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>Profit and Loss Report in Cambodia: A Plain-Language Guide for Owners Who Aren’t Accountants

A profit and loss report in Cambodia can look like a wall of numbers if you’ve never been taught to read one. In accordance with standard financial guidelines from the General Department of Taxation (GDT), keeping clear revenue records is the foundation of every sustainable business. Many shop owners across Cambodia open it, see too many lines, and close it again. That’s a shame, because it answers the most important question in your business: after everything I earned and everything I spent, how much did I actually keep? You don’t need to be an accountant. You need to understand about six lines. This guide explains them in plain language, with a simple example. This guide is for understanding your numbers. It isn’t accounting or tax advice. For tax matters, ask a qualified accountant.

What a Profit and Loss Report in Cambodia Shows

A profit and loss report, often called a P&L, covers a period of time, such as a week or a month. It shows what came in, what went out, and what was left. That’s all. Everything else is detail.

The Six Lines You Need to Know in Your Profit and Loss Report

1. Revenue (or sales) All the money your customers paid you in the period. It’s the top line, and the one most owners watch. 2. Cost of goods sold What you paid for the products you sold. If you sold a drink that cost you $1 to make and sold it for $3, the $1 is the cost of goods. 3. Gross profit Revenue minus cost of goods sold. It’s what’s left after paying for your products, and before paying for running the business. 4. Expenses The cost of running your business: rent, wages, electricity, water, internet, packaging, transport, and so on. 5. Net profit Gross profit minus expenses. This is the real number: what the business actually earned. 6. Profit margin Net profit as a percentage of revenue. It tells you how much of every dollar of sales you keep.

A Simple Example

These numbers are only an example.

Line	Amount
Revenue	$5,000
Cost of goods sold	$2,000
Gross profit	$3,000
Rent	$600
Wages	$1,200
Utilities and other costs	$400
Total expenses	$2,200
Net profit	$800

The shop took in $5,000 but kept $800. The net profit margin is $800 divided by $5,000, which is 16%. So for every $100 of sales, the owner kept about $16. Notice that revenue looks impressive on its own. It’s only when you subtract costs that you see how much was truly earned.

How to Read Your Profit and Loss Report in Cambodia, Step by Step

1. Start with revenue Is it up or down compared with last month? Revenue tells you about demand. 2. Check the cost of goods If cost of goods rises faster than revenue, your suppliers may have raised prices, or you may be wasting stock, or selling at prices that are too low. 3. Look at gross profit A healthy gross profit means your products earn enough to cover your running costs. 4. Review your expenses Look at each expense. Did any jump? Is any cost bigger than you expected? 5. Finish with net profit and margin This is the answer. Compare it with last month and ask why it changed.

Warning Signs to Watch For

• Revenue is up but net profit is down. Your costs grew faster than your sales.
• Gross profit is thin. You may be underpricing your products or paying too much for them.
• One expense dominates. Rent, wages, or another cost may be taking too large a share.
• Net profit is negative. The business spent more than it earned in that period.
• Numbers swing wildly from month to month. Check whether expenses are recorded consistently.

What to Do With What You Learn

• Low gross profit: review your prices, your suppliers, and your waste.
• High expenses: look for costs you can reduce or negotiate.
• Slow sales: look at which items sell and which don’t. Our post on finding your best selling products shows how.
• Good profit: consider what to do with it, such as saving, restocking, or investing in growth.

Getting Your Profit and Loss Report From MyLekha

MyLekha includes sales, expense, and profit and loss reports. You can filter them by date, store, staff, or supplier, so you can look at a week, a month, or a single branch. The MyLekha Dashboard on iOS, Android, and the web lets you check them from anywhere. A report is only as accurate as what goes into it. Sales are recorded automatically as you sell, but expenses need to be recorded as well, or your profit will look better than it really is. Our post on expense tracking explains why this matters. You can see what the system includes on our features page, or check current plans on the pricing page.

Quick Reference

Term	Plain meaning
Revenue	Money customers paid you
Cost of goods sold	What you paid for the products you sold
Gross profit	Revenue minus cost of goods
Expenses	Costs of running the business
Net profit	What’s left after everything
Profit margin	Net profit as a percentage of revenue

FAQ

What’s the difference between revenue and profit? Revenue is all the money your customers paid you. Profit is what remains after you subtract your costs. How often should I read my profit and loss report? Once a month is a good habit for most small businesses. A quick weekly look can also help you catch problems early. Do I need to be an accountant to read one? No. Once you know the six lines above, you can read most reports. Why does my profit look better than I expected? Often because some expenses haven’t been recorded. Make sure rent, wages, and other costs are included. Can I see a profit and loss report for just one branch? Yes. Reports can be filtered by store, so you can look at one branch or the whole business.

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