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Condense P&L detail into categories

While your chart of accounts present important detail, try to group these into categories. There is no right number; however, between 6 and 10 is ideal. General categories include revenues, cost of sales, personnel costs, administrative costs, facility & equipment costs and other income & expense. Segregate owner costs if they deserve segregation. And setup industry specific categories should they exist – research & design and selling & marketing.

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