling $3000," "Designed 14 costumes for local production of").

Instead of using "Responsible For," job seekers can use synonyms such as "Controlled," "Allocated," or "Monitored" to convey their role in managing budgets. These alternatives highlight their ability to effectively manage financial resources, track expenses, and make informed decisions to optimize budget utilization.