How to Read Your ABA Practice’s Financial Statements

Many ABA owners glaze over when they hear terms like “balance sheet” or “cash flow statement.” But these reports are your practice’s vital signs.

Here’s a quick guide to what they mean — in plain English.

Profit & Loss (P&L)

Your P&L shows revenue in vs. expenses out. It answers: Am I profitable?

Balance Sheet

The balance sheet is a snapshot. It shows what you own (assets), owe (liabilities), and what’s left over (equity).

Cash Flow Statement

This tracks how cash moves in and out. It answers: Do I have enough to keep the lights on?

Why This Matters for ABA

• P&L → reveals program profitability.

• Balance Sheet → shows how much payer lag is tying up your cash.

• Cash Flow → tells you if you can make payroll next week.

Quick Win

Each month, ask these three questions:

1. Did I make money? (P&L)

2. What do I own vs. owe? (Balance Sheet)

3. Can I pay bills on time? (Cash Flow)

Don’t let financial reports collect dust. Use them to steer your practice forward.